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Local Employment Contract

Local Employment Contract Template for Denmark

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Local Employment Contract

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Document background
The Local Employment Contract is designed for use in Denmark when establishing formal employment relationships between companies and individuals. This contract type ensures compliance with Danish employment legislation, including the Danish Contracts Act (Aftaleloven), the Salaried Employees Act (Funktionærloven), and other relevant employment laws. It provides a comprehensive framework for documenting the employment relationship, covering mandatory elements required by Danish law such as working conditions, salary, benefits, and notice periods. The document is essential for both protecting employer interests and ensuring employee rights under Danish jurisdiction, while maintaining clarity and transparency in the employment relationship. It should be used whenever hiring employees in Denmark, regardless of whether the employment is covered by a collective agreement.
Suggested Sections

1. Parties: Identification of the employer and employee with full legal names and addresses

2. Background: Brief context of the employment relationship and reference to any preceding agreements or negotiations

3. Definitions: Key terms used throughout the agreement

4. Position and Duties: Job title, role description, and primary responsibilities

5. Commencement and Duration: Start date, probationary period if applicable, and whether the contract is fixed-term or permanent

6. Place of Work: Primary workplace location and any flexibility requirements

7. Working Hours: Standard working hours, flexibility requirements, and overtime arrangements

8. Salary and Benefits: Base salary, payment frequency, pension contributions, and other standard benefits

9. Holidays and Leave: Annual holiday entitlement, holiday pay, and public holidays in accordance with Danish Holiday Act

10. Illness and Absence: Procedures for reporting illness and rules regarding sick pay

11. Confidentiality: Obligations regarding company confidential information

12. Intellectual Property: Ownership of work products and innovations created during employment

13. Data Protection: Employee personal data handling in compliance with GDPR and Danish Data Protection Act

14. Termination: Notice periods and conditions for termination by either party

15. Governing Law: Confirmation of Danish law as governing law and jurisdiction

16. Signatures: Execution section for both parties

Optional Sections

1. Competition and Non-Solicitation: Used when requiring post-employment restrictions on competition and customer/employee solicitation

2. Company Car: Include when providing a company car, detailing terms of use and tax implications

3. Commission Structure: For sales positions or roles with variable compensation

4. International Travel: When the role requires regular international travel

5. Home Working: Include when allowing regular work from home arrangements

6. Training Requirements: For positions requiring specific ongoing training or certifications

7. Share Options: When offering employee share schemes or stock options

8. Collective Agreement Reference: When the employment is covered by a collective agreement

9. Bonus Scheme: When offering performance-based bonuses or other variable compensation

Suggested Schedules

1. Schedule 1 - Job Description: Detailed description of responsibilities and performance expectations

2. Schedule 2 - Compensation Details: Breakdown of salary components, benefits, and any variable compensation

3. Schedule 3 - Company Policies: Key company policies including IT, social media, and code of conduct

4. Schedule 4 - Bonus Scheme Rules: Detailed rules and calculations for any applicable bonus schemes

5. Schedule 5 - Data Privacy Notice: Detailed information about personal data processing

6. Appendix A - Company Car Policy: Terms and conditions for company car usage if applicable

7. Appendix B - Home Working Policy: Guidelines and requirements for working from home if applicable

8. Appendix C - IT Security Policy: Rules and procedures for IT security and acceptable use

Authors

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Relevant legal definitions
Agreement
Company
Confidential Information
Intellectual Property Rights
Employment Period
Probationary Period
Working Day
Working Hours
Normal Business Hours
Base Salary
Total Remuneration
Bonus
Benefits
Group
Affiliate
Line Manager
Workplace
Notice Period
Cause
Company Property
Work Product
Personal Data
Collective Agreement
Professional Secrecy
Trade Secrets
Material Breach
Governing Law
Immediate Family
Competitor
Territory
Customer
Business Partner
Invention
Sick Pay
Holiday Year
Clauses
Appointment
Duration
Probationary Period
Position and Duties
Place of Work
Working Hours
Salary
Pension
Benefits
Expenses
Holiday Entitlement
Sick Leave
Parental Leave
Other Leave
Performance Review
Training
Confidentiality
Intellectual Property
Data Protection
Non-Competition
Non-Solicitation
Company Property
Code of Conduct
Health and Safety
Collective Agreements
Changes to Terms
Notice Period
Summary Termination
Garden Leave
Post-Termination Obligations
Return of Property
Governing Law
Severability
Entire Agreement
Amendments
Relevant Industries
Relevant Teams
Relevant Roles
Industries
Danish Contracts Act (Aftaleloven): Fundamental law governing the formation and validity of contracts, including employment contracts, in Denmark
Danish Act on the Employer's Obligation to Inform Employees of the Conditions Applicable to the Employment Relationship (Ansættelsesbevisloven): Specifies the mandatory information that must be included in employment contracts and the employer's obligation to provide written terms of employment
Danish Holiday Act (Ferieloven): Regulates employees' rights to paid holiday, holiday allowance, and the timing of holidays
Danish Equal Treatment Act (Ligebehandlingsloven): Ensures equal treatment between men and women in employment, including provisions on maternity/paternity leave and protection against discrimination
Danish Act on Working Environment (Arbejdsmiljøloven): Sets standards for health and safety at work, working hours, and general working conditions
Danish Salaried Employees Act (Funktionærloven): Provides specific rights and obligations for white-collar workers, including notice periods, sick pay, and termination rules
Danish Personal Data Act (Databeskyttelsesloven): Implementation of GDPR in Denmark, governing the processing of employee personal data
Danish Act on Prohibition of Discrimination in the Labor Market (Forskelsbehandlingsloven): Prohibits discrimination based on race, color, religion, political opinion, sexual orientation, age, disability, or national, social or ethnic origin
Danish Sick Pay Act (Sygedagpengeloven): Regulates sick pay and employer obligations during employee illness
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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