Permanent Employment Contract

Permanent Employment Contract Template for Denmark

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Document background

This Permanent Employment Contract template is designed for use in establishing full-time, indefinite-term employment relationships in Denmark. It is structured to comply with Danish employment law requirements, particularly the Danish Salaried Employees Act (Funktionærloven) and the Danish Act on the Employer's Obligation to Inform Employees (Ansættelsesbevisloven). The contract should be used when hiring permanent employees in Denmark and includes all mandatory information required by Danish law, such as working conditions, compensation, benefits, notice periods, and holiday entitlements. It can be customized for various positions and sectors while maintaining compliance with Danish employment regulations, collective agreements where applicable, and GDPR requirements. The document serves as a fundamental agreement defining the employment relationship and protecting both parties' interests.

Suggested Sections

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

2. Background: Brief context about the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

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

5. Commencement Date: Start date of employment and any probationary period

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

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. Holiday Entitlement: Annual leave entitlement and holiday pay in accordance with the Danish Holiday Act

10. Absence and Sick Pay: Procedures for reporting absence and sick pay entitlements

11. Notice Period: Notice periods for termination by either party

12. Confidentiality: Obligations regarding company confidential information

13. Data Protection: Handling of personal data in compliance with GDPR

14. Governing Law: Confirmation that the agreement is governed by Danish law

Optional Sections

1. Bonus Arrangements: Include when the employee is eligible for performance-based bonuses or commission

2. Share Options: Include when the employee is offered company shares or share options

3. Non-Competition: Include for senior positions or roles with access to sensitive information, subject to Danish legal restrictions

4. Intellectual Property: Include for roles involving creative work or invention

5. Company Car: Include when a company car is provided as part of the package

6. Flexible Working: Include when specific remote working or flexible arrangements are agreed

7. Training and Development: Include when specific training obligations or development programs are part of the role

8. International Travel: Include when the role requires regular international travel

Suggested Schedules

1. Schedule 1 - Job Description: Detailed description of roles, responsibilities, and reporting lines

2. Schedule 2 - Benefit Details: Comprehensive list and description of all benefits provided

3. Schedule 3 - Bonus Scheme Rules: Detailed rules and calculations for any applicable bonus schemes

4. Schedule 4 - Company Policies: Key company policies that form part of the employment terms

5. Schedule 5 - IT and Communication Systems Policy: Rules regarding use of company IT systems and equipment

6. Appendix A - Personal Data Processing: Detailed information about how the employee's personal data will be processed

7. Appendix B - Company Car Policy: Terms and conditions for use of company car, if applicable

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