Employment certificate: legal requirements

As an employer you are obliged to give your employee written information about the central terms of employment. It is not just good practice, it is mandatory. And since the EU Working Conditions Directive came into force in Denmark in 2023, the requirements have become more extensive.

This guide gives you a complete overview of what an employment certificate must contain, when it must be handed over, and what happens if you as an employer do not comply with the rules.

Note: The requirements can vary depending on any collective agreements. If you are covered by a collective agreement, it may have supplementary requirements. Always check the specific terms of your collective agreement.

What is an employment certificate?

An employment certificate (also called an employment contract) is a written document that describes the central terms of the employment relationship. It is mandatory and is governed primarily by:

• The Act on Employment Certificates and Certain Working Conditions (LOV no. 501 of 16/05/2023, in force 1 July 2023, which replaces the former Employment Certificate Act)
• The EU Working Conditions Directive (implemented in Denmark from 1 August 2023)

The implementation of the EU directive has markedly expanded the requirements and made it even more important to have an up-to-date and complete employment certificate.

When must the employment certificate be handed over?

Situation	Deadline
Employment with work from day one	Within 7 days of the start of employment
Central changes to the terms	Within 7 days of the change
Elements that can be disclosed within 1 month	1 month from the start of employment

Important: The 7-day deadline is absolute for the most important information. Comply with it.

What must the employment certificate contain?

The Act divides the information requirements into two categories: information that must be given within 7 days, and information that can be given within 1 month.

Information within 7 days

1. The parties' identity, the employer's and employee's name and address
2. The address of the workplace, or an indication that there is no fixed workplace
3. Job title and job description, or a description of the nature of the work
4. Start of employment, the date from which the employment relationship begins
5. Type of employment, whether it is fixed-term or open-ended
6. Salary and supplements, basic salary, supplements and payment frequency
7. Working hours, the daily or weekly working time
8. Holiday, number of holiday days and holiday percentage
9. Notice period, mutual notice period (or a reference to rules/collective agreement)
10. Collective agreements, a reference to any collective agreement

Supplementary information within 1 month

1. Probation period, duration and terms of the probationary employment
2. Training and skills-development rights, whether there is a right to training paid by the employer
3. Pension scheme, whether there is a pension scheme, who administers it, and the employer's contribution
4. Overtime rules, conditions for overtime and payment for it
5. Shift work, rules for shift work, if relevant
6. Social security schemes, the names of the institutions that receive contributions

The new requirements since 2023

The EU Working Conditions Directive added, from 1 August 2023, a series of new requirements that many Danish employers have not yet updated their employment certificates to reflect:

• Training paid by the employer: if the employer has a duty to offer training, this must be stated explicitly
• Variable working hours: for employment with variable working hours (for example zero-hours contracts), information must be given about times, notice, etc.
• Time limits for legal action: information about relevant deadlines in court cases
• Rights on dismissal: a written right to reasons for dismissal in certain cases

If you have not updated your employment certificates since August 2023, now is a good time to do it.

Special situations

Fixed-term employment

For fixed-term employment, the employment certificate must clearly state:

• That the employment is fixed-term
• The end date (or the event that causes it to end)
• The objective reason for the fixed term (for example a maternity cover, a project role, seasonal work)

Part-time employment

For part-time employees, the employment certificate must state precisely the weekly number of hours. Part-time employees generally have the same rights as full-time employees, just pro rata.

Home working and mobile workers

If the employee does not have a fixed workplace, for example consultants, drivers or home workers, this must be stated, and freedom to set their own workplace may need to be indicated.

Employees abroad

If the employee is sent to work abroad for more than 4 consecutive weeks, the employment certificate must be supplemented with information about:

• The duration of the work abroad
• The currency in which the salary is paid
• Any supplements and expense reimbursements
• Terms for the return journey

What happens if the employment certificate is deficient?

An employer who does not comply with the Act can incur liability:

Compensation to the employee

The employee can claim compensation of up to 13 weeks' pay for a missing or deficient employment certificate, but only if the missing information has had a concrete significance for the employee's legal position.

The burden-of-proof rule

If the employment certificate is deficient, the employee can in a dispute use the burden-of-proof rule: it is the employer who must prove that the correct terms applied, not the employee.

Example: The employee and employer disagree about the notice period. Because the employment certificate does not mention it, it is the employer who must prove that a shorter notice was agreed.

The case is decided by the courts

Compensation for a missing or deficient employment certificate is awarded by the courts. If the employment relationship is covered by a collective agreement, the case is handled in the labour-law (fagretlige) system. The Working Environment Authority (Arbejdstilsynet) does not enforce the employment-certificate rules.

Tips for a good employment certificate

1. Use an up-to-date template, not one that is 10 years old and does not contain the EU directive's requirements
2. Be specific, vague formulations like "salary according to the collective agreement" are not always sufficient
3. Avoid contradictions, the contract and the collective agreement must not conflict
4. Sign and keep, both parties should sign and keep a copy
5. Update on changes, the Act requires an update on material changes to the terms

With LegalDock's employment-contract template you ensure that you meet all legal requirements, including the updated requirements from 2023.

Employment certificate vs. employment contract

In everyday speech the two terms are often used interchangeably, but there is a technical difference:

• Employment certificate: the mandatory written information about the terms of employment, can be drawn up as a one-sided certificate
• Employment contract: a bilateral agreement that both documents the terms and constitutes the agreement itself, legally stronger

In practice it is always recommended to use a contract signed by both parties.

Practical examples: what happens when the employment certificate is deficient?

Scenario 1: Disagreement about the notice period

Jonas is employed as a salesperson. No written contract. The company dismisses him with 1 month's notice. Jonas believes that after more than 3 years' employment he is entitled to 3 months' notice (the rules of the Salaried Employees Act). Because there is no employment certificate, it is the employer who must prove that Jonas was not a salaried employee, the burden of proof is reversed. The case ends in a settlement in Jonas's favour.

Scenario 2: Doubt about whether the salary is correct

Nadja is employed as a marketing assistant. Her employment certificate states "salary according to the collective agreement", without specifying which one. She is unsure whether she is paid correctly. As the employment certificate is too vague, she is entitled to clarification, and the employer risks having to pay compensation if the missing information has had a concrete significance.

Scenario 3: New employee, no certificate handed over

Erik hires his first employee and forgets to hand over an employment certificate within 7 days. The employee can require a correct employment certificate and possibly compensation from the courts. Erik hands over a correct employment certificate immediately. As no concrete harm is documented, any compensation is low, but the situation is unpleasant and unnecessary.

Overview: the EU directive's new requirements from 2023

The EU Working Conditions Directive (2019/1152) came into force in Denmark on 1 August 2023 and markedly expanded the requirements for employment certificates.

New requirement	What must be stated
Training rights	Whether the employer provides training, and if so the extent
Variable working hours	Time frames, reference hours, notice period
Social security	Names of the institutions that receive contributions
Probation and duration	Explicit statement and reason
Time limits for action	Information about relevant limitation periods
Identification of other employers	For flexible employment and the platform economy

If you use an employment contract from before 2023, it is probably not updated. With LegalDock's employment-contract template, all requirements from the 2023 directive are incorporated.

Frequently asked questions about the employment certificate

What happens if I do not receive an employment certificate?

You should immediately ask your employer for it in writing. If it is not handed over within 7 days of the start of employment, the law has been breached. You can require the information in writing, and you can potentially claim compensation from the courts, up to 13 weeks' pay, if the missing information has had a concrete significance for your legal position.

Can the employer change the terms unilaterally during employment?

No. The terms of employment are a bilateral agreement and can as a rule only be changed with both parties' acceptance. A unilateral material change (for example a salary reduction, changed working hours) is normally regarded as a dismissal followed by an offer of a new contract. The employee can reject it and claim severance.

Is an email enough as an employment certificate?

Yes. The law requires "writing", and an email meets this requirement. But a signed contract in PDF is better, because both parties' acceptance is documented. An email reply from the employee ("confirmed") strengthens the documentation.

What applies to the probation period, and must it be in the employment certificate?

A probation period is optional, but must appear in the employment certificate if it is agreed. The law's absolute maximum is 3 months (for salaried employees). During probation the notice period is normally shorter, typically 14 days. Probationary employees otherwise have the same rights as permanent employees.

Summary

The requirements for employment certificates have been tightened by the EU directive in 2023. As an employer you must:

• Hand over the employment certificate within 7 days of the start of employment
• Include all the mandatory information, including the new 2023 requirements
• Update the certificate on material changes
• Keep a signed copy

Non-compliance can cost up to 13 weeks' pay in compensation, and the burden of proof is turned against you in a dispute.