Employment contract guide: what must it contain? (2026)

An employment contract is more than a formality. It is the legal foundation for the entire working relationship, and as an employer you are obliged to issue it within the deadlines set by law. If you do not, you risk a claim for compensation from the employee. If you do it wrongly, you can end up with terms you did not realise you had agreed.

This guide runs through what a Danish employment contract must legally contain, which clauses are important but not mandatory, and the mistakes employers most often make.

What does the law say about the employment contract?

From January 2023, an updated implementation of the EU Working Conditions Directive came into force in Denmark. It imposes stricter requirements on employment certificates and contracts and gives employees markedly stronger rights to written documentation.

Who is covered? All employees who work more than 3 hours a week on average over a reference period of 4 weeks are entitled to a written employment contract.

When must the contract be handed over?

• The most important terms: no later than 7 days after the start of work
• Other terms: no later than 1 month after the start of work

If the deadlines are not met, the employee can claim compensation of up to 20 weeks' pay.

The mandatory information

The law and the Working Conditions Directive require that this information appears in the contract:

1. The parties

• The employer's full name, address and CVR number
• The employee's full name and address

2. The workplace

A statement of the usual workplace. If the employee primarily works from home, or the workplace varies, this is stated.

3. Job title and job description

A clear description of the position and the primary tasks. The more precise, the better, a vague job description can create conflict about the scope of the tasks.

4. The start date of employment

The date on which the work begins.

5. Expected duration (for fixed-term employment)

If the employment is fixed-term, the end date or the expected end must be stated.

6. Salary and supplements

• The basic salary
• Any supplements (night, weekend, overtime supplements, etc.)
• Payment period (monthly, fortnightly, etc.)
• Payment method (bank account, etc.)

7. Working hours

The normal weekly number of hours. For flexible working hours: a description of the framework of the arrangement.

8. Notice period

Mutual notice period or a reference to the applicable rules in the Salaried Employees Act, collective agreement or agreement.

9. Holiday

The extent of holiday (minimum: 25 days under the Holiday Act; many collective agreements additionally give up to 5 extra holiday days) and a reference to the Holiday Act.

10. Collective agreement

If the employment is covered by a collective agreement, it must be mentioned.

11. Right to training (new from 2023)

The employee's any right to employer-paid training.

12. Social security schemes

Information about any pension schemes, insurance or other social benefits.

13. Probation period

If a probation period is agreed, the duration and terms are stated. The maximum probation period for salaried employees is 3 months.

Important clauses that are not mandatory, but which you should consider

In addition to the legal requirements there are a number of clauses that are not obligatory but are in the employer's interest to include:

Non-compete clause

A non-compete clause prohibits the employee from taking employment with competitors or starting a competing business for a period after the employment ends.

Important limitation: A non-compete clause is governed by the Employment Clauses Act (ansættelsesklausulloven) and requires that the employee receives compensation during the clause period, at least 40% of the salary for clauses up to 6 months and at least 60% up to 12 months. Without compensation the clause is invalid. The clause can only be imposed on an employee in a specially trusted position (regardless of whether they are a salaried employee) who has been employed for at least 6 months. Always obtain legal advice for non-compete clauses.

Non-solicitation (customer) clause

Prohibits the employee from contacting the employer's customers for a period after the employment, but only customers the employee has personally had a business relationship with within the last 12 months. A non-solicitation clause requires the same compensation as a non-compete clause. If the two clauses are combined, the total duration may be at most 6 months.

Confidentiality clause

Obliges the employee not to pass on the company's confidential information, not even after the employment ends. See our guide to confidentiality agreements for more information.

Copyright and intellectual property

Who owns what the employee creates during working hours? In Denmark, creations made as part of the employment as a rule belong to the employer, but it is recommended to clarify this explicitly, especially in tech companies and creative industries.

Salary adjustment and regulation

A statement of the procedure for salary negotiations (for example annual adjustment).

Flexible/hybrid working and home working

Rules for home working, availability and any compensation for a home workplace.

Side employment

A clause requiring the employee to inform the employer of, and obtain acceptance for, side employment.

Employment contract and collective agreement, what applies?

Many industries in Denmark are covered by collective agreements that set minimum standards for salary, working hours, supplements and other terms. If your company is bound by a collective agreement, it is crucial that the employment contract does not deviate negatively from the collective agreement's minimum requirements.

An employment contract can give employees better terms than the collective agreement. But it cannot reduce the collective agreement's rights.

If you are unsure whether your company is bound by a collective agreement, check this with your industry association or Dansk Erhverv/DI.

Employment contract for fixed-term employment

Fixed-term employment, temporary cover, project employment, seasonal staff, requires special attention:

• State explicitly that the employment is fixed-term
• State the end date or the expected end
• A fixed-term employment cannot be terminated during the period unless this is expressly agreed and the notice period is stated

Fixed-term employment cannot be repeated without limit. Repeated fixed-term employment of the same person for the same task can be converted by the courts into permanent employment.

See our detailed guide to fixed-term employment contracts.

Employment contract for directors

For directors with management responsibility and significant powers, special rules apply. A director's contract resembles an employment contract, but is typically:

• More detailed as regards the division of responsibility and power to bind the company
• Includes bonus structure and long-term incentives
• Specifies the director's position in the management structure
• Can contain special termination terms

See our guide to director contracts.

Termination and departure, what should be in the contract?

The contract should describe:

Notice periods For salaried employees there are statutory notice periods that rise with seniority (1-6 months). Employees under a collective agreement have collectively agreed notice. For hourly employees other rules apply. The contract should state what applies, and whether more favourable terms have been agreed.

End of probation During probation both parties can typically terminate with 14 days' notice without further grounds. State the duration of probation and the notice period clearly.

Severance pay For employees with over 12 and 17 years' seniority there is a requirement of severance pay (1-3 months' salary). It is not required to state this in the contract, but it is good practice.

The most common mistakes employers make

Too vague a job description A diffuse description of the tasks gives the employee room to refuse new tasks not mentioned in the contract.

No statement of probation Probation is not automatic, it must be agreed in writing. If you forget to state probation, it is not valid.

Invalid non-compete clauses A non-compete clause without compensation is invalid. Many employers include them anyway, and discover too late that they cannot be enforced.

Late delivery The contract must be handed over within 7 days (the most important terms) and 1 month (all terms). If this is not met, you risk a claim for compensation.

Copy-paste from an outdated template The employment-certificate law markedly changed the requirements in 2023. Use an up-to-date template.

Electronic signing of the employment contract

An employment contract can be validly signed digitally in Denmark. A digital signature via MitID is legally equal to a handwritten signature. It gives advantages:

• Faster onboarding, the employee can sign before the first working day
• Automatic archiving, the document is stored and accessible to both parties
• Traceability, who signed when

LegalDock supports digital signing of employment contracts directly in the platform.

Frequently asked questions about employment contracts

Can oral agreements about terms of employment apply?

Oral agreements are in principle valid in Danish law, but they are almost impossible to prove. If a dispute arises, it is your word against the employee's. This is one of the most important arguments for always having a written employment contract.

What happens if the contract lacks a mandatory point?

If the contract lacks mandatory information, the employee can claim compensation. The courts will moreover interpret ambiguities in the employee's favour.

Can I use the same contract for all employees?

A standard contract can be used as a starting point, but should be adapted to the specific terms of the position, especially as regards salary, working hours and any clauses. A director cannot have the same contract as an hourly-paid shop assistant.

Is a probation period mandatory?

No. Probation must be agreed explicitly. For salaried employees the maximum probation period is 3 months.

Can I change the employment contract after signing?

Yes, but only with the employee's consent. Unilateral changes to essential terms (salary, working hours, position) are regarded as a dismissal. Changes should always be documented in writing.

Conclusion

A correct employment contract protects your company and ensures clarity for the employee from day one. With the stricter requirements from the 2023 revision of the employment-certificate law, it is more important than ever to use an up-to-date and legally correct template.

LegalDock's employment-contract template is updated to the applicable rules and gives you a complete contract in minutes, ready for digital signature.

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The content of this article is for guidance only and does not constitute legal advice. Consult a lawyer or HR lawyer for advice on your specific situation.