Hiring in Denmark

The terms set out role, salary in DKK, working time, holiday, notice and any restrictive covenants. The EOR is the counterparty to the employee, which is what removes the need for your own entity.

The core terms must be issued within 7 calendar days of the start date, and English is standard for commercial roles. Check whether a collective agreement covers the role, because it can set pay, hours and pension above the contract.

Fixed-term contracts are permitted, but successive renewals need an objective reason and most EORs default to indefinite terms.

Set probation from day one. The 14 days' notice must run out within the 3 months, so a decision to let someone go has to be made before the final fortnight.

Some EORs shorten probation as policy because they, not you, carry the dismissal risk. Ask before you agree a start date.

Where a collective agreement covers the role, it sets the overtime rate and any time off in lieu. An 11-hour daily rest period and a weekly day off also apply.

Senior professionals often have overtime built into salary, so overtime becomes a contractual matter rather than a collective one. Put the position in writing either way.

Market practice for professional roles is often 30 days, because a sixth holiday week is common, so quote the market figure when you budget. Salaried staff also receive a 1% holiday supplement, plus a 0.45% salary supplement that replaced Great Prayer Day when it stopped being a public holiday in 2024.

Salaried employees keep full pay when sick, and the employer carries the first 30 days before municipal reimbursement starts. Parental leave is largely state funded, but employers often pay full salary and reclaim it through the Barsel.dk scheme, so confirm which side the EOR carries.

Notice runs to the end of a month, and the employer may release the employee from duty for the notice period rather than pay in lieu. Severance is one month's pay after 12 years and three months after 17, unless a collective agreement or the contract says more.

The EOR runs the process as the legal employer and will want the paperwork in order, including final pay, accrued holiday and any contractual severance. Salaried employees with a year's service can claim compensation if the dismissal is not reasonably justified, so keep a documented reason.

Occupational pension, health insurance and group life are standard for professional roles even though they are not mandatory. Employer pension contributions of 8% to 12% of salary are typical, so include them in the offer.

EORs often bundle benefits through a group scheme. Ask what is included in the fee and what is billed on top.

Statutory employer contributions are flat amounts rather than a percentage, roughly DKK 8,000 to 11,000 per full-time employee a year across ATP, AUB, Barsel.dk and occupational injury cover. That is before pension and the EOR fee.

The tax card is the trap. A new hire without a tax card is taxed at 55% until one is issued, and the Danish Tax Agency will not issue it earlier than a month before the start date, so build that into the onboarding timeline.

Ask whether the EOR sponsors directly or refers to a partner. A partner-model EOR often cannot sponsor at all, because the permit is tied to the Danish employer on the application. The Fast-track route also needs a SIRI-certified employer with at least 10 full-time staff in Denmark.

SIRI can take up to 3 months if it needs more documents, so set start dates after approval, not before.

Get the data processing terms in the service agreement, not just the privacy notice. Transfers outside the EEA need a lawful basis such as an adequacy decision or standard contractual clauses.

Ask where payroll data is hosted and who in the partner chain can see it. CPR numbers carry extra restrictions under Danish law.

Incorporation here is quick and an ApS needs only DKK 20,000 in share capital, but the running cost is the point: accounting, an annual report, audit unless the company qualifies for the small-company exemption, digital bookkeeping and payroll software set an annual floor.

Permanent establishment risk is about what people do, not where payroll sits. Revenue-generating activity can create exposure regardless of the employment route.