When are you as an employer entitled to terminate an employee? What notice periods should you be aware of, and how should the actual termination take place? Learn more here.
It can be difficult to navigate the rules for termination - no matter which side of the table you sit on: employer or employee. Here's an overview of what you need to be aware of if you as an employer want to terminate an employee.
First and foremost, the rules for terminating an employee depend on the terms under which the employee is employed. The details of this can be found in the employee's employment contract and in the collective agreement or law the employee is covered by.
Is the employee a salaried employee?
If the employee is employed as a salaried employee, you must comply with the rules for termination in the Salaried Employees Act. The Danish Salaried Employees Act sets out the rules for the notice period you as an employer must give, and this depends on the employee's length of employment. See the notice periods in the table here:
Source: virksomhedsguiden.dk
Is the employee covered by a collective labour agreement?
The termination rules in the collective labour agreements vary widely, so you should refer to the specific collective agreement that the employee you want to terminate is employed under. Here you will also find the rules for the length of notice periods and any special rules for the procedure you need to follow.
Is the employee covered by other employment relationships?
If the employee is not covered by the Salaried Employees Act or any collective agreements, no general rules for notice periods apply. In this case, the rules for termination depend on the termination terms written in the employee's employment contract.
Is the employee “specially protected?”
As an employer, you must be aware of the Discrimination Act and the Equal Treatment Act, which protect certain employees in connection with termination. According to the law, you as an employer cannot emphasise the following when terminating an employee:
- Age
- Gender
- Pregnancy or fertility treatment
- Handicap
- Ethnicity
- Sexuality
- Religion
- Political beliefs
In addition, employees with positions of trust, such as shop stewards and health and safety representatives, in the company may also be protected.
The above does not mean that it is impossible to terminate a particularly protected employee, but there must be a factual reason for the termination, including clear evidence that the termination is not due to e.g. maternity, age, sexuality, religion, etc.
What should the notice contain?
There are no general rules on how you as an employer should terminate the employment relationship, but the Danish Salaried Employees Act recommends that you do so in writing, as it ensures the provision of evidence. For the same reason, you should ask the employee for a written confirmation of receipt of the termination.
There is also no requirement for you to give a reason for the termination, but if the employee requests it, the Danish Salaried Employees Act requires you to give one. Examples of factual reasons include cutbacks, savings, organisational changes, cooperation difficulties or illness.
To ensure that all parties understand the circumstances surrounding the termination, you can describe the rules that apply during the notice period and after the resignation. Here you can cover the following:
- Holiday settlement
- Time off in lieu
- Pay conditions during the notice period
- Severance pay, if any
- Loyalty and competition conditions/ any clauses
- Allowances/benefits
- Fritstilling/suspension
- Return of equipment/keys/access cards
Salary and benefits during the notice period
During the period from the termination of the employee's employment to the actual termination, the employee must generally receive their normal salary including supplements, bonuses, commission and benefits. However, if the employee is laid off, you have the option to make a set-off in the salary after 3 months if the employee finds other employment.
Get a good ending to your employment
The termination is not only important for the employee. It also has an impact on colleagues and any business partners that you as an employer should inform. Prepare well before you share the news with the rest of the workplace to avoid creating anxiety and unease about the situation among those who remain. If the employee has been the link between the company and an external party, they should also be informed well in advance and informed of a possible new contact person.
You should also consider how the employee's tasks should be handed over. Should a colleague take over the tasks during the notice period? Or should a new employee be hired and trained in the tasks only after the employee's last working day?
Keep track of your employees
Have you just terminated an employee? Or has an employee resigned? With Intempus’ intelligent time tracking system, you can easily keep track of the employees in your organisation. If there are changes in employee groups such as reorganisations, layoffs or new hires, you can easily add or remove employees from the system, so you always have an accurate overview of who is employed on which collective agreements and in which groups.
Curious to hear more? Book a free and non-binding demo here:
Are you an employee and thinking about quitting your job?
If you want to terminate your position, you should also be aware of a number of points. We have summarised them in a blog post here.
Sources: Retsinformation.dk, Virksom.dk
