Employment
The flexicurity model, driven by collective agreements not statute
Danish labour law is dominated by the 'Danish model' in which pay and most conditions are set by collective agreements rather than statute. Hiring and firing are flexible, balanced by strong unemployment support.
Key rules
- There is no statutory minimum wage; pay floors come from collective agreements.
- The Salaried Employees Act (Funktionærloven) sets notice and protections for white-collar staff.
- Dismissal is relatively easy, offset by generous benefits and active labour-market policy.
Governing law
- Salaried Employees Act (Funktionærloven)
- Holiday Act (Ferieloven)
In practice
Because so much depends on the applicable collective agreement, the first question in any Danish employment dispute is which agreement, if any, covers the workplace.