Eurofound's ERM database on restructuring-related legal regulations provides
information on regulations in the Member States of the European Union and Norway
which are explicitly or implicitly linked to anticipating and managing change.
Denmark: Severance pay/redundancy compensation
Phase
The Danish Act on the legal Relationship between Employers and Salaried Employees (Consolidation Act LBK LBK no 1002 af 24/08/2017)
Native name
Bekendtgørelse af lov om retsforholdet mellem arbejdsgivere og funktionærer (LBK LBK nr 1002 af 24/08/2017)
Type
Severance pay/redundancy compensation
Added to database
08 May 2015
Article
Article 2
Description
Dismissed employees are entitled to notice pay.
For salaried workers this is the following (for non-salaried workers this is regulated in collective agreements):
one month notice pay for service of up to five months;
three months for service of five months to two years and nine months;
four months for service of two years and nine months to five years and eight months;
five months for service of just over five years and eight months to eight years and seven months;
six months for longer service than eight years and seven months.
In addition, for service of 12, 15, 18 years employees are entitled to redundancy pay under Section 2a of the Salaried Employees Act (one, two and three months’ salary respectively).
These are valid for individual as well as collective dismissals; there is no general legal entitlement to anything more than is provided for in an individual dismissal unless envisaged by a collective agreement or social plan.
Commentary
In addition to contractual or collectively agreed redundancy pay, recent case law has further clarified employers’ obligations under the Danish Act on Collective Redundancies. In Eastern High Court, BS-36961/2022-OLR (26 May 2025), the Court ruled that the 30-day compensation under Section 11(1) is a statutory allowance and not loss-based. Employers cannot deduct income from new employment during this period, nor are they required to pay holiday pay on this compensation
Additional metadata
Cost covered by
Employer
Involved actors other than national government
National government
Involvement (others)
None
Thresholds
Affected employees: No, applicable in all circumstances Company size: No, applicable in all circumstances Additional information: No, applicable in all circumstances
Ius Laboris (2009). Collective Redundancies Guide, Brussels
Alpha Consulting (2003). Anticipating & Managing Change - A dynamic approach to the social aspects of corporate restructuring, Brussels, European Commission
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