Phase
The Danish Act on Employees' Rights in the event of Transfers of Undertakings (Consolidation Act no. 710 of 22 August 2002; The Danish Act on Information and Consultation of Employees (Act no. 303 of 2 May 2005)
Native name
Bekendtgørelse af lov om lønmodtageres retsstilling ved virksomhedsoverdragelse (LBK nr 710 af 20/08/2002); Lov om information og høring af lønmodtagere (LOV nr 303 af 02/05/2005)
Type
Staff information and consultation on business transfers
Added to database
08 May 2015

Article

The Danish Act on Employees' Rights in the event of Transfers of Undertakings, Articles 1-4 The Danish Act on Information and Consultation of Employees, Article 4


Description

Under the Danish Act on Employees’ Rights in the event of Transfers of Undertakings, the transferor must within 'reasonable time' initiate negotiations with the employees or the representatives if the transferor is contemplating measures affecting the employees.

The employer must provide, through employees' representatives, the employees with adequate information on matters which affect them, such as when he/she plans to hand over business. Further, the employer must consult the employees' representatives on these matters.

In the event of transfer of an enterprise, the acquirer immediately takes over the rights and duties that existed in the time of transfer regarding collective agreements and other existing provisions regarding wage and working conditions.

Dismissal due to transfer of enterprise is not deemed as reasonably justified in the conditions of the enterprise, unless the dismissal is due to financial, technical, or organisational reasons that imply employment-related changes.  

In 2021 (27/3) a minor addition was made, which states that if the transfer takes place during the reconstruction or bankruptcy period, the acquirer is only responsible for employees rights and obligations in the period after the initiation of reconstruction or bankruptcy decreed. (§2 stk. 4) 


Commentary

n/a


Additional metadata

Cost covered by
Not available
Involved actors other than national government
Regional/local government Works council
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

Sources

Citation

Eurofound (2015), Denmark: Staff information and consultation on business transfers, Restructuring legislation database, Dublin, https://apps.eurofound.europa.eu/legislationdb/staff-information-and-consultation-on-business-transfers/denmark

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