Rules and Procedures for Terminating Employment During the Probation Period in Denmark
Terminating employment during the probation period in Denmark involves specific legal and procedural requirements. This article outlines the key rules and considerations employers and employees should be aware of.
Overview of Termination Rules During Probation
During the probation period, employment can be terminated without the need for justification. However, certain rules regarding notice periods, severance, and timing must be followed to ensure compliance with Danish labor laws.
Notice Period Requirements
Standard Notice Period: Employers must provide at least 14 days’ notice unless the employment contract specifies a longer notice period. If the contract sets a longer notice period, the more favorable terms for the employee apply. For example, if the contract requires 30 days’ notice, the employer must adhere to this.
Pay in Lieu of Notice (PILON): Immediate termination is possible if the employee agrees in writing (email confirmation suffices). In such cases, the employer must pay the employee an amount equal to the contractual notice period.
Severance and Final Payments
Severance: There is no statutory severance pay during the probation period. Employees are entitled only to their final salary and accrued holiday pay, which is typically settled through the statutory holiday system (e.g., FerieKonto).
Timing and Effective Termination Dates
Effective Termination Date: The termination date is the end of the month following the expiry of the notice period. Employers must ensure that notice is served before the probation period ends; otherwise, standard post-probation notice rules will apply.
Timing Considerations: Decisions regarding termination should be made early enough within the probation window to complete the process in compliance with the rules.
Special Considerations
Employer of Record Responsibilities: The legal employer (employer of record) is responsible for issuing the termination notice. While client instruction or approval may be required, the notice itself must be sent by the employer.
By adhering to these rules and procedures, employers can ensure compliance with Danish labor laws while managing employment terminations during the probation period effectively.