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Local Employment Contract

Local Employment Contract Template for Denmark

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Local Employment Contract

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Document background
The Local Employment Contract is designed for use in Denmark when establishing formal employment relationships between companies and individuals. This contract type ensures compliance with Danish employment legislation, including the Danish Contracts Act (Aftaleloven), the Salaried Employees Act (Funktion忙rloven), and other relevant employment laws. It provides a comprehensive framework for documenting the employment relationship, covering mandatory elements required by Danish law such as working conditions, salary, benefits, and notice periods. The document is essential for both protecting employer interests and ensuring employee rights under Danish jurisdiction, while maintaining clarity and transparency in the employment relationship. It should be used whenever hiring employees in Denmark, regardless of whether the employment is covered by a collective agreement.
Suggested Sections

1. Parties: Identification of the employer and employee with full legal names and addresses

2. Background: Brief context of the employment relationship and reference to any preceding agreements or negotiations

3. Definitions: Key terms used throughout the agreement

4. Position and Duties: Job title, role description, and primary responsibilities

5. Commencement and Duration: Start date, probationary period if applicable, and whether the contract is fixed-term or permanent

6. Place of Work: Primary workplace location and any flexibility requirements

7. Working Hours: Standard working hours, flexibility requirements, and overtime arrangements

8. Salary and Benefits: Base salary, payment frequency, pension contributions, and other standard benefits

9. Holidays and Leave: Annual holiday entitlement, holiday pay, and public holidays in accordance with Danish Holiday Act

10. Illness and Absence: Procedures for reporting illness and rules regarding sick pay

11. Confidentiality: Obligations regarding company confidential information

12. Intellectual Property: Ownership of work products and innovations created during employment

13. Data Protection: Employee personal data handling in compliance with GDPR and Danish Data Protection Act

14. Termination: Notice periods and conditions for termination by either party

15. Governing Law: Confirmation of Danish law as governing law and jurisdiction

16. Signatures: Execution section for both parties

Optional Sections

1. Competition and Non-Solicitation: Used when requiring post-employment restrictions on competition and customer/employee solicitation

2. Company Car: Include when providing a company car, detailing terms of use and tax implications

3. Commission Structure: For sales positions or roles with variable compensation

4. International Travel: When the role requires regular international travel

5. Home Working: Include when allowing regular work from home arrangements

6. Training Requirements: For positions requiring specific ongoing training or certifications

7. Share Options: When offering employee share schemes or stock options

8. Collective Agreement Reference: When the employment is covered by a collective agreement

9. Bonus Scheme: When offering performance-based bonuses or other variable compensation

Suggested Schedules

1. Schedule 1 - Job Description: Detailed description of responsibilities and performance expectations

2. Schedule 2 - Compensation Details: Breakdown of salary components, benefits, and any variable compensation

3. Schedule 3 - Company Policies: Key company policies including IT, social media, and code of conduct

4. Schedule 4 - Bonus Scheme Rules: Detailed rules and calculations for any applicable bonus schemes

5. Schedule 5 - Data Privacy Notice: Detailed information about personal data processing

6. Appendix A - Company Car Policy: Terms and conditions for company car usage if applicable

7. Appendix B - Home Working Policy: Guidelines and requirements for working from home if applicable

8. Appendix C - IT Security Policy: Rules and procedures for IT security and acceptable use

Authors

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Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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