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A Denmark EOR enables you to hire specialist employees in Denmark quickly and in full compliance with the law. Read our in-depth guide to learn how a Denmark EOR works and which Denmark EOR is best for your business.
With a thriving Northern European economy, Denmark is a popular destination for businesses looking to expand into Europe or hire specialist talent.
An Employer of Record (EOR) allows you to hire employees in Denmark without setting up an entity or subsidiary there. The Denmark EOR is responsible for hiring, payroll management, benefits administration, and ensuring compliance with local labor laws. This leaves you the freedom to focus on your core business activities.
| Horizons | With Horizons, clients companies can easily hire employees in Denmark, in full compliance with the law. With in-house recruitment and visa support, Horizons offers a complete Denmark hiring solution. |
| Swapp Agency | Swapp Agency is a leading EOR, specializing in employment support in the Nordic countries. In addition to EOR, they provide relocation and co-working support, ensuring you have everything you need to set up your Denmark team. |
| Remote | Remote is a respected global Employer of Record, hiring employees in more than 100 countries, including Denmark. They also offer a jobs/talent acquisition website known as Remote Talent. |
Key facts for anyone thinking of hiring in Denmark include:
Why would a company use an EOR solution, rather than setting up their own subsidiary in Denmark?
As in any country, hiring in Denmark is affected by local employment laws and attitudes.
A European concept, sometimes called “flexicurity,” characterizes employment in Denmark — emphasizing flexibility with job security. Furthermore, the Danish labor force comprises nearly 50% of the population, a higher percentage than in many other countries.
Danish employees have access to welfare programs and benefits in case of unemployment, making it an attractive destination for workers and businesses.
To successfully navigate the Danish job market, it’s essential to be aware of key employment laws, including:
Understanding work hours, holidays, and leave policies is crucial for both employers and employees:
Denmark’s well-educated workforce includes a substantial percentage of the population, making various employment types available. Full-time employees receive comprehensive benefits under the Danish Salaried Employees Act, but part-time, temporary, and agency workers are also recognized and entitled to similar benefits. The distinction among employment types is relatively minimal in Danish law.
Employees in Denmark have the right to negotiate their compensation, a standard step in the recruitment process. Negotiations are common, especially for higher-level positions where candidates’ preferences often influence the final compensation package.
In Denmark, there are no specific rules regarding the duration of probation, which is typically defined in employment contracts and rarely exceeds six months. Termination in Denmark is relatively straightforward compared to other European countries. Unless protected by a fair dismissal clause or the Salaried Employees Act, employees can be terminated without notifying a trade union or employment agency. Specific protections apply to employees on parental leave, minority groups, and union representatives.
Setting up payroll in Denmark must comply with local laws and include required benefits and provisions. Taxation is a critical aspect, with specific regulations to follow:
Recruitment in Denmark follows a process that has become increasingly standardized across countries, thanks to the Internet and online job portals. Here’s a step-by-step overview of hiring in Denmark:
Hiring candidates online through job portals and social media is common in Denmark, but the sheer volume of applicants can overwhelm HR teams. This is where an EOR partner becomes invaluable, handling hiring, contract development, onboarding, and other HR functions.
Those who need a more substantial presence in Denmark, might consider setting up a local entity or subsidiary.
Setting up a subsidiary in Denmark is relatively straightforward, involving the following steps:
Note, however, that this process can be much more expensive than using an EOR, and requires your ongoing management of payroll and compliance.
Expanding your business into Denmark offers incredible opportunities but comes with complex labor laws, taxation, and compliance requirements. An Employer of Record in Denmark can be your trusted partner, simplifying the process, ensuring compliance, and allowing you to focus on your core business activities.
Employing an EOR streamlines your expansion process, provides local expertise, and allows you to focus on your core business while ensuring compliance.
