What must an employment contract contain?
Short answer: An employment contract must contain the terms required by the Danish Employment Certificate Act, and it must be in writing and handed over no later than one month after employment starts. Do it early, so it does not become a discussion later.
Many companies start with an employment contract downloaded for free online. It seems fine, until it is tested – typically on the day an employee resigns or a conflict arises. That is when the gaps appear. And by then it is too late to fix them.
The legal minimum
An employment contract must as a minimum contain information on pay, working hours, notice period, job function and place of work. That sounds like a short list, but each point must be worded correctly to hold up – not just be mentioned.
What is often missing from a free template
We once had an IT company that used a free template for all its employment contracts. When an employee resigned, the company discovered that the contract was missing key clauses. We reviewed and updated every contract in the company – it took two days and cost far less than being left with a dispute without proper documentation.
A template cannot account for your industry, your collective agreement situation or the special circumstances that arise along the way. It only covers the general – and that is exactly where it often fails when it matters.
Why it is worth having the contract reviewed before something goes wrong
Many of the companies we speak with have never had their contracts reviewed since they were made. This is rarely deliberate neglect – it is just put aside, because there has been no reason to look at it again. But a contract that has not been updated for several years may no longer follow the legislation or collective agreements that apply today.
What about dismissal?
The formal requirements also apply when an employment relationship must end – notice period, documentation and, in some cases, compensation must be handled correctly. This is just as important to have under control as the contract itself, because this is often where a deficient contract really becomes a problem.
Probation, notice and periods of notice
The contract should describe how long the probation period is, and which notice applies during probation and after it. The notice period depends on the length of employment and on any collective agreements, so it is not something you should guess. Write it out concretely in the contract, and refer to the collective agreement if it applies.
Many free templates contain a standard wording about notice that does not fit your company. It is one of the things that typically becomes a problem first when someone has to be dismissed.
Part-time, students and variable hours
Not all employees have the same type of employment. Part-time staff, students and employees with varying hours should have a contract that describes how hours are distributed, when they are notified of shifts, and how pay and holiday are calculated. Without that description, every payroll run becomes a discussion about what was actually agreed.
How to update the contract when something changes
When pay, tasks or working hours change, the contract must be updated in writing. Make a short amendment that describes what is changing and when it takes effect. Keep it together with the original contract, so you can always see what applied at any given time.
The change should not only be in the payroll system. It must also be on paper, so that both you and the employee can refer to it.
Frequently asked questions
Must an employment contract be in writing?
Yes. The employment certificate must be in writing. An oral agreement can be valid, but it is difficult to document the content if a disagreement arises later. The terms should therefore always be provided in writing.
When must the employment certificate be provided?
No later than one month after the start of employment. We recommend that the contract is ready before the employee starts.
What happens if the terms change without the contract being updated?
The written documentation no longer matches reality. Material changes must be notified in writing no later than one month after they take effect.
Can I use a free template?
Yes, but check that it covers the points that apply to your company, especially collective agreement, probation period and holiday. You will find an overview of HR and contracts on our HR page.