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Labor Law in Denmark: What Ghanaian Expats Need to Know

21 Feb 2025


Understanding local labor laws is essential for Ghanaian expats living and working in Denmark to secure a successful and fulfilling professional journey that enables them to support their loved ones back home by making a frequent money transfer from Denmark to Ghana.

Denmark’s employment system balances employer flexibility with robust employee protections. This quick guide explores key aspects of Denmark's labor laws, focusing on what Ghanaian expats need to know to navigate the Danish workplace confidently.

Employment Contracts: Know Your Rights

In Denmark, employers must provide employees with a written employment contract if the job lasts longer than one month and the weekly working hours exceed eight. This contract should detail essential aspects of your employment, including:

  • Job Role and Responsibilities
  • Salary and Payment Terms
  • Working Hours
  • Notice Periods for Termination
  • Additional Benefits or Allowances

Review your contract thoroughly to ensure clarity and fairness. A written agreement safeguards your rights and sets clear expectations between you and your employer.

Standard Working Hours and Overtime

The standard workweek in Denmark is 37 hours, typically spread over five days. Understanding these guidelines will help you maintain a healthy work-life balance, especially when you want a sustainable system that allows you to keep supporting your loved ones with an online money transfer from Denmark to Ghana.

While flexibility is encouraged, the following rules apply:

Maximum Weekly Hours

Employees cannot exceed 48 working hours per week on average over four months.

Daily and Weekly Rest Periods

Workers are entitled to 11 consecutive hours of rest daily and a 24-hour break weekly.

Overtime

Denmark doesn’t have statutory overtime pay regulations. Instead, overtime work is generally compensated, either through extra pay (often at a higher rate) or time off in lieu. 

Read More: 5 Financial Tips for Ghanaians Living in Denmark

Minimum Wage: Negotiated, Not Mandated

Denmark does not have a statutory minimum wage. Instead, wages are determined through collective bargaining agreements negotiated by trade unions and employers. These agreements vary by industry and typically cover the following:

  • Minimum pay levels
  • Working conditions
  • Benefits such as sick pay and leave allowances

Joining a trade union in Denmark can offer significant benefits for Ghanaian expats, including valuable information and protection related to fair pay. This is particularly important for those who send money from Denmark to Ghana to support family and friends.

Leave Entitlements in Denmark

For expats working in Denmark, there are various types of leave entitlements that they can avail.

1. Annual Leave

Employees in Denmark are entitled to five weeks of paid leave annually. The holiday year runs from September 1st to August 31st. Employers and employees often collaborate to schedule leave periods, with three weeks typically taken during the summer months.

2. Maternity and Paternity Leave

Denmark offers generous parental leave policies, which include:

  • Maternity Leave: 14 weeks for mothers, starting four weeks before the expected due date.
  • Paternity Leave: Two weeks for fathers within the first 14 weeks after childbirth.
  • Parental Leave: Parents can share up to 32 weeks of leave.

For expats, confirming eligibility for these benefits based on your employment status and residence is important. 

3. Sick Leave

Employees in Denmark are entitled to paid sick leave from their first day of illness. Employers may cover the first period, and then the municipality may take over. 

As expats, it is essential to remember that the exact process and eligibility for municipal sick pay can be complex and depend on various factors, including employment history and contributions to the social security system. 

For many expats, working in Denmark is a once-in-a-lifetime opportunity. Therefore, being truthful and conscientious regarding these entitlements is crucial, as they allow you to support your family through making a regular online money transfer from Denmark to Ghana.

Work Permits and Legal Employment

As a Ghanaian national, working in Denmark requires appropriate work and residence permits.  Common permit schemes include:

  1. Pay Limit Scheme: For professionals earning a minimum salary threshold.
  2. Positive List Scheme: For occupations facing labor shortages in Denmark.
  3. Green Card Scheme: Though discontinued for new applications, previously issued permits may still be valid under specific terms.

It's important to know that immigration rules and specific requirements can change. It's crucial for individuals to consult the official website of the Danish Immigration Service (Udlændingestyrelsen) for the most up-to-date information, as ensuring legal employment is crucial not only for protecting your rights but also for accessing social benefits like healthcare and unemployment support. 

Taxation for Employees

Working in Denmark obligates you to pay taxes, which fund the country’s robust social welfare programs. Key points include:

  • Progressive Tax Rates: Higher earners pay a larger percentage of their income in taxes.
  • Labor Market Contribution: An 8% deduction is made from gross income before other taxes are applied.
  • Tax Card: Employees must register with the Danish Tax Agency (Skattestyrelsen) to receive a tax card, which determines the correct amount of tax to be withheld.

Failure to comply with tax regulations can result in penalties, so staying informed is essential.

Unemployment Insurance

Unlike in some countries, unemployment insurance (A-kasse) in Denmark is voluntary. A-kasse membership provides financial support during periods of unemployment. To qualify for benefits:

  • You must be a member of an A-kasse fund for at least one year.
  • You must meet specific work and income criteria.

Joining an A-Kasse is highly recommended for expats seeking financial stability during potential job transitions. 

Health and Safety in the Workplace

The Danish Working Environment Act mandates safe and healthy working conditions for all employees. Employers are responsible for:

  • Conducting the workplace risk assessments
  • Providing protective equipment
  • Offering training to mitigate hazards

Employees, in turn, must adhere to the safety protocols to maintain a secure working environment.

Work Smart & Send Smart!

For Ghanaian expats, understanding Denmark’s labor laws is key to a successful and secure work experience. From employment contracts to leave entitlements and workplace safety, being informed helps you navigate the Danish labor market confidently.

If you want to send money online to Ghana from Denmark, ACE Money Transfer ensures your remittances are handled efficiently and securely. With ACE Money Transfer, sending money to Ghana is seamless and reliable, allowing you to focus on your goals in Denmark. Stay compliant, stay informed, and make the most of your time in Denmark.

FAQs

Are there any statutory minimum wages in Denmark?

No, wages are negotiated through collective agreements.

What is the standard workweek in Denmark?

The standard workweek is 37 hours.

How many paid holidays are employees entitled to?

Employees are entitled to five weeks of paid annual leave.

Do expats need a work permit to work in Denmark?

Yes, work permits are required for non-EU nationals.

How can I send money to Ghana from Denmark?

Use ACE Money Transfer for secure, fast, and affordable remittance services.


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