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Employer of Record (EOR) in Denmark

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409 Views 0 Comments January 12, 2024

Employer of Record Denmark

GTS Nordic offers an Employer of Record (EOR) solution in Denmark that enables companies to expand their business without setting up a legal entity, and independent contractors to fulfil their assignment compliantly. As a legal employer, GTS Nordic manages relocation and onboarding of remote employees and contractors, their payroll, benefits, taxes and more. With our extensive international and Nordic network, we help businesses simplify their global expansion process. This article discusses everything you need to know before working in Denmark and how GTS Nordic can help with the process.




Danish Krone (DKK)



Working in Denmark

Denmark’s employment structure is based on the European concept of flexicurity, which combines flexibility with job security. Denmark’s labor force accounts for approximately half of the population, and every young person attends university as education is free for Danish citizens. Remote work has been popular in Denmark long before it was introduced in other parts of the world, and as far as global employment goes, it is considered attractive to work in Denmark.

Contractors vs Full-Time Employees

Denmark’s labor and employment laws recognize all types of employment. The Danish Salaried Employees Act states that full-time workers who work the appropriate number of hours for at least a month are entitled to a contract that extends benefits and provisions to them. Independent contractors working temporary assignments in Denmark may or may not have the same provisional benefits, but they can potentially be covered by lucrative tax schemes instead, such as the Expat Taxation Scheme (§48E).

Our Danish Employer of Record solution is built on our three core values:
trust, service & compliance…

— Poul Lund Christensen, Managing Director

Negotiating Terms’ Scope

Employees at any level in Denmark have the ability to negotiate their pay with their employers. Candidates must declare their preferences for salary and perks in the final step of the recruitment process. Companies take into account what candidates prefer, especially when hiring for higher-level roles. GTS Nordic’s EOR service includes examining your contract to make sure it is compliant and within the scope of your assignment in Denmark.

Danish Employment

Internet connections and online employment have made the process of recruiting new applicants in Denmark similar to other countries. Many job portals and social media websites assist businesses in finding candidates, and global HR teams can sift through candidate libraries to find the best fit. Once the job description is complete, it is posted on the career page of the firm’s website, as well as on job boards and professional websites such as LinkedIn. Professional Employment Organizations (PEO) or staffing agencies will usually conduct a written test as the first phase if the number of shortlisted candidates is large. GTS Nordic is an experienced legal employer in Denmark, offering streamlined PEO services tailored for Danish employment.

Employer of Record (EOR) Partner in Denmark

GTS Nordic offers an EOR solution that can help businesses simplify their global expansion process. We can assist in contract development, onboarding, and other hiring-related processes. Having an EOR partner like GTS Nordic is essential for businesses looking to expand to Denmark.

Probation & Termination in Denmark

In Denmark, the probationary period is usually specified in the employment contract negotiated between the employer and employee. Although there are no clear guidelines on how long the probation period should last, it usually does not exceed six months. Compared to other European Union countries, Denmark makes it relatively easy for employers to terminate employees. Employers are not obligated to notify a trade union or employment agency in case of termination. However, employees on parental leave, members of specific minority groups and communities, or elected representatives of a union have additional safeguards against firing. GTS Nordic, as an Employer of Record in Denmark, can provide expert advice and guidance on Denmark’s probation and termination rules.

“I want to thank you for the impressive service and attention to my needs during the 3 plus years working in Denmark, the attention to my documents and scheduling of the appointments was very good and kept things on track for my work permit…

— Rodney Grubham, TotalEnergies

EOR Solution for Business Expanding in Denmark

Expanding your business in Denmark comes with complexities. An Employer of Record (EOR) solution simplifies the process, ensuring compliance with local employment laws, streamlining HR and payroll, and enabling a smooth entry into the Danish market. Your business can benefit from the GTS Nordics expertise and focus on core business functions while ensuirng a flexible workforce without establishing a legal entity. With an EOR solution, you can navigate Danish market challenges and maximize the chance of your business suceeding in Denmark.

Work permits in Denmark

Non-EU citizens, need to apply for a work permit to work in Denmark. After receiving a job offer, you must apply for a work permit. For other types of employment, work permits are granted for three months at a time. Speak to GTS Nordic, the preferred Employer of Record Denmark, to start your expansion journey and learn more about work permits in Denmark.

Type of Work Permit Scheme Details
Positive List Scheme For professions with a shortage of qualified professionals in Denmark.
Pay Limit Scheme For individuals with a job offer above a certain salary threshold.
Fast-Track Scheme For certified companies to bring foreign employees quickly.
Researcher Scheme For research activities with a Danish institution.
Trainee Scheme For training in fields of particular interest to Denmark.

Danish Payroll & Taxes

Complying with local regulations is critical when setting up payroll in Denmark, which includes offering payroll benefits and adhering to the clauses required by law. Taxes are also strictly enforced in Denmark, and an Employer of Record like GTS Nordic can help with payroll setup and ensuring that you pay your fair amount of taxes. Performance-based bonuses are gaining popularity in Denmark, although the country does not have a law mandating the payment of a 13th wage. To learn more about the Danish payroll and taxation system, schedule a call with GTS Nordic.

How to Set Up a Subsidiary in Denmark

Setting up a subsidiary in Denmark is quick and easy if you follow the regulations. The first step is deciding whether to establish a partnership, fully private corporation, or publicly traded company. Next, choose a distinctive name for your subsidiary and submit a company registration form to the Danish Business Authority, which will provide you with a CVR number. If you plan to sell goods or services generating more than a particular amount of revenue, you must register for VAT. You can begin hiring in Denmark after completing these steps. Get in touch with GTS Nordic professionals to establish a subsidiary in Denmark and find a custom solution for your growth.

PEO (Professional Employment Organization) in Denmark

In Denmark, hiring and managing employees can be a complicated and time-consuming task. That’s why partnering with a reliable PEO (Professional Employment Organization) is crucial for businesses looking to expand their operations in the country. A EOR like GTS Nordic can assist you in navigating the complexities of Danish labor laws and regulations, handling compliance, and ensuring that your HR practices are in line with local legal requirements. There is a difference between a PEO and an EOR, but technically GTS Nordic can be considered both and offers services within.

EOR Solution vs PEO

Although often used interchangeably, there is a difference between an EOR solution and a Professional Employment Organization (PEO). With a PEO, your company’s employees are on your payroll, and you are responsible for handling all HR-related issues. An EOR partner, on the other hand, acts as the legal employer of your workers, handling payroll, benefits, taxes, and other administrative tasks on your behalf. GTS Nordic’s solutions are flexible and can be tailored to fit your needs – contact us today for a free quote.

Go further…

As Nordic Employment experts we also offer Employer of Record solutions in Sweden, Finland and Norway. Contact us today for a free quote.

Partner with GTS Nordic

With GTS Nordic’s EOR solution, you can rely on our team of professionals to handle all compliance- and HR-related duties, from onboarding to termination. We have extensive knowledge of Danish labor and employment legislation and can ensure that your business is always in compliance with local laws and regulations. If you are looking for a dependable partner that can take care of your HR needs, get in touch with GTS Nordic today. Our EOR solution can help give your business the much-needed push to succeed with your business in Denmark.

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Emil Otte Brok

Illuminating the Nordic employment landscape one article at a time.

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