Employment contract – Monthly paid salaried employee

What is an employment contract for a monthly paid salaried employee?

An employment contract for a monthly paid salaried employee is a written contract between the employer and the employee. It describes the terms and conditions that must apply to the employment relationship and thus provides clear guidelines for both the employer and employee.

An employee is paid monthly if he or she is to be paid a fixed monthly salary no matter how many working days there are in the month. If the employee has varying working hours and only needs to be paid for the working hours he or she works, you must use our employment contract for hourly paid employees. Be aware that the employee does not have to be a full-time employee to be paid monthly. A part-time employee can also be paid monthly if he or she is paid a fixed amount per month for his or her work, for example 18.000 DKK for 20 hours of work per week.

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Why do I need to create an employment contract?

According to the Employment Certificate Act (ansættelsesbevisloven), an employer is, as a general rule, obliged to create a written employment contract for an employee within a deadline of seven calendar days after the employment. The only exception is if the employee works three hours or less per week and the employment relationship is of a shorter duration than one month.

When an employer is required to create a written employment contract but does not do so, the employer may be ordered to pay compensation to the employee. It is therefore very important that an employment contract is created for all employees.

In addition, an employment contract provides clarification on legal as well as practical details of the employment relationship. A reasonable employment contract thus creates a better working environment and reduces the risk of future conflicts and misunderstandings between the employer and employee.

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What should an employment contract contain?

Employment contracts can be put together in many different ways. However, there are a number of things which, according to the Employment Certificate Act (ansættelsesbevisloven), must always appear in the contract. These are:

• Name and address of the employer and employee
• The address of the place of work or – if the place of work is not permanent – the address from where the work is mainly performed
• Description of the content of the work or the employee’s position, title, rank or job category.
• Employment start date
• The end date of the employment relationship in case of a fixed-term employment
• Holiday rights
• Duration of the employer’s and employee’s notice of termination
• Salary conditions
• The daily or weekly working hours
• Information on a collective agreement, if the employment is covered by one
• The duration and terms of any probationary period
• The opportunity for training provided by the employer, if such opportunity exists
• The identity of social security institutions and any social security protection provided by the employer
• The identity of the client company for temporary employees

If you have employees who were already employed before the new Employment Certificate Act came into effect on July 1st, 2023, they can request updated employment certificates in accordance with the new rules. We recommend that you update your employment contracts in accordance with the new regulations for new and existing employees.

Example of an employment contract

The following example of an employment contract is a salaried employee contract which meets all the requirements of the Salaried Employees Act (funktionærloven). The employment contract contains provisions regarding job description, working hours, pay conditions, holidays etc. In addition, you can choose whether pension schemes and perks should form part of the salary package.

You must have an employment contract for salaried employees if your employee:

• is an employee and employed in a service position, primarily in the trade and office area, or performs work with warehouse dispatch or technical or clinical assistance services.
• works more than eight hours a week and for a period lasting longer than a month.

Please note that CEO’s are not covered by the Salaried Employees Act, regardless of whether they hold a position that meets the mentioned criteria. A CEO’s contract must therefore be made if the employee is to step in as CEO.

As a salaried employee, the employee obtains certain rights, such as established notice of termination, salary during illness, compensation in the event of unfair dismissal, etc. If the conditions are met, you cannot make a deal or decide as the employer, that the employee should not have salaried employee status.

Is the employment covered by a collective agreement?

Many employments are covered by a collective agreement. A collective agreement in the labor market is an agreement between an employer's organization and an employee's organization. These agreements will stipulate certain requirements for the employment relationship, such as working hours, holidays and other compensation.

Before making an employment contract, it is important that you are aware of whether the employment relationship is covered by a collective agreement or not. For example, this may be the case, if the employer is part of a collective agreement or is a member of an employers' organization. If the employment relationship is covered by a collective agreement, you have to make an employment contract that complies with the relevant collective agreement. You cannot use Legal Desks employment contract for this type of employment, but should contact your employers' organization.

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How do I validate the contract?

Once you have completed the form, you will immediately receive the employment contract – ready to be signed by you and your employee. You can easily and securely sign it digitally with your MitID (read more about how this is done here), so you do not have to print and scan. Once you have both signed, the employment contract is valid and you can safely store the employment contract online in your private Legal Desk archive.

Make your employment contract with Legal Desk

You do not have to fill in any template when you make your employment contract with Legal Desk. All you have to do is answer the questions you are asked in the form and based on your answers, the contract will immediately be generated automatically, so you receive it right away, ready to be signed.

Click ‘Create employment contract now’ below to get started.