Your rights when laid off

When you are laid off, you have rights. Many people don't know exactly what they can demand from their employer. In this guide, we go through the most important rights so you're equipped to ensure you get what you're entitled to.

It can feel overwhelming to think about legal rights when you've just received a termination. But the better you know your rights, the more control you have over the situation. And that can actually help with the feeling of powerlessness.

Notice period: When does your salary stop?

Your notice period depends on your seniority – how long you've been employed. In Denmark, for salaried employees ("funktionærer"), these minimum notice periods apply:

• Under 6 months: 1 month's notice
• 6 months to 3 years: 3 months' notice
• 3-6 years: 4 months' notice
• 6-9 years: 5 months' notice
• Over 9 years: 6 months' notice

Important: Your notice period typically runs from the 1st of the following month. If you're terminated on January 15 with 3 months' notice, your last working day is April 30.

If you're not a salaried employee, other rules apply. Check your collective agreement or employment contract. Many industries have special arrangements.

Gardening leave: What does it mean for you?

Gardening leave means you don't have to show up for work during your notice period, but you still receive salary. That sounds good – and often it is. But there are some things to be aware of:

You can take a new job

When you're on gardening leave, you can generally start a new job even though you're technically still employed by your former employer. However, your old employer can offset their payment if you receive salary from a new job.

Your vacation may be taken

The employer can require you to take vacation during the gardening leave period. However, they must give proper notice (3 months for main vacation, 1 month for remaining vacation in Denmark).

You have obligations

Even on gardening leave, you still have a duty of loyalty. For example, you cannot start with a competing company if you have a non-compete clause. Ask your union if you're in doubt.

Severance pay

If you've been employed for many years, you may be entitled to severance pay. This is an extra amount on top of your normal salary during the notice period.

In Denmark, for salaried employees:

• 12 years with the same employer: 1 month's salary
• 17 years with the same employer: 3 months' salary

Note that this only applies if the employer has terminated you – not if you resign yourself. And it also doesn't apply if you have the right to pension from the employer.

What happens to your vacation?

Unused vacation doesn't disappear when you're terminated. Here's what happens:

Vacation earned in the current vacation year

If you've earned vacation that you haven't used, you have two options:

• Take the vacation during the notice period
• Have it paid out as vacation allowance

Vacation from previous years

Vacation from previous vacation years that you haven't taken must be paid out upon departure. The employer must deposit the amount with the vacation fund.

Pension, health insurance, and other benefits

Many forget to think about the "invisible" benefits. Here's a checklist:

• Pension: Your employer must continue pension contributions throughout the notice period – including during gardening leave.
• Health insurance: Check when it expires. Many policies end upon departure.
• Company car: The agreement about the company car is stated in your contract. During gardening leave, you typically have to return the car.
• Phone and computer: Ask if you can keep them. Many employers let you buy them cheaply.
• Bonuses: If you're entitled to a bonus, it must be paid proportionally.

How to document your rights

Save everything in writing. It's not because you're preparing a lawsuit, but because documentation gives you security and overview.

• Save your termination notice (physical and digital)
• Save all emails from HR and your manager
• Take screenshots of important messages
• Note dates of verbal conversations
• Save your employment contract
• Find your collective agreement if you're covered by one

What if something is wrong?

If you believe your employer is not respecting your rights, you have several options:

1. Contact your union

If you're a member of a union, this is the first step. They can assess your case and help with negotiations. Many unions have lawyers who can assist.

2. Talk to your unemployment fund

Your unemployment fund (A-kasse) can't help with legal questions, but they can often refer you to the right resources. Read more in our guide on unemployment benefits.

3. Seek legal advice

If you're not a union member, you can contact a lawyer. Many offer a free initial consultation.

Common mistakes to avoid

• Signing too quickly: If your employer asks you to sign something, you're allowed to ask for time to read it through. Take it home.
• Assuming everything is non-negotiable: Many employers are willing to negotiate – for example, about gardening leave, extended notice period, or outplacement programs.
• Forgetting non-compete clauses: Check if you've signed a non-compete or customer clause. They can limit where you can work afterwards.
• Not asking about references: Agree with your manager on what they'll say if a new employer calls. It's better to sort this out now.

Practical tips

• Get everything in writing – verbal agreements are hard to prove
• Ask specifically about each point (vacation, pension, benefits)
• Request written confirmation of all agreements
• Call your union, even if you think everything is in order
• Read your employment contract carefully
• Be professional in all communication – it pays off

Try it yourself

Find your employment contract and answer these questions:

• What is your notice period according to the contract?
• Do you have special terms for pension or insurance?
• Are you covered by a collective agreement?
• Have you signed a non-compete or customer clause?

Frequently asked questions

Next steps

Now you know your rights. In the next guide, we go through the practicalities of unemployment benefits – what you need to do to secure your finances in the coming months.

Need help with your CV when you're ready? Read our guide to the CV.