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Employment Contracts and Restrictive Covenants

Advice on all aspects of employment contracts and terms of employment, from drafting to adaptation.

The employment contract constitutes the legal foundation of any employment relationship and sets out the rights, obligations, and framework for the cooperation between employer and employee. A well-drafted contract is essential to create clarity, predictability, and security for both parties – and to prevent disputes during and after the employment.

We advise on all aspects of employment contracts and terms of employment. Our advice includes both the drafting of new contracts and the review or adjustment of existing agreements in light of applicable legislation, case law, and commercial needs.

Under the Danish Employment Certificate Act, all material terms of the employment relationship must be set out in writing, and recent case law has imposed stricter requirements regarding content, clarity, and timeliness. Deficient or unclear contracts may give rise to claims for compensation and create uncertainty regarding rights and obligations.

We therefore assist in ensuring that contracts comply with the applicable requirements while also being tailored to the specific position and organisation.

Our advice includes, among other things

  • Drafting and review of employment contracts for all employee groups, including salaried employees, hourly paid employees, managers, and directors

  • Assessment and adjustment of contracts in connection with changed terms, promotions, or restructurings

  • Advice on forms of employment, including fixed-term employment, part-time employment, project-based employment, and flexible forms of employment

  • Legal assessment of probationary periods, notice periods, and termination terms

  • Advice on restrictive covenants, including the use of non-compete, non-solicitation, and employee non-solicitation clauses, as well as compliance with the rules on compensation and validity

  • Incentive schemes, including bonus agreements, commission, employee benefits, and flexible remuneration packages

We also assist in connection with negotiations on contractual terms – both upon entry into, amendment of, and termination of the employment relationship – and ensure that the agreements reflect the parties’ actual intentions while also being legally robust.

Questions & answers

Questions about employment contracts

Which terms should an employment contract make clear?

The role, workplace, pay, working hours and termination terms should be clear. Requirements also depend on the employment relationship and any applicable collective agreement. Probation and restrictive clauses warrant a separate assessment.

Can you review a contract before it is signed?

Yes. We can review a draft for the business or prospective employee. Tell us what has already been agreed, which terms you are unsure about and when a response is needed.

Is one standard contract enough for every employee?

A template should be adapted to the employment concerned. Duties, working hours, bonuses, collective agreements and cross-border work may call for different terms. We can help adapt your business’s template.

These answers provide general information. Advice on your matter requires an assessment of your specific circumstances.

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