Severance pay

When an employee is dismissed after having been employed for 12 or 17 years, the employee will normally have a claim for payment of one or three months’ salary as severance pay. The amount to be disbursed depends on the employee’s seniority on the last day of employment.

Severance pay is added to the salary payable during the notice period and will be disbursed with the last payment of salary.

Severance pay is payable to salaried employees covered by a collective agreement according to section 2a of the Danish Salaried Employees’ Act (Funktionærloven) and non-salaried employees who have the same right under a collective agreement.

Academics employed in positions that are not salaried positions and employees covered by one of the multi-union collective agreements have the same right to severance pay as salaried employees covered by the Danish Salaried Employees Act.

See section 16(1) of the multi-union collective agreement for the Organisations of Public Employees – Denmark (State) (OAO-S) (OAO-S-fællesoverenskomsten) and of the multi-union collective agreement for the Confederation of Teachers Unions and the Danish Confederation of Public Employees of 2010 (LC/CO10) (LC/CO10-fællesoverenskomsten) and section 20(1) of the collective agreement for state-employed academics (overenskomsten for akademikere i staten).