Funktionærloven Explained

Updated March 2026By exploringdenmark

The Funktionærloven (Salaried Employees Act) is the most important employment law you’ve never heard of. If you work in an office, IT, sales, or management in Denmark, it protects you from day one – notice periods, sick pay, severance, and limits on non-compete clauses. Here’s what it actually says.

Overview

Funktionærloven (literally”the salaried employees act”) has been protecting Danish workers since 1938. It applies automatically to most white-collar employees – you don’t need to opt in, and your employer can’t opt out. If you qualify, you get strong protections that go beyond what most countries offer.

Who does it cover?

You’re a funktionær if your work is primarily:

• Office or administrative work (kontorarbejde)
• Commercial work – buying, selling, client management
• Technical or clinical work – engineering, design, laboratory
• Supervisory work – managing other employees on behalf of the employer

AND you work at least 8 hours per week on average.

In practice, this covers: software developers, project managers, sales staff, accountants, HR professionals, marketing staff, customer service, lab technicians, architects, and most office-based roles. It’s easier to list who it doesn’t cover (see below).

Notice periods

The employer’s notice period increases with your tenure. Your notice to the employer is always 1 month (to the end of a month):

Employed For	Employer Must Give
During prøvetid (first 3 months)	14 days
Up to 5 months	1 month
5 months – 2 years 9 months	3 months
2 years 9 months – 5 years 8 months	4 months
5 years 8 months – 8 years 7 months	5 months
8 years 7 months+	6 months

Notice must be given to expire at the end of a calendar month. Example: fired on March 15 with 3 months’ notice = last day is June 30 (not June 15).

Sick pay

• Full salary from day 1 of illness. No waiting period, no reduced rate.
• No limit on sick days – but the 120-day rule (see below) may apply.
• Doctor’s note: Your employer can request a doctor’s note (lægeerklæring) from day 1 of absence, though most wait until day 3-5.
• Long-term illness: After 30 days of illness, the municipality’s Jobcenter gets involved with a sickness assessment (sygedagpengesag).

Prøvetid (probation)

• Maximum 3 months
• Must be explicitly agreed in writing
• 14-day notice during prøvetid (both parties)
• Notice must be given before the 3-month mark
• Full details: probation guide

Severance pay (fratrædelsesgodtgørelse)

If you’re fired (not if you resign) after long service:

• 12 years of service: 1 month’s salary severance
• 17 years of service: 3 months’ salary severance

This is in addition to the notice period pay. It’s relatively modest compared to some countries, but combined with the long notice period, the total financial cushion is substantial.

The 120-day rule (120-dages reglen)

This is a special clause that must be explicitly included in your contract to apply:

• If you’re sick for 120 days within a 12-month period, the employer can terminate you with only 1 month’s notice (instead of the normal 3-6 months)
• The 120 days must be with pay (days where the employer receives dagpenge refund still count)
• The termination must happen immediately after the 120th sick day – the employer can’t wait
• If this clause is NOT in your contract: It doesn’t apply. The employer must use the normal notice period even for long-term illness.

Non-compete clause limits

Funktionærloven (§ 18a) strictly limits non-compete clauses:

• Must be in writing and provide compensation
• Compensation: Minimum 40% of salary during the restriction period (60% if combined with non-solicitation)
• Duration: Usually max 12 months
• If you’re fired: Non-compete clauses are void if the employer terminates without cause. The employer can’t fire you AND restrict your future employment.
• These protections are automatic under funktionærloven – they apply even if your contract says otherwise.

Pregnancy protection

Under ligebehandlingsloven (Equal Treatment Act, closely linked to funktionærloven), firing a pregnant employee is extremely difficult:

• The employer bears the burden of proof that the dismissal is unrelated to pregnancy
• Firing a pregnant employee is presumed discriminatory unless the employer proves otherwise
• This applies from the moment the employer knows about the pregnancy
• Compensation for wrongful dismissal during pregnancy is typically 6-12 months’ salary

Who funktionærloven doesn’t cover

• Manual workers (håndværkere): Construction workers, warehouse staff, factory workers – covered by collective agreements instead
• Part-time below 8 hours/week: Not covered
• Self-employed / freelancers: Not covered (you’re not an employee)
• Directors / CEOs: Company directors (direktører) with a service contract may be outside funktionærloven – check your specific agreement

If you’re not covered by funktionærloven, your rights come from your collective agreement (overenskomst) or individual contract. These can be better or worse than funktionærloven depending on the agreement.

Beyond funktionærloven

Funktionærloven sets the minimum. Many employers and collective agreements offer better terms:

• Longer notice periods than the minimum
• Higher severance
• 6 weeks holiday instead of 5
• Full parental leave top-up (beyond the legal minimum)
• Better pension contributions

Always check both your contract and any applicable collective agreement (overenskomst) – the most favourable terms apply.

Questions and answers

Am I automatically covered or do I need to claim it?

Automatic. If your job meets the criteria (office/commercial/technical work, 8+ hours/week), funktionærloven applies whether your contract mentions it or not. Your employer can’t waive it.

Can my employer give me worse terms than funktionærloven?

No. Any contract clause that’s less favourable than funktionærloven is void. The law overrides the contract. However, your contract can offer better terms.

I’m not sure if I’m a funktionær. How do I check?

Look at your actual job duties (not your title). If more than 50% of your work is office, commercial, technical, or supervisory, you’re likely a funktionær. If in doubt, ask your union or contact FH.