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The Danish Labour Market Model

The traditions of the Danish Labour Market Model date back more than 100 years.

  • Wage and work conditions are not regulated by law.
  • The Danish Labour Market Model has been based on a division of labour between the government and the labour market parties (employers and employees).
  • The Danish Labour Market Model means that the wage and work conditions are agreed freely between employers and employees through the industry’s various employers’ organizations and trade unions, for example the construction industry. These agreements are called collective agreements.
  • The government does not intervene into labour market relations as long as the labour market parties are able to solve problems themselves in a responsible manner.
  • If there is no collective agreement in your workplace, there are no rules regarding your minimum wage, pension, holiday pay, working hours, overtime, termination, sick leave rights, time off rights, etc.
  • Without a collective agreement you are vulnerable. For this reason, approximately 80% of the Danish employees are members of a trade union. It is important to remember that the more members a union has, the better working conditions it can negotiate for its members.
  • The Danish Labour Market Model gives ordinary workers a possibility in alliance with their trade union to implement their wishes and expectations in the workplace.
  • The Danish Labour Market Model is based on a mutual respect between the involved parties – employers and employees.
  • The Danish government’s/State's position is that the work carried out in Denmark has to be carried out and rewarded in accordance with applicable wage and work conditions which are negotiated and agreed upon by both parties.
  • The Danish government/State DOES NOT wish that new EU citizens are hired for low-paid second-class jobs with poor working conditions.