Danish Labor Law 101 Part 3: When Work Ends

Danish employment rates may have hit record highs, but recent layoffs at Danske Bank and Nordea, logistics giant Maersk, and big pharma darling Novo Nordisk serve as a stark reminder that contingency plans are non-negotiable. This rings especially true for internationals, many of whom rely on employment to sustain residency in Denmark.

By: Val Khorishko

Click here for Part 1: Employment Essentials and here for Part 2: When Work Gets Personal

The Case for A-kasse

A nuance of the Danish Model that often comes as a surprise to internationals: despite the hefty social safety net, there is no universal state-backed unemployment coverage. While Denmark does have “kontanthjælp”, this is not typically something you can count on unless you have less than 10,000 DKK in personal wealth and meet a number of very specific requirements. Kontanthjælp is seen as a last resort for Danish residents and, depending on your municipality, how you “earn” your benefits (community service, physical attendance, courses) can vary. Therefore, being employed in Denmark doesn’t automatically guarantee unemployment benefits. Instead, workers are individually responsible for their own voluntary contributions to private unemployment funds (“A-kasse”), with about 83% of the Danish workforce enrolled. Unemployment benefits (dagpenge) are funded by the 8% labor market contribution tax, together with A-kasse membership fees.

“A useful rule of thumb: think of the union as protecting your rights while you're employed, and the A-kasse as protecting your income and supporting your career if you become unemployed,” says Charlotte Klovborg, Head of Legal, Lederne A-kasse. The Danish idiom at gå med livrem og seler — “wearing both a belt and suspenders” — embodies this “dual protection” attitude.

Akademikernes A-Kasse elaborates further: “A trade union can help you with the legal aspects of working conditions and employment contracts, whereas a membership with an unemployment insurance fund ensures an economic safety net, in case you get fired from – or quit – your job.”

“If you are only a member of a union and not an A-kasse, you may still receive workplace-related support, but you will not be eligible for dagpenge if you lose your job,” adds Klovborg.

There are currently 21 different A-kasse funds in Denmark. Nearly half of these are interdisciplinary and accept members across a wide gamut of occupations — including self-employed professionals. According to Akademikernes A-kasse, “An unemployment insurance fund that knows about your area of work and expertise will be able to advise and guide you, both in case you need to find a new job after being fired, and if you wish to get advice on a career change or finding a new job while still employed.”

A-Kasse fees are tax-deductible, and waived entirely for up to five years after graduation if you enroll as a student and meet specific criteria (listed here). Klovborg notes that there may be some discrepancy in price from one fund to another; “The basic unemployment insurance rules are largely the same across all A-kasser because they are governed by national legislation. The biggest differences are often in the additional services they offer.”

Depending on the provider, your fees can grant access to career counselling, CV and application feedback tailored to the Danish labour market, help with interview preparation, networking events, job fairs courses and skills development programmes, as well as workshops on Danish workplace culture. “For many newcomers, these services can be just as valuable as the financial safety net, particularly when navigating a labour market that may operate differently from their home country,” Klovborg adds.

According to her, a few other factors to consider when choosing the right A-kasse include language support and availability of guidance in English, as well as the ease of contacting advisors, online services, and response times.

Nuances for Internationals

According to Klovborg, while EU/EEA citizens can join an A-kasse and remain eligible under the same conditions as Danish citizens, non-EU/EEA workers should pay closer attention to the fine print. If your right to stay in Denmark is tied to your job, specific types of permits can limit or delay your access to benefits. “Non-EU/EEA nationals should always check the specific conditions of their residence and work permit before relying on A-kasse coverage,” advises Klovborg.

The same rules apply for internationals on the researcher/high-income employee tax scheme under §48E (otherwise known as the Danish expat tax scheme): “Being on the expat tax scheme does not in itself restrict A-kasse membership, but immigration and residence rules may affect the practical ability to receive unemployment benefits if employment ends,” says Klovborg. “Membership of an A-kasse is governed by the ordinary unemployment insurance rules, not by the tax scheme itself.”

Navigating a Termination Notice

In Denmark, the legal conditions of termination are governed either by The Salaried Employees Act (funktionærloven) or a collective agreement. You can find more details on tenure-based termination periods here.

If you’ve received a termination notice, general union advice is to sign for receipt only (as in, to acknowledge you’ve received wit the notice hout agreeing to any termination conditions) and then get in touch with your union as soon as possible to guarantee your rights are respected. Nanna Højlund, vice president of the Danish Trade Union Confederation (FH), says unions can provide indispensable support during termination negotiations: “They can raise claims regarding the correct notice period and, where relevant, assess whether compensation for unfair dismissal is warranted. In addition, trade unions can negotiate severance terms with the employer.” According to her, some workplaces even have union representatives present on-site, so it’s possible to get assistance in person.

Many internationals can end up in a precarious position if their right to reside in Denmark is tied to their employment. According to the Danish Agency for International Recruitment and Integration (otherwise known as SIRI), if you’ve been laid off, there are several work permit tracks that make you eligible to apply for a jobseeker permit. More information on conditions for jobseeker permits is available here.

Weathering the Storm: Dagpenge Numbers and Eligibility

Dagpenge cannot exceed 90% of your previous salary and, in 2026, maxes out at the established rate of DKK 22,041 per month. However, A-kasser funds also offer an optional add-on salary insurance that ensures higher salary protection (for example, Akademikerne, Lederne, A&Til).

Paying into an unemployment insurance fund alone isn’t enough. According to Klovborg and Akademikerne, the most common reason for missing out on dagpenge is not meeting A-kasse membership requirements long enough before unemployment. You can find the full list of criteria here. In a nutshell, these include membership duration before unemployment, meeting specific income requirements over a period of time and being engaged in ongoing active employment search.

Klovborg notes that resigning without a valid reason can mean a three-week waiting period before benefits kick in. During this time, you still need to be registered as a jobseeker, available for work and actively applying. Valid reasons can include serious health issues, harassment, unsafe working conditions, or significant changes to employment terms.

You can find a full list of valid reasons here.

“Because the rules can be complex and highly dependent on individual circumstances, it's always advisable to contact your A-kasse before resigning if possible,” suggests Klovborg.

To apply for your unemployment benefit, you need to register as an unemployed jobseeker on Jobnet.dk, and contact your A-kasse to fill out the dagpenge application.