When you enter the Danish labour market, you will encounter a lot of
specialized words and concepts: What do they all mean? What is
"rådighed"? What are "omsorgsdage" and how many of them do I have? Find
answers in the labour market glossary The glossary is available in several languages - use the top menu to switch between them.
The Unemployment Insurance fund (Arbejdsløshedskasse / A-kasse)
An unemployment insurance fund is a private fund where you can insure yourself against unemployment. As a member of an unemployment insurance fund, you have the possibility of getting unemployment benefit in case of joblessness. In addition to this, membership is a precondition for, for example, qualifying for the voluntary early retirement scheme or "senior ydelse" (a reduced early retirement benefit scheme). Most unemployment insurance funds only take in members from a certain profession or trade, e.g. nurses.
Labour Market Contributions/AM Contributions (Arbejdsmarkedsbidrag)
Your labour market contributions are used to finance unemployment benefits and sickness benefits as well as expenses for activation and training. The contributions amount to 9% of the gross wages. No contribution is deducted from social benefits, transfer payments, pensions and capital income, amongst others
Readiness for work (Arbejdsmarkedsparat)
Meaning that you do not have any problems or issues - with respects to your physical or mental health, or otherwise - that prevent you from taking on a full-time job
Vocational Training Programmes (Arbejdsmarkedsuddannelse - AMU)
Vocational training programmes - AMU - include courses for skilled and unskilled workers. AMU maintains, improves and udgrades your qualifications so that they match the needs of the labour market. The Vocational training programmes include several different types of offers: qualifying education, coherent education programmes, including programmes for refugees and immigrants; study- and training information and guidance, practical testing of different trades in workshops, testing of general professional level or educational preparation for vocational training, as well as the vocational training programmes of the training schools (TAMU)
The social partners (Arbejdsmarkedets parter)
The social partners are the workers' organisations of LO (The Danish Confederation of Trade Unions), FTF (Confederation of Professionals in Denmark) and AC (The Danish Confederation of Professional Associations) and the employers' organisations, such as DA (The Confederation of Danish Employers)
Labour market pension (Arbejdsmarkedspension)
The labour market pension is a pension scheme according to which the retirement pension has been arranged as part of the employment agreement or collective agreement, according to which the employer shall pay a pension contribution or take on a pension obligation. The percentage of the contributions from the employer varies, but typically the employer will pay two thirds and the employee wil pay one third of the total pension contribution
Health and Safety at Work (Arbejdsmiljø)
In Denmark, health and safety at work is regulated by the Working Environment Act. The aim of this act is that working conditions should be fully compatible in terms of health and safety and that these conditions should be improved on a continuous basis so that they correspond to the technological and social development of society. The companies are responsible for solving issues regarding health and safety with guidance from the Occupational Health Service, the social partners and guidance and control from the Danish Working Environment Service
The Labour Market Supplementary Pension Fund (ATP)
The Labour Market Supplementary Pension Fund (ATP) is a superannuation scheme that covers all wage earners. ATP aims to ensure the financial security of its members, primarily in the form of life long retirement pensions as a supplement to the national Danish retirement pension. This scheme covers the majority of workers on the Danish labour market as well as the unemployed, those on cash benefit, rehabilitees and others
Maternity and Paternity leave (Barselsorlov)
With the new rules on paternity/maternity leave, the parents have a total of 52 weeks' leave between them with full benefits. This is 20 weeks longer than under the previous set of rules. The mother of the child is entitled to 14 weeks' maternity leave after the birth of the child. During that same period, the father is entitiled to two weeks' paternity leave. When the child is 14 weeks old, the mother and the father are entitled to a total of 32 weeks' parental leave with full benefits. These weeks can be shared freely between the parents. You may choose to take the leave together, or one after the other
The Occupational Health Service, the OHS (Bedriftssundhedstjenesten, BST)
The OHS consists of a number of independent instutions that companies pay to be members of or possibly decide to run together. The purpose of the OHS is to give the companies the necessary professional support in the occupational health & safety efforts. The aim of the OHS is first and foremost prevention. The OHS guides and helps plan and carry though initiatives that can help prevent occupational health and safety problems
Transportation Allowance (Befordringsgodtgørelse)
You may have some of the costs incurred in connection with transportation covered if your daily transportation distance between home and work, alternatively between course facilities/training centres and home exceed 24 kilometres
Secondary tax card (Bikort)The secondary card is the tax card that does not allow for tax deductions. This card is to be handed in to the employees) that pays you the lowest salary (provided you have more than one employer)
Leave for childcare (Børnepasningsorlov)
The rules on leave for childcare apply to the parents of children that are born after 1 January 2002. These rules also apply for the parents of children that are born between 1 January 2002 and 26 March 2002, if the parents have chosen to come under the old rules on parental and childcare leave
CV
CV stands for "curriculum vitae" and this means life story. A CV can also be called a "data list" and consists of a list in bullet point-form describing training/education, work experience etc. If you are unemployed, you must enter your CV om the database, or CV "bank", on Jobnet no later than one month after registering with the AF
CV-bank
As a job seeker, you must enter your CV into the CV bank of the Jobnet database. Then the employers will be able to see whether you are the one they need. You decide freely whether or not you want to be anonymous in the CV-bank listing
CVVU
The CVVU stands for the Centre for Assessment of Foreign Qualifications and is a centre under the National Danish Education Authority and its purpose is to ease the access to the Danish labour market and provide supplementary training for individuals with foreign qualifications
Voluntary early retirement pension scheme (Efterløn)
The early retirement scheme makes it possible to retire, partially or wholly, from the Danish labour market after the age of 60. The scheme is voluntary and insurance-based. Certain conditions must be met in order to qualify for the early retirement scheme. If you are 60 years of age on 1 July 1999 or later than that, you come under the rules on flexible early retirement. If you have turned 60 before 1 July 1999, you come under the old rules on early retirement pension. If you meet the requirements for going on the early retirement scheme, you have the possibility of getting an early retirement scheme certificate which makes it more attractive to postpone the transition to the early retirement scheme since the certificate ensures that you will be entitled to a number of special rights
Early retirement pension scheme contribution (Efteriønsbidrag)
The early retirement scheme is an insurance-based scheme that you may choose to register for. A precondition for qualifying for the early retirement pay is membership of an unemployment insurance fund for at least 25 years within the past 30 years and payment of early retirement contributions for that period of time. The early retirement contribution is the contribution that you pay every month with the membership fee for the unemployment insurance fund. The monthly contribution amounts to DKK 363 a month for full-time insured members and DKK 242 for the part-time insured members of unemplyement insurance funds in 2003. You are the owner of your early retirement contribution and can, at any given time, have the amount you have saved up transferred to your labour market pension scheme or any other pension scheme. If you are older than 60 years of age, you can have the amount paid out in cash
Closed shop agreement (Eksklusivaftale)
A closed shop agreement is an agreement between the employer and a workers' organisation according to which the employer accepts an obligation only to employ people that are members of a certain trade union, or becomes members of that trade union immediately after having been employed
Basic Adult Education, BAE (Erhvervsrettet grunduddannelse for voksne)Basic Adult Education forms part of the total system of training and education after the compulsory education. The target and level of this programme is the same as the corresponding formally qualifying youth education within a given trade. It is completed by means of the same tests and with the same certificate as the corresponding qualifying youth education and qualifies for the same title as it does. The programme may be completed on a part-time basis
Ethnic consultants (Etniske konsulenter)
The ethnic consultant scheme forms part of a specific programme launched by the AF with the purpose of breaking down barriers that ethnic minorities face on the labour market. Since 1996, all AF regions have employed ethnic consultants as employees with specialised knowledge on ethnic minorities
Trade union (Fagforening)
A trade union sees to its members' interests at the workplace. The trade unions constitute the organisational basic units of the Danish trade union movement, and are also called branches. Normally, these unions cover several workplaces. Amongst others, the trade unions have the purpose of including all workplaces that are covered by collective agreements and to help improve these agreements on a continuous basis to the advantage of the workers. The trade unions are typically organised into trade union confederations. Trade union confederations organise the local trade unions - mainly within the same trade or profession. The personal trade union membership lies with the trade unions. The trade union confederations also coordinate the wage disputes of the trade unions. The confederations accumulate strike funds, support members during approved work stoppages, negotiate collective agreements and interpret agreements for the unions when disputes arise. The trade union confederations are the ones that negotiate and draw up collective insurance schemes for their members
Holiday benefits (Feriedagpenge)
You earn the right to holiday benefits for the periods of time during which you have received benefits from the unemployment insurance fund or from the local authorities in connection with sickness or maternity/paternity leave. If you have been unemployed for one year, you have the rights to 25 days' holiday benefit. If you have been unemployed for a shorter amount of time than that, the holiday benefits will be reduced accordingly. A condition for payment of holiday benefits is that you would have qualified for unemployment benefits on the holidays in question
Holiday Pay (Feriepenge)
All Danish workers have the right to take holidays and receive holiday pay. You earn the right to both holidays and holiday pay from 1 January to 31 December. You can only take your holidays during the holiday year running from 1 May to 30 April (the following year). As a rule, the employer will pay out your holiday pay to the "FerieKonto". In the beginning of March, "FerieKonto" will send you a holiday account certificate. In the holiday account certificate, you will be able to read how many holiday days you have earned and how much money you have at your disposal during your holidays. The holiday pay may consist of pay during your holidays and a holiday allowance, or a 12,5% allowance on the total earned salary for a full calendar year. This money may be paid out one month prior to the first holiday taken.
If you are currently employed, your no longer need your employer's signature on the holiday account certificate. If you are unemployed, you will need to get the holiday account certificate signed by your unemployment insurance fund (a-kasse) or the social services administration in your municipality (kommune). You may take a holiday even though you have not earned holiday pay for 25 days. You have the right to take the number of holidays earned, and supplement them so that the total number of holidays amount to 25 days, but the supplemental holidays do not entitle you to either holiday pay or holiday allowance
Holiday year (Ferieår)
All wage earners have the right to five weeks' vacation. The five weeks vacation must be held some time during the holiday year which runs from 1 May and until 30 April the following year. In so far as possible, the employer should accommodate your request regarding the scheduling of your holidays. However, according to the current rules, the employer always has the last say
Flex jobs (Fleksjob)
If you have a permanently reduced working capacity and have exhausted the opportunities for rehabilitation and for employment according to the social chapters, a flex job might be a solution. A flex job entails working in a sheltered job which has been organised according to your specific needs. This might be in the form of reduced hours or flexible work hours, periods of absence or more breaks for resting. Flex jobs can be established at both private and public workplaces. Wages and working conditions are agreed upon between you, the employer and the trade union. The employer will receive a wage subsidy that varies according to how much your working capacity is reduced. The local authorities administer the schemes and do the following up
Deductions (Fradrag)
The non-taxable income
Voluntary Early Retirement (Førtidspension)
On 1 January, the reform of the voluntary early retirement scheme will step into force. The main principle underlying the reform is that you can only be awarded the voluntary early retirement if you are unfit to re-enter the labour market. In this connection, your working capacity will be described and assessed
Job plan
The individual job plan is prepared by yourself and the AF or together with the local authorities and it is a plan for preparing your possibilities of finding normal employment. The plan establishes what your employment goals are and which activation offers you need in order to achieve this goal. The AF or the local authorities must take as their point of departure your wishes and preconditions as well as the needs of the labour market
Tax rate and deduction card
(Hovedkort)
The tax card which states your rate of deduction. This card must be handed in to the employer which pays you the highest salary
Central organisation (Hovedorganisation)
The trade union branches come together in national unions which affiliate into a few central organisations. The central organisations on the worker-side are LO, FTF and AC and the central organisations on the employerside are DA, SALA and FA, The central organisations work for their members' interests vis-å-vis the political system. The central organisations have developed from negotiation bodies into being service organisations - to a higher extent
Job centres
Job centre is the term used to describe most of AF's offices. Here, you can go in and check the available positions on the internet, on job boxes and in the newspapers there, and you can find material on courses and training possibilities
The Employment Service (Jobformidling)
The Public Employment Service, the AF, tells you of available jobs in various companies. You may be unemployed or you may already have a job but seek a new one. The companies are the ones that determine who to employ
Job rotation
The AF makes job rotation contracts with companies that wish to upgrade a group of employees. While these employees are away on training, people who are otherwise unemployed will fill their positions temporarily
Job Seeking (Jobsøgning)
The AF offers job seeking courses. Here, you will get ideas for improving your applications, for seeking jobs on the internet and for preparing for an interview. Employees at the AF job centres will help go through your application with you and give you good tips for improvements
Traineeship (Virksomhedspraktik)
Traineeship is a new scheme which gives unemployed persons with specific needs for upgrading the possibility for traineeship with subsidised wages at a workplace for a period of 4 to 26 weeks
Quarantine (Karantæne)
If you quit your job or refuse to take work, you risk being quarantined. This means that you lose the right to receive unemployment benefit for a certain amount of time. If you refuse to take a job that has been assigned to you, or if, within a week, you cease to show up at a workplace that has been assigned or offered to you, you be quarantined for a week during which you will not be receiving unemployment benefit. If you resign from your job or job offer, you will have five week quarantine without unemployment benefit. If this repeats twice within 12 months, you will lose the right to receive unemployment benefit. There are special rules for young people that are covered by the specific effort for young people below the age of 25 and for jobless persons during the activation period. You have the right to resign from your work without being quarantined if you have a valid reason for doing so
Contact Scheme (Kontaktforløb)
If you are unemployed, you must, no later than one month after registering, participate during an interview with the AF about your CV and your job seeking efforts. If you are receiving the cash benefit or an introductory benefit, the interview with take place at the local authorities' offices. After the first interview, you will be in touch with the AF every third month, as a minimum. If you are a recipient of the cash benefit or the introductory benefit, you will arrange for the subsequent contact together with the local authorities
Cash Benefit (Kontanthjælp)
If you cannot provide for you or your family, you may receive the cash benefit. You may receive cash benefit in case of unemployment, sickness, pregnancy and birth, separation and divorce, for example. A precondition for receiving the cash benefit is that you do not have any income or any means that could be used for supporting you. In this connection, spouses have a mutual obligation to maintain one another. Furthermore, there is a requirement for you to make use of your possibilities for finding work, and it is therefore not possible to get the cash benefit if you reject offers for work, activation or other arrangements to find work for you
Unemployment period (Ledighedsperiode)
In January 2003, new rules on unemployment benefit stepped into force. Among other things, this entailed that the concepts of benefit periods and activation periods are no longer valid. The new definitions are 1st unemployment period and 2nd unemployment period. The 1st unemployment period includes the first year of unemployment for the jobless between the ages 25 and 59 years, and the first six months for the jobless below the age of 25 and those between the ages of 60 and 64. Additional unemployment falls under the 2nd unemployment period
Equal pay (Lige løn)
The Danish Equal Remuneration Act aims to ensure that men and women receive equal pay for equal work. You cannot be dismissed for demanding equal pay. If this act is violated, you may be awarded a compensation or demand to be reinstated in your position
Salary statement (Lønseddel)
Every time you receive your salary, unemployment benefit, cash benefit etc. you will receive a statement for this amount. A salary statement may be set up in many different ways, but it will largely always contain the same information: How much you have to pay in taxes and to various pension funds, etc. and how much your salary payable will amount to after these items have been deducted
Minimum wage (Minsteløn)
There is no statutory minimum wage that covers the entire labour market. But the individual collective agreement can stipulate a minimum wage for a given trade or profession
Compassionate leave (Omsorgsdage)
There are different rules on compassionate leave for public and private sector employees. Compassionate leave means that parents have the right to take time off work to care for their children when they are ill. The precise rules for compassionate leave are defined in the collective agreements
If you are employed in the public sector, you have the right to ten days of compassionate leave per child born or adopted after 1 April 1997. If both parents work in the public sector, both are allowed ten days of compassionate leave, but they cannot take these ten days simultaneously. No reason is required for taking compassionate leave and the employer should accept the request for compassionate leave unless it is incompatible with work. The private sector has also introduced compassionate leave through a number of collective agreements
Leave schemes (Orlovsordninger)
The rules on childcare leave and training leave have been abolished. However, the rules on childcare leave are still valid for parents of children born before 1 January 2002. This means that these parents can still apply for childcare leave. If you have commenced a training leave before 1 January 2002 or have been granted permission for taking a training leave before that date, you may still take the training leave
Overtime work (Overarbejde)
Overtime work is the hours worked in addition to the agreed daily work hours. The employer decides whether the overtime work should be paid out through overtime pay or whether it should be rewarded by means of lieu days. The collective agreements lay down how much more you will be paid for overtime work. The overtime pay increases proportionately with the latenes of the overtime work performed
Collective agreement (Overenskomst)
The collective agreements are a very important element in the work of the social partners. They influence more than 90% of the labour market. The conditions for employment and wages are laid down in the collective agreements which primarily deal with agreements on wages and working hours. In addition to this, they stipulate conditions regarding holidays, national holidays, sickness, maternity leave, labour market pension schemes, termination and other things. The actual wage negotiations take place at an even more decentralised level - often at the company level
Pension schemes
You may retire from the labour market in different ways. Your options for income from pensions include: ATP (The Labour Market Supplementary Pension), labour market pension, voluntary early retirement pay, transitional benefit or a private pension scheme
Rehabilitation (Revalidering)
The local authorities are responsible for providing assistance if you have a reduced working capacity so that you become able to support yourself. The conditions for this rehabilitation assistance is, that it must be realistic to assume that you will one day be able to support yourself and that your professional activities are not sufficient to bring you in contact with or back to a career. The point of departure for rehabilitation efforts is therefore, to qualify you for taking on a normal job. The working capacity criteria take their point of departure in your skills. The most important element in this assessment is what you can or wish to learn. The assessment must be forward-looking and focus on your possibilities despite your reduced working capacity. In order to be self-supportive, you and the local authorities set up an action plan. During the training, you will receive regular rehabilitation benefits
Availability for work (Rådighed)
When you receive unemployment benefit or cash benefit, you are under an obligation to be available for work. Among other things, this means that you must be able to take on work with a days' notice
Self-elected training (Selvvalgt uddannelse)
When you are unemployed, you have the possibility of chosing programmes of up to six weeks of training. Read more about the self-elected training at www.vidar.dk (only in Danish) and get an overview of the various adult education offers at the home page of the Ministry of Education at www.vok-senuddannelse.dk
Tax card (Skattekort)
The tax card states how much you must
pay in taxes
Registration with the AF
Once you become unemployed, you must register with the AF on the first day of unemployment. Registration taks place at the AF. Registration with the AF is a precondition for receiving unemployment benefit. Recipients of cash benefit that are available for work must also be registered with the AF. From September 2002, it has been made possible for unemployed persons to register via their unemployment insurance fund
Training allowance (Uddannelsesgodtgørelse)
If you qualify for unemployment benefit, you may receive the training allowance if you choose to embark on a training programme. If you are more than 25 years old, the training allowance will be equivalent to the amount that you would otherwise receive as unemployment benefit. If you are under 25 years of age, the training allowance will be equivalent to half of the amount that you would otherwise receive if you were qualified for the highest rate of unemployment benefit. Any pay you might receive during your training or any supplementary income that you may earn will be deducted from the training allowance, if you are already receiving SU, the State Educational Support, you do not qualify for the training allowance
Guidance Interview (Vejledningssamtale)
If you need advice on your possibilities for finding employment or embarking on a training programme, you may have an interview with a vocational occupation guide. These interviews take place at the AF
VEU Allowance (VEU-godtgørelse)
The VEU (Adult Education and Continuing Training) Allowance ensures the financial foundation for adults with little education or training so that they can participate in vocational adult education and continuing training including training at the level of vocational training. You may be awarded an allowance for loss of income or work opportunities, contributions for coverage of transportation expenses, contributions to board and lodging and stays on boarding homes. In order to qualify for this allowance or these contributions, you must be in employment or be self-employed. Unemployed persons may also receive the VEU Allowance during the benefit period for a maximum duration of six weeks. The VEU Allowance corresponds to the maximum unemployment benefit rate and is reduced proportionately in case of part-time training.
