What is the Danish Labour Market Model?

he Danish Labour Market Model is a designation used to describe the unique way in which the Danish labour market is organised. It is a model that is based on collective agreements entered between organised employers and organised employees with which the Danish Government generally does not interfere.

Why is it called the Danish Labour Market Model?

The Danish Labour Market Model originates from the so-called September Compromise (Septemberforliget) of 1899. In the September Compromise, it was decided that the employers have the right to lead and distribute work, while the trade unions have the right to negotiate the pay and working conditions of the employees.

What is flex-security

The Danish labour market is highly flexible, and it is relatively easy for employers to hire and terminate employees as needed. Security is made up of the Danish unemployment benefit system, which ensures that people have an income in case of unemployment.

Is there a minimum pay in Denmark?

No. Unlike Germany and many other countries, there is no statutory minimum pay in Denmark.

What are tripartite negotiations?

Tripartite negotiations refer to the negotiations between three parties: the Government, the labour organisations and the employer organisations. Negotiations may take place at many levels and may be of a formal or informal nature. Negotiations may concern a single theme and transversal political issues affecting the Danish labour market.