Fixed-term employment contract
(hereinafter jointly referred to as the ”Parties” and separately as the ”Party” as shown by the context)
INTRODUCTION
This employment agreement (hereinafter referred to as the “Agreement”) supersedes and extinguishes all previous agreements relating to the employment of the Employee and constitutes the whole and only agreement between the Parties relating to the subject matter hereof;
By entering into this Agreement, each Party acknowledges that it is not relying upon any previous statement, which is not reflected in this Agreement;
The Employee agrees that all company communication, including instructions and notices under this Agreement can be made in English and that no translation into Danish is needed to make such communication valid and binding.
1. COMMENCEMENT DATE AND JOB TITLE
1.1 Effective as from [date], the Employee shall be employed with the Company as [job title]. The employee is employed as a monthly paid salaried employee.
1.2 The employment is entered into for a fixed term, and automatically expires without notice on [Date].
2. DUTIES AND RESPONSIBILITIES
2.1 The Employee's duties shall include but not be limited to the following duties:
[Description of duties]
2.2 Further descriptions may be provided separately from time to time.
2.3 The Employee shall follow the guidelines from time to time laid down by the Company for the work and performance. At the commencement of the Agreement, the Employee shall report to [name], [title].
3. PLACE AND HOURS OF WORK
3.1 During the employment, the Employee's place of work shall be at the Company’s address, currently [address]
3.2 The Employee's normal working week is [number of hours] a week. However, the weekly hours may vary from week to week. Working hours shall be from [describe normal working hours] excluding a self-paid lunch break of half an hour’s duration per day.
4. OTHER EMPLOYMENMT ETC.
4.1 The Employee shall apply her/his full working capacity in the service of the Company, and may not have any other commercial interest or employment without the Company's written prior consent, cf. section 15 of the Salaried Employees Act (“Funktionærloven”).
4.2 However, subject to her/his fulfilment of her/his fulltime engagement with the Company, the Employee shall be entitled to make ordinary (passive) investments in profit-yielding assets which are normally the subject of such investments and do not result in de facto controlling interests. The capital investment shall not lead to liability exceeding the amount invested.
5. SALARY
5.1 The agreed salary amounts to DKK [amount] per month.
5.2 The salary is payable every month at the last banking day of the month.
5.3 The Employee has been informed that she/he may from time to time may be required to work outside normal working hours. No additional payment is made for such work performed outside normal hours, neither as direct payment nor as time off in lieu.
6. ABSENCE DUE TO SICKNESS AND LEAVE
6.1 The Employee shall notify the Company without delay of any absence due to sickness, injury or other incapacity. Notification shall happen to [name] on [tel.] or [email]. Failure to comply with this clause is considered a breach of the Employee’s duties with the consequence that the Employee can be dismissed summarily (DA: “Bortvisning”).
6.2 The Employee is entitled to full salary during lawful absence due to illness.
6.3 The Employee is entitled to maternity leave/paternity leave/parental leave in accordance with mandatory Danish law. During periods of leave, the Employee receives salary to the extent – and only to the extend - this is required by mandatory Danish law hereunder the Danish Salaried Employees Act (DA: "Funktionærloven"), the Danish Parental Leave Act (DA: “Barselsloven”) and the Danish Public Allowance Act (DA: “Dagpengeloven”) or with such amount which the Company receives as reimbursement through the Confinement Fund as per the regulation of “Barsel.dk”.
7. HEALTH STATEMENT
7.1 The Employee has informed that he/she at the start of the job does not suffer from a chronic disease or anything else which could significally be hampering of the ability to fulfil the concrete job or performance hereof.
8. HOLIDAYS
8.1 The Employee is entitled to 25 days (5 weeks) of holiday in compliance with the Danish Holidays Act (DA: “Ferieloven”). The holiday is earned and paid in compliance with the Danish Holiday Act.
8.2 The Employee is responsible for reporting and agreeing any spent holiday to [department/person]. Such reporting shall be done in writing i.e. by e-mail.
9. IT POLICY
9.1 For the purpose of ensuring the safe operation of the Company’s IT system and the Employee’s observance of this Agreement, the Company performs logging and monitoring of the IT system hereunder the Employee’s use of the IT system including internet and e-mail use in relation to the work. As part hereof, the Employee agrees that the Company shall be entitled to access and read all of the Employee’s work e-mail correspondence unless marked “Private” in the subject line.
10. INTELLECTUAL PROPERTY RIGHTS, KNOW-HOW ETC.
10.1 The Company holds the property to any kind of text, graphic materiel, concepts and other product, here under know-how, inventions, works etc., which the Employee may discover, create and/or develop alone or in collaboration with others in the course of her/his employment with the Company. The products are irretrievable transferred to the Company and may not be copied or in any other way removed from the Company. Remuneration for such rights is featured in the salary.
10.2 The copyright of computer programs developed by the Employee in the performance of her/his duties for the Company or according to the Company's directions shall pass to the Company without limitations and free of charge. The copyright of other works which the Employee may create in the course of his/his employment is also considered to belong to the Company. There shall be no limitations to the right of the Company to make changes in any material covered by the transferred copyright just as there shall be no limitations whatsoever to the right of the Company to transfer the copyrights to a third party. The Employee waives all rights to claiming the copyrights to material covered by this clause 10.2.
10.3 The Employee hereby agrees and undertakes to execute such deeds and documents and do all such acts and things as may be necessary or desirable in the opinion of the Company in order to substantially protect and/or maintain the rights of the Company and Group Companies in respect of the matters referred to in this clause.
10.4 The Company has sole rights to and is eligible to in any every sense to organize such property rights, here under by refining, changing, producing, reproducing, forwarding, selling etc. The Company may use this Agreement for registration or the like of the relevant property rights. Thus, the Employee is in no way entitled to protest towards violation of the property rights.
11. TERMINATION
11.1 This Agreement may be terminated by either Party in compliance with the provisions on termination as provided by the Danish Salaried Employees Act. Hence, after the agreed probationary period, cf. clause 11.3, the Employee may terminate his/her employment with 1 month notice, and the term of notice on the part of the Company will be:
Up to 5 month's employment: 1 month to the end of a calendar month,
Up to 2 years and 9 months’ employment: 3 months to the end of a calendar month,
Up to 5 years and 8 months’ employment: 4 months to the end of a calendar month,
Up to 8 years and 7 months’ employment: 5 months to the end of a calendar month,
And, subsequently, 6 months to the end of a calendar month.
11.2 The employment is entered into for a fixed term, and automatically expires without notice on [Date].
11.3 Notwithstanding clause 11.1, a probationary period of 3 months shall apply. During the probationary period, both Parties may terminate the Agreement with a notice of 14 days to end within the probationary period.
11.4 Notwithstanding clause 11.1, if the Employee is absent from work for 120 days during 12 successive months due to illness, the Company shall be entitled to give the Employee one month notice to expire at the end of a month, in accordance with section 5 (2) of the Danish Salaried Employees Act, on the condition that the Employee is still absent from work when being given the notice of termination.
11.5 Notice of termination by either Party shall be made in writing.
11.6 The Employee is always obligated to keep the Company informed of her/his residence. Notice of termination addressed by the Company to the Employee’s last stated address is therefore considered a valid and legal notice.
12. CONFIDENTIALITY AND DUTY OF LOYALTY
12.1 The Employee shall observe secrecy with respect to all information that may come to her/his knowledge in the discharge of her/his duties for the Company, including but not limited to information regarding internal relations, business plans, plans of operation and methods, trade secrets and other secrets of the Company or the Company's business relations, including customers which is not already made public. This duty of secrecy shall also apply after the Employee's resignation from the position with the Company. Reference is made to the Danish Marketing Practice Act, sections 3 and 23.
12.2 The Employee is during the employment covered by a duty of loyalty which among other things means that the Employee is obligated not to perform competing business during the employment.
12.3 Breach of the confidentiality obligation and the loyalty obligation is considered material breach of the employment relation and may lead to summarily dismissal.
13. GOVERNING LAW AND VENUE
13.1 The provisions of the Danish Salaried Employees Act shall apply to this Agreement.
13.2 This Agreement is not governed by a collective agreement.
13.3 The Parties agree to submit to the exclusive jurisdiction of the Danish Courts as regards any claim, dispute or matter arising out of or relating to the Agreement. The Parties agree that only City Court of [court] shall be the venue for any litigation between the Parties related to this Agreement.
14. COPIES
14.1 This Agreement has been drawn up in two original counterparts of which each Party has received one.
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What is a fixed-term employment contract?
Unlike permanent contracts, fixed-term employment contracts have a predetermined end date or are based on project completion. These contracts specify the duration of employment, making them perfect for addressing seasonal business demands, parental leave coverage, or project-based assignments.
Employees under fixed-term contracts typically receive similar conditions, wages, and benefits as permanent employees, ensuring fairness and consistency in employment policies.
Once the contract term expires, organizations can renew, extend, or terminate the agreement based on their needs and priorities.
Access our free permanent employment contract template here.
When to use a fixed-term employment contract
Fixed-term contracts should be used when companies take on another staff member for a set time. Common ones are for the use of a maternity leave contract whereby a new employee has been brought into the company to take over the role of an individual on maternity (or paternity) leave.
As a result, the new employee is only required for a certain period. An interim employee could also be needed to cover staff absence due to long-term sickness or simply when using contract employees in projects or seasonal work.
What are the advantages of an employment contract with a fixed term?
When it comes to fixed-term employment contracts, it is crucial to include how long the term is for. By doing so, there is no room for confusion about how long a person is expected to be employed. Depending on the jurisdiction, this can be a significant measure when terminating the contract without additional delay due to labor legislation.
Pros:
- Flexibility: Fixed-term contracts provide employers with flexibility in managing staffing levels according to business fluctuations, seasonal demands, or project requirements.
- Clear expectations: Both parties know the exact duration of the employment relationship, which can help in planning and resource allocation.
- Trial period: Employers can use fixed-term contracts as a trial period to assess an employee's performance and fit within the organization before committing to a permanent position.
- Project-based work: Ideal for project-based assignments where hiring employees for a specific duration aligns with the project timeline and objectives.
- Legal protection: Clearly defined contract terms protect both parties' rights and obligations, reducing the risk of disputes or misunderstandings.
Cons:
- Uncertainty for employees: Fixed-term contracts may create uncertainty for employees regarding job stability and future employment prospects, especially if renewal is uncertain.
- Limited benefits: Employees on fixed-term contracts may receive fewer benefits compared to permanent employees, such as health insurance, retirement plans, or job security.
- Limited career growth: Employees may perceive fixed-term contracts as hindrances to career advancement, as they often lack the long-term development opportunities associated with permanent positions.
- Potential for exploitation: Some employers may misuse fixed-term contracts to avoid providing benefits or job security, leading to exploitation of employees.
- Difficulty in securing loans: Employees on fixed-term contracts may face challenges in securing loans or mortgages due to perceived instability in employment.
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Ultimately, by signing a fixed-term employment contract far more easily from the very start of a working relationship, you are left only with the benefits that an employment contract provides. Both sides know what they need to do to fulfill the contract and are, therefore, far more likely to do so. Thus, a more profitable and mutually respectful relationship can begin.
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This contract outlines the terms of a fixed-term salaried employment agreement between an employee and a company. It covers details such as job title, duties, work hours, salary, leave policies, intellectual property rights, termination terms, confidentiality, and governing laws. The employment has a set end date and will automatically expire without notice on that date.
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