Vismas Newsletter for Payroll and HR, Q2 - 2014

This newsletter presents the recent changes, deadlines and information regarding payroll and HR matters from Q2 – 2014 of interest to small entrepreneurs and up to large international groups.

If you have questions we are always ready for a consultation free of charge.

120-day rule

Please note: In order to bring the 120-Day Rule into operation, your employees have to be employed under the Salaried Employees Act, and this specific paragraph must be expressly stated in the employment contract.

The rule gives the employer the right to, under certain circumstances, make an employee redundant with one month’s notice due to illness, in spite of other agreed terms of termination, if the employee has been sick for 120 days within a year.

Recent verdicts have clarified the outer limits of when a termination of employment after the 120-Day Rule fulfill the conditions of the rule.

An example is the Danish High Court’s verdict from 15 September 2011: Termination of employment after 130 days of illness did not fulfill the 120-Day Rule. The employer should have made the employee redundant after 120 days; 130 days exceeded the time limit.

Another High Court’s verdict of 30 January 2014: The Court found that termination of employment only can happen when the 120th day of illness has passed, never earlier.

These two verdicts define the timespan within which termination with shortened notice can happen.

Holiday pay in connection with severance

If an employee resigns and has planned holiday the following month, it is now possible to pay for the planned holidays together with the last salary payment

Digital mailbox

From 1 November 2014 it is mandatory to have a digital mailbox if you are more than 15 years of age and has a social security number in Denmark.

We offer to send paychecks directly to the employees’ digital mailboxes. If you are interested, please contact your payroll consultant in order to learn more about transferring to the digital mailbox.

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