Western High Court: Failure to Provide an Employment Contract Does Not Always Give Rise to Compensation Under the Danish Employment Certificate Act

On 25 June 2026, the Western High Court (Vestre Landsret) delivered a judgment in a case concerning whether four brothers were entitled to compensation under the Danish Employment Certificate Act, and whether the brothers and their father had received salary up to the agreed closing date in connection with a change of ownership.

The case concerned a father and his four sons, who were employees and indirect owners of a company. As part of the transfer of their equity interests, it was agreed that they would remain entitled to salary until the closing date of 2 October 2023. A dispute subsequently arose as to whether they had in fact been paid salary up to the closing date. At the same time, the four sons claimed that they had never received written statements of employment and were therefore entitled to compensation under the Danish Employment Certificate Act.

The Employees' Close Connection to the Company Precluded Compensation

It was undisputed that the four employees had not received written statements of employment. The Western High Court noted at the outset that, as a general rule, this would entitle them to compensation under the Danish Employment Certificate Act.

However, the Court also attached significance to the fact that the four employees were not merely employees of the company. Following a merger in 2020, they had also become indirect co-owners through a holding company that owned equity interests in the company. In addition, they had been employed for many years by their father's company before the merger, after which that company became part of the continuing business.

Accordingly, the Court found that the employees had an exceptionally close connection to the company, which differed significantly from an ordinary employment relationship.

On that basis, and following a specific assessment of the circumstances, the Court concluded that there were no grounds for awarding compensation for the absence of written statements of employment.

Littler's Comments

The judgment illustrates that the failure to provide a written statement of employment does not automatically result in compensation under the Danish Employment Certificate Act. Whether compensation is payable depends on a case-specific assessment of the circumstances.

In the present case, the High Court placed decisive weight on the fact that the employees were not only employees but also indirect co-owners of the company. The Court also emphasized that they had been employed for many years by their father's company, which later became part of the company in which they continued their employment.

If you have questions regarding written statements of employment, an employer's duty to provide employment information, or other employment law matters, our specialists are ready to advise you on your rights and obligations. Please contact us for further information.

Disclaimer: The above does not constitute and cannot replace legal advice.

Reference to the judgment (BS-39798/2024-VLR)

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