Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

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Amendment of the Danish Stock Options Act

New Legislation Enacted

Author: Tina Reissmann, Partner – Labora Legal

The Danish Stock Options Act has been amended with effect from January 1, 2019, repealing the freedom of contract in relation to employee share schemes. In the previous Act, the reason for termination of employment impacted employees’ rights. Then a termination due to the employer’s circumstances would entail that the employee was considered a “good leaver” and would not affect the employee’s stock options rights. The employee was entitled to keep his/her options according to the original program – irrespective of what the program said – and would also be entitled to receive a proportional “allocation” that the employee would have had the right to if the employee had been employed at the end of the fiscal year. With the amended Act the article securing the employee’s rights in the event of a termination due to the circumstances of the employer, has been annulled. Furthermore, it is possible for the parties to agree for the employer to buy back stocks, which the employee has been granted. The aim of the amended Act is to increase flexibility and simplify the rules. This comes at the cost of employees’ current rights, but will be more aligned with the intentions behind such incentive schemes.

Amendment to Equal Treatment Law Based on the #Me-Too Movement

New Legislation Enacted

Author: Tina Reissmann, Partner – Labora Legal

The Danish Parliament has passed the bill to amend the Danish Act on Equal Treatment of Men and Women, which was introduced by the Danish Ministry of Employment in November 2018, based on the #Me-Too movement. In numerous sexual harassment cases, the Danish courts have focused on the question of whether there was a sort of “relaxed work tone” and casual work environment. The bill emphasizes that the Government regards breaches of the Act on equal treatment as serious and, therefore, “It should not be of importance, in the consideration of whether sexual harassment occurred or not, if there were a relaxed work tone or casual work environment. This is not the employee’s choice, whether or not this is the case.”

Dress Code Not in Conflict with Equal Treatment Law

Precedential Decision by Judiciary or Regulatory Agency

Author: Tina Reissmann, Partner – Labora Legal

The Danish Board of Equal Treatment found that a workplace dress code setting different attire rules for men and women was not in conflict with the Danish Act on Equal Treatment of Men and Women. As part of a large merger process, the company implemented a dress code requiring “professional appearance,” “formal appearance” and that the employees “dress accordingly”. The male employee worked in an open-office space where both customers and business partners visited. The company thus wanted the male employee to wear formal and professional attire. Shortly before summer, the manager at the employee’s department sent an email to the employees, specifying how the dress code should be understood. In the email, the manager stated that men had to wear trousers and closed-toe shoes, whereas women could wear bare-legged outfits and open-toe shoes, as such attire was considered professional for women. The Board of Equal Treatment found that the company’s dress code set requirements for professional and formal attire for both men and women. Taking into account the open-office landscape and visits from international customers and business partners, the Board of Equal Treatment held that the company’s enforcement of the dress code was not in conflict with the Act.

The Christmas Party – Summarily Dismissal

Precedential Decision by Judiciary or Regulatory Agency

Author: Tina Reissmann, Partner – Labora Legal

Behave appropriately at all times – including at the Christmas office party. This is clearly illustrated by this case: As a nice Christmas office party was about to end, a middle manager suddenly made advances towards a female employee, grabbing her breast and stomach while she was sitting at a table. She expressly asked him to stop and moved to the other side of the table. The middle manager then did the same thing again. The umpire found that the middle manager had behaved in a sexually offensive way towards the female employee at the party, which constituted gross misconduct. An aggravating factor in this assessment was that the incident involved a manager. It did not matter that the manager and the employee worked in separate departments and that the manager had had an immaculate employment record for more than 25 years. Accordingly, the summary dismissal was justified and the tribunal found in favor of the employer.

Proposal on “No Deal Brexit” and British Citizens in Denmark

Proposed Bill or Initiative

Author: Tina Reissmann, Partner – Labora Legal

All Brexit scenarios are possible right now, and the Danish government has therefore announced the proposal for measures concerning British citizens living in Denmark in case of a “no deal Brexit”. Under the proposal, if put forward to the Danish Parliament and passed, British citizens residing in Denmark pursuant to EU law before Brexit will be able to stay in Denmark on conditions largely corresponding to the rules in the “EU-Residence Order.” Such scheme would be temporary and apply until a permanent solution is put into place. British citizens currently residing in Denmark will thus be able to continue to legally reside and work in Denmark without a work and residence permit. Accordingly, it is recommendable for employers to identify the employees affected and stay updated on the situation to clarify any uncertainties – hopefully – as quickly as possible.