Archive:Public employment - Denmark
This Statistics Explained article is outdated and has been archived.
- Source: Ministry of the Spanish presidency 2010, publication "Public employment in the European Union Member States" .
This article is part of a set of background articles and introduces public employment in Denmark.
Regional and administrative organisation
Denmark is a constitutional monarchy in which almost 90 % of the population is satisfied with the way in which democracy works, according to opinion polls. More than 5 % of voters are affiliated to a political party, whilst 75 % of the active population is a member of a trade union.
System of government
Denmark is a parliamentary democracy. The Parliament (Folketing) has 179 seats (175 Denmark, 2 Pharaoh Islands and 2 Greenland) which are awarded to the parties by proportional representation. The legislature is of 4 years, although the Prime Minister may call early elections.
The Prime Minister determines the number of Ministers. The figure of Deputy Minister or State Secretary does not exist. The Minister is the supreme authority in his/her Ministry and is politically accountable to Parliament and legally accountable to a Court of the Kingdom. Supervision and control of the central and municipal administration is exercised by the Ombudsman, elected by Parliament at each new general election.
The main functions of the Folketing are debate, approval of draft bills of law and supervision of the Government and Administration. This supervision is also carried out by Interventors elected by the Folketing and the Audit Office.
Regional organization
The level of decentralization in Denmark is relatively high. In 2007, a reform was implemented which involved a radical transformation of the municipal map and the distribution of powers and positions between the State, Regions and Municipalities. 14 Provinces were replaced with five regions governed by a Regional Council, elected by popular vote, and whose main competences are health and regional development. The 271 Municipalities were reduced to 98, under the administration of Municipal Councils elected by popular vote, with competences for tax collection, education, environment, roads, etc. Regional and municipal elections are held every 4 years (there are no early elections).
Public administration
Central Administration is divided into Ministries, which deal with a specific area of administration, headed by Ministers and assisted by Director-Generals, who are normally civil servants. There are also a large number of Committees, representing Groups of interest in different issues and they have consultative functions although, at times, with control power, even budgetary control. There are also Government Agencies, dependent on the Ministries.
Public employment structure
The relationship between the employer and the individual worker is usually regulated by Collective Agreement. However, civil servants have their own legislation. There are two types of public employees, governed by two different systems.
Since 2001, civil servants are only those indicated in the Circular of 11/12/2000, applicable to civil servants employed in the state sector and the National Church. Since then, the number of civil servants has fallen and now stands at around 36 %.
Civil servants are:
- management,
- judiciary,
- police,
- prison officers,
- defence, etc.
The remaining groups are usually in categories regulated by collective agreement.
Employees subject to employment legislation are governed by collective agreements signed by the Ministry of Finance and trade unions. Civil servants, as indicated, are subject to their specific law and the Pension Law. Whilst the laws regulate matters such as duties and obligations, disciplinary rules, dismissal and pensions, the determination of pay and other working conditions for civil servants are subject to collective bargaining.
There are also two more staff categories:
- regulation employment and
- contractual staff.
The former is a category used for areas that are not subject to a collective agreement, with unilateral conditions. The individual contract is used for high level managers, with flexible salaries, non-concurrence rules, special dismissal, special retirement scheme, etc. Conditions are agreed between the employee and the employment authority. Both types of staff are subject to general employment legislation.
The main differences between civil servants and other public employees are that civil servants are not entitled to strike; are entitled to 3 years salary if they are dismissed, and their pension scheme consists of a defined plan of benefits. The following table shows the main characteristics of both :
The Danish Constitution does not allow civil servants to be foreign citizens, but foreigners occupying these posts shall be recruited with the same rights (including the pension scheme) as if they were civil servants in accordance with the regulations regarding the free circulation of workers in relation to Public Employment. However, there are some exceptions for defence or prisons.
Public employment managing body
The State Employer’s Authority is an agency within the Ministry of Finance.
The primary task of the State Employer’s Authority is to administer the State’s general responsibilities as an employer in the area of wages, pensions, personnel and management policy. The State Employer’s Authority enters into collective agreements and other agreements with professional organisations representing the approximately 178 000 employees in the state sector, and provides guidance and assistance to ministries and agencies within its overall area of remit.
Statistics
The public sector employs a total of 35.7 % of the Danish active population, divided into: Municipalities 25.5 %; State Sector 7 %; State-owned companies 3.3 %.
Rights, obligations, principles and values
Working hours are determined by collective agreement, by the Law on the Work Environment and by diverse European regulations. It currently stands at 37 hours a week. There is a possibility of agreeing on less or more (up to 42) hours.
Employees are entitled by law to 24 hours rest every 7 days and 11 uninterrupted hours per day. A paid lunch-break of up to half an hour is included in the working day.
At local level, agreements can be made with flexible working hours and work-life balance schemes. For state sector employees, holiday pay includes normal pay plus a special allowance calculated as 11/2 of the percentage of income for the previous year.
With the 2008 collective agreement the regulations concerning paid maternity and paternity leave was altered. The regulations for maternity and paternity leave remain the same until the child’s14th week, and entails 6 weeks before birth and 14 weeks after birth maternity leave. Furthermore it contains 2 weeks paternity leave at the birth of the child. This applies also to registered partners who have been living together for 2½ years. After the 14th week new regulations apply which allows 6 weeks maternity leave and 6 weeks earmarked paternity leave. In addition another 6 weeks leave can be taken as either maternity or paternity leave or divided between the parents. The new regulations increase the paternity leave from 2 till 6 weeks and increase the total leave from 12 to 18 weeks if both parents are employed in the state. If only one parent is employed in the state, he/she can take 12 weeks leave.
Also in 2008, the regulation on paid leave on the child’s first day of illness was extended to also include the child’s second day of illness. If the parents wish, they can share the two days, so the one parent can stay home on the first day and the other parent on the second.
Career-based system. training
Training is considered in terms of effectiveness to enhance employee skills and for better adaptation to the job. In other words, to bring the employee closer to the real needs of citizens. Training activity is coordinated by the Ministry of Finance, although the Departments or Agencies are responsible for providing training in their own areas and specialities. Training is considered to be a right and an obligation for employees. In recent years, a lot of importance has been given to training, considering it as an on-going process and linked to career development.
In the administrative career, non-performance related factors such as seniority are currently losing importance, in favour of systems that evaluate performance. Therefore, from the initial entry position, in which accredited knowledge and experience is used, performance in the position is evaluated along with the objectives and results achieved.
Remuneration
At institutions operating with a payroll (Ministries or Agencies), recruitment of new staff is limited to the total workforce on the payroll. For other institutions, such as Universities or technical colleges, the limit lies in the total budget.
Pay for Central Government employees is determined according to the employee category. At higher management levels, the total number of positions and individual pay are determined centrally. For the remaining positions, there is a centralized basic pay classification and some bonuses subject to decentralized negotiation. The possibility of these bonuses depends on the position and whether it is subject to the new or old pay system, the differences of which are explained below.
In the State sector, a salary adjustment procedure has been agreed which ensures that pay is parallel to that of the private sector, through the comparison of employment market increases and the state sector. In the event of differences, 80 % of the difference shall be taken into account for the next pay agreement adopted as an adjustment to be made by Central Government. This procedure makes the private sector the long term reference for pay in the state sector.
Reform of the Pay System
The new system was introduced in 1998 and the number of employees affected has gone from 3 % to the majority (total in education, offices and managers). It is based on :
- Decentralization to bodies that have a better understanding of the working condition, employee skills and effort.
- Linking pay to results and the individual skills of employees.
- Motivation through pay as a management tool to achieve a more efficient public sector.
It is based on a basic pay system, consisting of basic pay scales which are agreed centrally and bonuses agreed non-centrally that link pay related to the number of years in the job to a decentralization of the system and increasing importance of the bonuses in the whole pay package.
Bonuses that may be agreed at local level are related to:
- Qualifications : skills, professional and personal qualities of the employee, quality of the results, comparability with similar tasks performed in the labour market or the intention to recruit or retain staff is rewarded. As a general rule, this type of bonus is permanent.
- Functions : rewards responsibility, special tasks or functions that are usually temporary, but they may become permanent.
- One-off payments: for exceptional tasks.
- Performance : For achieving certain previously agreed (quantitative or qualitative) objectives. This type of bonus may be agreed individually or for a group of employees.
Employees under the former pay system are paid in accordance with a series of pay scales which go up automatically in accordance with seniority (usually every 2 years). The salary scale consists of 55 grades, and each grade is split into levels. Classification into one grade or another depends on the tasks, responsibilities and qualifications required for the job. Furthermore, there is another type of bonus for permanence in the institution, overtime, etc. Differences between municipalities in 5 different areas of the country are also taken into consideration in relation to salaries, prices and local taxes.
Social dialogue and system of representation
Central trade union organizations are represented in collective bargaining by the Danish Central Federation of State Employees (CFU) to which some of the less representative trade unions do not belong (around 2 or 3 % of public employees). This Commission is made up of the following :
- The Association of Danish State Employees’ Organisations: Federation of trade unions covering qualified and unqualified, contractual and civil service employees belonging to the Danish Confederation Trade Unions.
- The Collective Negotiation Secretariat of Central and Local. Government Employees (SKAF): Federation of three public employee trade unions: Civil servants, contractual staff and the Association of Danish Teachers.
- The Danish Confederation of Professional Associations: Covering management and professionally qualified employees.
Framework Agreements and questions related to pay and working conditions are negotiated between the Ministry of Finance (State Employer Authority) and the Commission (CFU) within collective bargaining, which usually takes place every 3 years. These negotiators cooperate via mutual consultations in projects of common interest, as required.
The Management of the workplaces in the state sector is responsible for the organization and distribution of work, but in a way that links formal and informal dialogue, cooperation participation to social representation. All workplaces with at least 25 employees must have a Consultation Committee. At smaller workplaces, the same rules of cooperation prevail but without the formal existence of this committee. In the case of disagreement between staff at a certain workplace and its Management, the Committee shall be formed to take the necessary decision.
The number of committee members is subject to local agreements, although it may not exceed 14 (7 management representatives and 7 employee representatives). Employee representatives enjoy special protection in relation to dismissal or transfers.
Senior civil servants (Summary table)
Recruitment
Recruitment of Senior Civil Servants is always carried out openly and publicly and public employees do not have any preference over candidates from the private sector. They are appointed by the Queen on the basis of a recommendation from an Executive Committee for a period of 3 to 6 years (extendable for a maximum of 3 more years). The employment contract includes their pay conditions and previsions for when the contract expires.
Recruitment is based on seniority, qualifications and merit shown in performance. Performance assessment is annual and is performed by the immediate boss. Along with career and pay, training is one of the areas that underwent most changes in the 2007 Quality-reform, improving management qualifications.
The reform deals with the remuneration of SCS to make its management more flexible. Whilst maintaining a centralised basic salary classification, various bonuses can be negotiated, with the possibility of linking results to their pay and likewise, between the performance appraisal of Director-Generals and their remuneration system. The Public Employee Authority has developed a pilot project to increase the number of women in management positions.
Overtime does not exist per se, but there are additional hours for SCS that may be awarded bonuses for an increased workload (in addition to those linked to the fulfilment of objectives). Flexi-time, part-time work or tele-working are not widespread, although they are possible. SCS have the same rights as the rest of employees in relation to maternity/parental leave.
Recent reforms and prospects
In addition to the aforementioned 1998/99 reforms to the pay system, the “Qualitative Reform” took place in 2007, with a total of 180 initiatives to improve Human Resource Management and particularly for Public Managers.