Employees on individual contracts
As an employee on an individual contract, you are given membership offers matching your working life and needs, e.g. sector-specific legal advice and salary advice.
Check your contract
Is your monthly pay high enough for you to be employed on an individual contract? Our calculator will quickly and easily tell you. If your pay is below the salary threshold, you should contact Finansforbundet. You may be entitled to salary compensation from your employer and several terms of employment from the collective agreement.
Check it now
Q&A: What you need to know as an employee on an individual contract
Many of the Finansforbundet collective agreements set out a salary threshold for employment on an individual contract. This means that only employees with a monthly pay equal to or above this salary threshold may be employed on an individual contract.
Being employed on an individual contract also means that the employer is able to enter into an agreement with you that you are not covered by certain terms in the collective agreement, such as the annual pay increases.
Therefore, it is important that, on an ongoing basis, you keep an eye on whether your monthly pay is above the salary threshold of the collective agreement by which you are covered, because if it is not, you should not be employed on an individual contract.
If your monthly pay is lower than the salary threshold, your employer has to raise your salary in order for you to stay employed on an individual contract; in addition, your employer may owe you an increase in salary for the period during which your monthly pay was below the salary threshold.
The salary threshold of the collective agreements is adjusted on an ongoing basis, typically by the agreed pay increases, and, moreover, depends on whether you are entitled to the following collective agreement terms: employer's pension contributions, care days, compensation for Great Prayer Day, sixth week of holiday and special holiday supplement, or whether certain or all of these terms are included in your monthly pay.
For this reason, Finansforbundet has developed a calculator allowing you to check easily and quickly whether your current monthly pay is above or below the salary threshold for employment on an individual contract in your company.
Download the calculation sheet
In the calculator, simply choose the year, then the collective agreement you are covered by, and, finally, enter your total monthly pay, including your own pension contribution. You will then learn whether your monthly pay is above or below the collective agreement's salary threshold for employment on an individual contract.
Yes, of course you will. Our legal advisers advise all employees in the financial sector and therefore know in detail the individual contract wording.
If you are offered an individual contract, we recommend you to contact one of our legal advisers. You are also welcome to contact us if you are already employed on a contract and want us to review your terms of employment.
And as a contract employee, you may of course still exchange ideas and experience with and receive advice from our union representatives.
Your pay and employment terms depend on the collective agreement and the content of your individual contract plus any extra addenda to the contract. In addition, general employment legislation is applicable, such as the Danish Salaried Employees Act (funktionærloven), the Danish Holiday Act (ferieloven) and the Danish Equal Opportunities Act (ligebehandlingsloven).
Across the sector companies, our contractual employees are typically not covered by the annual pay increases agreed by Finansforbundet in its collective agreements. This means that, as a contract employee, you often have to negotiate an annual pay increase yourself.
Get pay negotioation assistance
Be aware, however, that the salary threshold for employment on an individual contract is adjusted annually in accordance with the pay increases agreed. If you have repeatedly failed to negotiate a pay increase, your monthly pay may have fallen below the salary threshold. Our new calculator will quickly and easily tell you.
If your monthly pay is lower than the salary threshold of a collective agreement, your employer will have to adjust your monthly pay to above the salary threshold in order for you to continue to be employed on an individual contract.
You should also note that your employer may owe you a pay increase for the period during which your monthly pay was below the salary threshold; it's therefore a good idea to contact Finansforbundet so that we can help you figure out whether you are owed a pay increase.
The terms of individual contracts differ depending on the type of position and company you work in.
Finansforbundet has analysed a vast number of individual contracts from the different companies of the sector. The trend seems to be that the contracts typically entitle employees to the following terms of employment:
- Employer’s pension contribution
- Sixth week of holiday (up to seven days)
- Annual salary review
- Extra holiday supplement in addition to that provided by the Danish
- Holiday Act
- Paid health, dental and group life insurance
- Extra days off (Friday after Ascension Day, Constitution Day, Christmas Eve and New Year’s Eve
- Time off in the event of a child’s illness
- Leave to care for closely related persons
- Full pay during maternity/paternity leave
- Hospitalisation of a child
- Leave, seriously ill child
- Leave, child with impairment
Moreover, the analyses show that employees on individual contracts are typically not entitled to the following terms of employment:
- Care days
- Annual pay adjustment, according to the collective agreement
- Extra severance pay according to the collective agreements (compensation payable under the Danish Salaried Employees Act)
- Mitigation measures in connection with termination of employment
- Part-time work for parents with children and senior part-time employment
As an employee on an individual contract, there are many advantages of being a member of Finansforbundet.
You support the continuation of pay and employment terms secured by Finansforbundet for contract employees by way of the collective agreements.
Our legal advisers are experts in reviewing individual contracts and are able to explain and optimise the terms for you if you are not used to reviewing this type of contracts.
Moreover, you may exchange ideas and experience with our local union representatives, who know your pay and employment terms, the sector and your area of work.
As a member, you also have access to other membership benefits such as 250+ events per year as well as the possibility to exchange ideas and experience and receive advice on your career opportunities from experts with in-depth knowledge of the financial field.
A number of cash membership benefits are likewise available to you, enabling you to save money thanks to your membership.
Helping you in your job
Do you know every wording of your individual contract and what it means to you at work? You probably don't, but our legal advisers do. They solely advise financial sector employees and therefore know all the pitfalls.
Not a member yet?
As a member, you receive sector-specific advice on well-being, career matters and rights along with opportunities to participate in events and networks. The first three months are free.
Sign up