Terminating a Temp Worker in Denmark: Step-by-Step Guide 2026

Terminating a temporary worker in Denmark is one of the most legally sensitive tasks a Polish staffing agency can face. Whether the assignment ends naturally, the client company withdraws a placement, or conduct issues arise on site, the termination of a temporary worker in Denmark must follow a precise sequence of steps under both Danish and Polish law. Getting even one step wrong can expose the agency to claims from the worker, penalties from Danish authorities such as Arbejdstilsynet, or compliance problems with ZUS and PIP back in Poland. This guide walks agency managers through the full process as it stands in 2026.

Step 1: Establish the Legal Basis for Termination

Before taking any action, the agency must identify the correct legal ground for ending the employment relationship. Danish rules on temporary agency work are primarily governed by the Act on Temporary Agency Work (commonly referenced as LOV 89 in its consolidated form), which implements the EU Temporary Agency Work Directive. Grounds for termination generally fall into three categories: expiry of a fixed-term contract, early termination by the client company, or dismissal for cause related to the worker's conduct or capability.

If the client company has simply decided not to extend the assignment, the agency still bears the employer obligations. The worker's contract is with the agency, not with the user company, so the agency cannot simply redirect all responsibility to the client. Clarify in writing with the client whether the placement is ending and obtain a dated confirmation. This document will be essential in every subsequent step.

For workers posted from Poland, the Polish Labour Code (Kodeks Pracy) and the Act on Employment of Temporary Workers also apply to the employment relationship, particularly regarding notice periods and severance entitlements. If the worker holds a Polish employment contract, the agency must comply with both legal frameworks simultaneously.

Step 2: Calculate and Serve the Correct Notice Period

Notice periods under Danish law depend on the length of service and the terms of any applicable collective agreement. Many Polish agencies operating in Denmark work under or alongside collective agreements negotiated with Danish trade unions, and these may set minimum notice periods that are more generous than the statutory floor. Always check the specific agreement covering the worker's sector before issuing any notice.

During the notice period, the worker is generally entitled to continue receiving full pay and benefits, including any agreed supplements. If your agency needs a refresher on how pay components are calculated for posted workers, the article on How to Calculate Overtime for Polish Workers on a Danish Construction Site 2026 provides a useful reference for understanding wage structures on Danish sites.

Notice must be served in writing. A verbal notification carries no legal weight in a dispute. The written notice should state the last working day, the reason for termination at an appropriate level of detail, and information about the worker's right to seek guidance from a union or legal adviser.

Step 3: Prepare the Required Documentation

Agencies often underestimate the paperwork burden at this stage. The core documents you need to prepare include the formal written termination letter, a final pay calculation covering all outstanding wages, holiday pay (feriepenge) owed under the Danish Holiday Act, and any agreed bonuses or allowances. Danish law on holiday pay is strict: accrued but untaken leave must be paid out at the point of termination, not carried over indefinitely.

On the Polish side, the agency must prepare documentation for ZUS, the Polish social insurance institution, to reflect the end of the worker's insurance period. If the worker was registered under a Polish employment contract and posted to Denmark, the A1 certificate confirming continued Polish social security coverage must be updated or closed. Guidance on the correct ZUS procedures is available directly at www.zus.pl.

The agency must also consider its obligations toward PIP, the Polish National Labour Inspectorate, particularly if the termination involves a dispute or if the worker has raised a complaint. PIP has jurisdiction over Polish employers and posted workers. More information on employer obligations is available at www.pip.gov.pl.

If your agency is not yet fully registered in the Danish RUT system (the register of foreign service providers), address that immediately, since operating without proper registration compounds any compliance risk during a termination. The RUT Registration Step by Step: Polish Agency Guide 2026 covers everything you need to know about that process.

Step 4: Conduct the Termination Meeting

Danish workplace culture places significant weight on dignified, transparent communication, especially in difficult employment situations. Arrange a private meeting with the worker, ideally with a neutral witness or HR representative present. Explain the reason for termination clearly and calmly, hand over the written notice, and give the worker an opportunity to ask questions.

For practical guidance on managing these conversations across a language and cultural barrier, the article on Difficult Conversations With Workers on a Danish Site 2026 offers concrete advice that agency managers and site supervisors have found useful.

Document the meeting in a brief internal record noting the date, who was present, what was communicated, and that the written notice was handed over. If the worker refuses to sign an acknowledgement, note that refusal in the record and send the notice by registered post as well.

Step 5: Process Final Pay and Close Administrative Files

The final payslip must be issued within the timeframe set by the worker's contract or applicable collective agreement. It should itemise all components: base pay for days worked, any overtime, accrued holiday pay, and any deductions. Errors at this stage are among the most common triggers for formal complaints to Arbejdstilsynet, the Danish Working Environment Authority, whose mandate covers not only safety but also working conditions for posted workers. You can verify current employer obligations through the official Danish authority at at.dk.

Once the final pay is processed, close the worker's file in your Danish and Polish payroll systems, notify ZUS of the end of the posting period, and retain all documentation for at least the minimum statutory period required under both Danish and Polish law.

Common Mistakes Agencies Make

The most frequent errors in this process are: issuing notice verbally rather than in writing, miscalculating holiday pay by applying Polish rather than Danish accrual rules, failing to notify ZUS promptly about the end of the posting, and neglecting to confirm the termination with the client company in writing before acting. A hypothetical example illustrates the risk well: an agency employing a group of construction workers might verbally inform them that their assignment is over, only to receive formal complaints weeks later because no written notice was ever issued and holiday pay was calculated incorrectly. The resulting investigation by Arbejdstilsynet and ZUS simultaneously would be both time-consuming and costly.

Actionable Advice for Agencies in 2026

Build a termination checklist into your standard operating procedures now, before you need it. The checklist should cover the legal basis, notice calculation, documentation preparation, the termination meeting, final pay processing, and ZUS notification. Review it against any collective agreement your agency operates under, since sector-specific rules can alter the statutory defaults significantly. Train your HR staff on both Danish and Polish requirements, and where there is genuine legal uncertainty, consult a qualified employment lawyer in both jurisdictions rather than relying on general assumptions. A well-managed termination protects the worker's rights, shields the agency from liability, and preserves the professional reputation that Polish agencies have worked hard to build in the Danish market.