Archive:Public employment - Denmark

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<Introduction: simple language, not too long, kind of executive summary>

Regional and administrative organisation

Introduction

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 agreei ng 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 two till six 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

The Labour code stipulates private and public sector employee pay conditions. Salaries are based on the degree of difficulty of the position occupied and seniority. Employees achieving outstanding results may benefit from seniority credit and receive an additional bonus up to a maximum of 50% of their base salary.

Social dialogue and system of representation

Public employees have the right to join a union and to strike (with restrictions for judges, prosecutors, the armed forces and security forces). Collective agreements are signed by the Ministries as the employer. At a more general level, the State is represented by the Economic and Social Council, comprising 5 Ministers and 2 State Secretaries. Civil servants are represented by the two main trade unions (CMKOS and ASO).

Negotiations deal mainly with working conditions, pay, modernisation of the social security system, equal opportunities, training, etc. Social dialogue is characterised by its informal nature, as collective agreements only take place in certain situations. There is no obligation to set up committees or other types of formal structures for the representation of public employees.

Senior civil servants

“Senior Civil Servants” (SCS) have neither differentiated status nor special working conditions. (Summary Table)

Recruitment and Appointment: As for the rest of the Czech civil service, recruitment is open to applicants from the public and private sectors. To be accepted at a managerial position in the central state administrative authority, the candidate has to be appointed by the relevant minister. This leads to greater political appointments for senior positions.

Training: Within the framework of enhancing the professional skills of the public administration employees, it has been proposed that senior civil servants demonstrate their general and professional competencies in examinations. Training is mainly provided and funded by individual ministries.

Remuneration: The base salary depends on the position occupied and additional pay supplements are awarded according to the number of officials he/she manages and his/her individual performance.

Policy on Diversity and Work-Life Balance: Senior civil servants are subject to the general system for workers, although there is a special policy (without specific targets) to improve equality between men and women.

Mobility Programmes: Mobility is not very common in the Czech civil service and is only possible with the prior consent of the employee.

Recent reforms and prospects

The State Administration Institute has been training Czech managers in the Common Assessment Framework (CAF). A practical guide on the CAF was also published in 2005. The most ambitious objective is the coming into force of the new regulation in terms of public employment and the creation of a Civil Service Statute which defines the working conditions of employees serving the Czech Public Administrations.

Data sources and availability

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