4 weeks' compensation for not being issued with a statement of particulars

The two Danish High Courts maintain a compensation level of between 2 and 6 weeks’ pay for deficient statements of employment particulars.

 

On several occasions, the two High Courts have considered what a deficient statement of particulars should cost the employer after the Danish Statement of Employment Particulars Act was amended in 2007. And now the Western High Court has awarded two employees 4 weeks’ pay for not being issued with a statement of particulars.

 

The case concerned two recruiters who signed a contract with a recruitment business. Under the contract, they would recruit foreign workers for the business through a new private limited liability company. The plan was to make the two recruiters executives and co-owners of the new company. But while the company was in the process of being formed, the recruitment business terminated the contract on grounds of poor performance.

 

The two recruiters issued proceedings claiming pay as well as compensation for deficient statements of particulars – for none had been issued.

 

Employment relationship
The two recruiters submitted that they were entitled to compensation for not being issued with a statement of particulars. The recruitment business argued that the intention was to have the two recruiters own such a substantial share of the new company that there would be no employment relationship. Therefore, the business believed, the claim for compensation should be reduced or dismissed altogether.

 

The Court held on the evidence that the recruitment business was in fact the employer. As the two recruiters had not received a statement of particulars and as there were no excusable reasons, both of them were awarded 4 weeks’ pay in compensation.