When is one considered to be an employee?
The concept ‘employee’ is not a static and uniform definition that applies to all areas of legislation. Therefore, the interpretation of the concept must be searched for in the legislation on the relevant judicial area.
Definition of an employee
In the context of the Danish ATP Act, an employee is someone who receives remuneration for personal work on a contractual basis. An employee is typically someone who has signed an agreement with an employer concerning:
carrying out occupational work for the employer (providing or service or resolving tasks)
based on the employer’s instructions
at the employer’s expense and risk
while being supervised by the employer
and working in the employer’s name and
the employee is entitled to receive something in return for the work (service) which is paid for by the employer.
Whether a person is considered an employee will depend on a concrete and holistic assessment of the terms and conditions for the employment.
It is not critical whether there is provided cash remuneration for the work or another payment in kind, such as room and board, and it is not critical whether the remuneration is called a salary, fee, commission or something else.
It is also in itself not decisive that the remuneration is taxed either as A- or B-income.
If you are in doubt about whether an employee relationship is in effect, you must contact us.