Unfair dismissal: what are the consequences for the employee?

Verified 12 March 2026 - Public Service / Directorate of Legal and Administrative Information (Prime Minister)

An employee dismissed by his employer can contest his dismissal by referring the matter to the Labor Court (CPH). The judge may recognize that the termination is abusive (without real and serious cause) where the reason for dismissal is not valid. We present you the information to remember.

An unfair dismissal is a dismissal whose ground is considered by the judge to be unjustified. It is also said that termination is without real and serious cause.

Yes, the employee may be reinstated in the company if 2 conditions the following shall be complied with:

  • Proposal for reinstatement by the judge
  • Agreement of the employer and the employee for this reintegration.

The reinstated employee retains his acquired benefits (e.g. salary, seniority).

If it is not possible to reinstate the employee, the judge awards the employee compensation for dismissal without real and serious cause. This allowance is paid by the employer.

The amount of the allowance varies according to the size of the company and the length of service of the employee at the date of dismissal. The judge determines the amount.

A simulator is used to indicate the minimum and maximum amounts of compensation for unfair dismissal:

Estimate the amount of compensation for unfair dismissal

Please note

In determining the amount of compensation for wrongful dismissal, the judge may take into account the severance payments conventional or contractual payments already received by the employee.

Yes, it can be combined with thestatutory severance pay.

During a dismissal on economic grounds, the allowance may also be cumulated with the allowances paid in the following cases:

Warning  

Compensation for wrongful dismissal accumulates with compensation due in the context of economic dismissal. This cumulation cannot exceed the maximum amount of compensation for unfair dismissal.

Compensation for wrongful dismissal is not subject to theincome tax.

Compensation for unfair dismissal may be exempted, under certain conditions, from social security contributions.

Estimate the amount of compensation for unfair dismissal

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