Doing Business in Greenland - Book - Page 11
5 Employment
In Greenland, the relationship between the employer and the
employee is regulated by the individual employment agreement,
legislation, and collective agreements depending on the type of job
position, i.e. the regulation, such as requirements for notice periods,
salary levels, etc. varies.
5.1 Employment Contracts Act
A new act on employment
contracts (Inatsisartut Act No. 16
of 21 November 2022) came into
force on 1 july 2025.
The Employment Contracts’ Act
applies to employment relationships
if the duration of the employment
exceeds one month, and the
average weekly working hours
exceed 15 hours.
The Act entails a duty for the
employer to provide certain
information on the employer, the
pay and working conditions, notice
periods, etc.
If the employer fails to observe the
duty to provide information, the
employer may be ordered to pay
compensation to the employee.
5.2 Salaried Employees Act
The Salaried Employees’ Act
(Inatsisartut Act No. 11 of 29
November 2013) provides for
certain statutory rights to salaried
employees, which may only be
deviated from by agreement in
favour of the employees.
The scope of the Salaried
Employees Act is white-collar
employees, such as employees
engaged in clerical work, trade,
technical or clinical work (e.g.
geologists, engineers, nurses and
doctors),
management,
etc.
Members of the executive board
not subject to supervision are not
covered by the Act. Blue-collar
workers, such as mechanics, cooks,
carpenters, cleaning personnel
etc., are also outside the scope of
the Act.
It is also a condition that the
salaried employees are not minors
and work 15 hours or more per
week in average.
The statutory rights include, among
other things, the right to a minimum
notice of termination (which
depends on the duration of the
employment),
the
right
to
compensation for unfair dismissal
on certain conditions, salary during
sickness, etc. Also, non-compete
clauses are subject to certain
limitations and payment.
5.3 Holiday Act
All employees in Greenland are
entitled to holiday in accordance
with the Holiday Act (Selfgovernment Act No. 12 of 3
November 2021) and thus five
weeks of holiday per year. The
holiday year in Greenland runs
from 1 February to 31 January.
Employees accrue the right to paid
holiday or holiday allowance (12%
of the salary) during the preceding
calendar
year.
Whether
an
employee has a right to paid
holiday or holiday allowance
depends
on
the
relevant
employment
relationship,
and
whether the employee has accrued
such right. Employees with a right
to paid holiday also accrue a right
to payment of a holiday supplement
of 1.5 % of their salary.
Under the Holiday Act, an
employee accrues 2.08 vacation
days per month.
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