Guide to employment, payroll and benefits in

Greenland

Rivermate offers complete payroll, benefits and compliance services for

Greenland

01. Overview

Last updated: 

August 19, 2021

Currency
Danish Krone
Capital
Nuuk
Ease of doing business
Language
Danish
Population
56770
GDP growth

02. Grow your team in

Greenland

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Greenland

, particularly if you don't have established local relationships. You can hire employees in

Greenland

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Greenland is the world's largest island, situated east of the Canadian Arctic Archipelago, between the Arctic and Atlantic oceans. Greenland is a self-governing region within the Danish Kingdom. Despite being geographically part of North America, Greenland has been politically and culturally linked to Europe for over a millennium, dating back to 986. The majority of the island's inhabitants are Inuit, whose ancestors migrated from Alaska through Northern Canada, eventually settling across the island by the 13th century. Today, the population is concentrated mostly on the island's southwest coast, with the remainder of the island sparsely inhabited. Sermersooq, Kujalleq, Qeqertalik, Qeqqata, and Avannaata are the five municipalities that make up Greenland. The Northeast Greenland National Park and the Thule Air Base are also unincorporated territories. While the former is under Danish jurisdiction, the latter is administered by the US Air Force. The largest permanent ice sheet outside of Antarctica covers three-quarters of Greenland. It is the world's least densely populated area, with a population of 56,081. Nuuk, the capital and largest city, is home to about a third of the population; Sisimiut, 320 kilometers north of Nuuk, is the second-largest city by population. The Arctic Umiaq Line ferry connects the numerous cities and settlements in western Greenland, serving as a lifeline. Greenland has been populated by Arctic peoples whose forefathers migrated there from what is now Canada at various times over the last 4,500 years. Norsemen, who had previously settled Iceland, began settling the uninhabited southern part of Greenland in the 10th century. These Norsemen sailed from Greenland and Iceland later, with Leif Erikson becoming the first documented European to reach North America nearly 500 years before Columbus reached the Caribbean islands. In the 13th century, Inuit people arrived. Greenland was not officially under the Norwegian crown until 1261, despite being constantly influenced by Norway and Norwegians. The Norse colonies vanished in the late 15th century, when Norway was devastated by the Black Death and fell into a state of decline. Following their demise in 1499, the Portuguese briefly explored and claimed the island, calling it Terra do Lavrador. Danish explorers returned to Greenland in the early 17th century. Denmark and Norway affirmed jurisdiction over the island in order to boost trade and influence. Norway lost sovereignty over Greenland in 1814 when the union was dissolved due to its low status. Greenland joined Denmark in 1814 and was fully incorporated in 1953, according to the Danish constitution. Greenlanders became Danish citizens in 1953, thanks to the Constitution. Greenland joined the European Free Trade Association in 1961, after Denmark joined as a founding member of the EFTA in 1960. However, Greenland's membership ended in 1973 when Denmark joined the European Communities.

04. Public holidays

05. Types of leave

Paid time off

Public holidays

Sick days

Maternity leave

Paternity leave

Parental leave

Other leave

06. Employment termination

Termination process

Employers are liable for compensation if they terminate salaried employees who have worked for them consistently for 12 years or more, regardless of the dismissal's fairness.


Compensation is determined by the length of work. After 12 years of service, the employee is entitled to a compensation of one month's wages. A compensation of two months' wages will be paid after 15 years of employment. 18 years of age will entitle you to a maximum of three months' income.

Notice period

The length of the employee's continuous employment will determine the length of the employer's notice period; the longer the employment, the longer the notice period.


The following are the employer's statutory notice periods. The notice period is one month if an employee has worked for five months. The notice period is three months if an employee has worked for two years and nine months. The notice period is four months if a person has worked for five years and eight months. The notice period is 5 months if a person has worked for 8 years and 7 months. The notice period is 6 months if the employment duration is longer than 8 years and 7 months. The Salaried Employees Act allows for a maximum notice period of six months. Regardless of the length of employment, the employee may terminate the employment agreement with one month's notice to the end of the month.

Severance pay

Employers are liable for compensation if they terminate salaried employees who have worked for them for 12 years or more in a row, regardless of whether the dismissal was justified. Compensation is determined by the duration of the assignment. After 12 years of service, the employee is entitled to one month's wages as compensation. After 15 years of employment, a compensation of two months' wages will be paid. After 18 years of service, you are entitled to a maximum of three months' pay.

Probation period

There is no general legislation regarding probationary periods in Greenland. Although it is possible to agree on a probationary period of 3 months during which both parties can terminate the agreement with 14 days’ notice.

07. Working hours

General

Normal working hours must not exceed eight hours per day and forty hours per week.

Overtime

Greenland has no general overtime regulations. Numerous contracts state that the salary includes compensation for overtime hours worked. All collective bargaining agreements contain provisions governing overtime pay.

08. Minimum wage

General

People working in Greenland typically earn between 15,156.00 DKK (minimum wage) and 45,204.00 DKK (maximum salary) (highest average).

09. Employee benefits

General

Greenlanders, like residents of all Nordic countries, have the right to free healthcare at the point of use, including prescription medication. Users, on the other hand, pay a portion of the cost of aids and appliances such as prosthetics or glasses. In addition, employers are entitled to a certain amount of free dental care.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Greenland

to hire a team takes time, money, and effort. The labor law in

Greenland

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Greenland

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Greenland

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Greenland

via our Employer of Record / PEO solution.

Ready to get started? Our friendly staff is ready to assist you with all your questions, let's connect.