Denmark's famous labour market model - Flexicurity - is widely admired for its ability to reflect the needs of employers while, at the same time, safeguarding the welfare of employees.

The model has three core elements:

1. Employers can hire and fire at will, without excessive costs for dismissing employees. Litigation surrounding dismissals is uncommon.

2. Employees who join and pay subscription fees to an A-kasse (unemployment insurance fund) get up to two years' dagpenge (unemployment benefit) after losing their jobs.

3. The Danish government runs education and retraining programs and provides counselling services to get unemployed people back to work as quickly as possible.

Furthermore, the Danish state provides subsistence allowance kontanthjælp (subsistence payments) for people who lose their livelihood due to illness, divorce or unemployment, and who does not qualify under other social welfare schemes such as pension or unemployment benefit.