With the revision of the Working Environment Act (WEA) in 1975 the psychological working environment was included in the law, as the law “must aim to ensure a safe and healthy physical and psychological working environment”, cf. § 1, no. 1. Thus, risks to workers mental health (either direct risks or long-term influences) which have a direct link to the work or the execution of work are covert. The WEA is a framework law with few to none specific provisions. In 2020 Denmark got its first executive order on psychological working environment (EOPW) entailing detailed regulation in addition to the WEA.

The legislation only provides preventive measures on work-related psychosocial risk factors that arise directly or indirectly from the individual's work function. Psychosocial problems that have a direct background in management's overall decisions about the company, and in interaction with management, employees, their representatives, as well as employees' mutual or factors arising from relationships outside the company, are not covered by the law. Those psychosocial problems must be resolved between the social partners.

This means, that disputes can be brought forward to either the work environment appeal board (WEAB) (lack of compliance with the legislation), the employment court (abuse of the managerial authority) and the civil/tort court (claims of compensation).