Employee Transfer Agreement Template for Denmark

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Employee Transfer Agreement

Document background
The Employee Transfer Agreement is a crucial document used in Danish business transactions where employees are being transferred between legal entities, whether as part of a business transfer, corporate restructuring, or internal reorganization. This agreement ensures compliance with Danish employment law, particularly the Act on Transfer of Undertakings and related employment regulations. It addresses essential aspects such as continuation of employment terms, transfer of benefits, handling of personal data, and treatment of collective agreements. The document is specifically designed to protect employee rights while facilitating smooth workforce transitions, incorporating mandatory requirements under Danish law including notice periods, pension arrangements, and holiday entitlements. It's particularly relevant in scenarios involving business sales, outsourcing arrangements, or group-level reorganizations where employee rights must be preserved.
Suggested Sections

1. Parties: Identification of the current employer (transferor), new employer (transferee), and the transferring employee(s)

2. Background: Context of the transfer, including the business reason for the transfer and reference to any master agreement or business transfer agreement if applicable

3. Definitions: Definitions of key terms used throughout the agreement, including Transfer Date, Employment Terms, and any other relevant terminology

4. Transfer of Employment: Core terms of the transfer, including the effective date and confirmation that employment will transfer on existing terms and conditions

5. Continuation of Employment Terms: Detailed description of how existing employment terms and conditions will be maintained or modified, including salary, benefits, and seniority

6. Employee Benefits and Entitlements: Treatment of accrued benefits, holiday pay, bonus schemes, and other entitlements

7. Obligations of the Transferor: Responsibilities of the current employer before and during the transfer process

8. Obligations of the Transferee: Responsibilities of the new employer in maintaining employment terms and ensuring smooth transition

9. Data Protection: Provisions for handling employee personal data in compliance with GDPR and Danish data protection laws

10. Governing Law and Jurisdiction: Confirmation that the agreement is governed by Danish law and subject to Danish courts' jurisdiction

Optional Sections

1. Collective Agreements: Required when transferred employees are covered by collective agreements, detailing how these will be handled post-transfer

2. Pension Arrangements: Required when specific pension schemes need to be addressed or transferred

3. Restrictive Covenants: Required when existing non-compete or confidentiality agreements need to be transferred or modified

4. Integration Provisions: Optional section detailing specific integration plans or measures when employees are being integrated into an existing workforce

5. Share Options and Long-Term Incentives: Required when employees have existing share options or long-term incentive plans that need to be addressed

6. Works Council/Union Consultation: Required when the transfer involves employees subject to works council or union representation

Suggested Schedules

1. Schedule 1 - Transferring Employees: List of transferring employees with their current positions and key employment terms

2. Schedule 2 - Current Employment Terms: Detailed documentation of existing employment terms and conditions for each transferring employee

3. Schedule 3 - Employee Benefits: Comprehensive list of current benefits and their treatment post-transfer

4. Schedule 4 - Transferred Liabilities: List of employment-related liabilities being transferred to the new employer

5. Appendix A - Required Notices and Communications: Templates for employee communications and statutory notices required under Danish law

6. Appendix B - Timeline and Process: Detailed timeline of the transfer process including key dates and milestones

Authors

Relevant legal definitions
Clauses
Relevant Industries
Relevant Teams
Relevant Roles
Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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