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Employer Separation Agreement

Employer Separation Agreement Template for Denmark

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Employer Separation Agreement

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Document background
The Employer Separation Agreement is a crucial document used in Danish employment relationships when formalizing the termination of employment, whether through mutual agreement, redundancy, or other circumstances. This document is essential for ensuring compliance with Danish employment law, including the Salaried Employees Act (Funktionærloven), the Holiday Act, and data protection regulations. It provides a comprehensive framework for managing the separation process, detailing all financial aspects, ongoing obligations, and post-employment restrictions. The agreement is particularly important in Denmark's 'flexicurity' model, which combines employment flexibility with social security. It should address specific Danish requirements regarding notice periods, holiday pay, pension arrangements, and any applicable collective agreement provisions. The document serves to protect both employer and employee interests while minimizing the risk of future disputes.
Suggested Sections

1. Parties: Identification of the employer and employee, including full legal names and addresses

2. Background: Brief context of the employment relationship, including start date, position, and reason for separation

3. Definitions: Key terms used throughout the agreement

4. Termination Date: Specification of the last day of employment and any garden leave provisions

5. Final Salary and Benefits: Details of final salary payment, including any pro-rata calculations and treatment of benefits

6. Holiday Pay Settlement: Calculation and payment of outstanding holiday pay under the Danish Holiday Act

7. Severance Payment: Details of any severance payment, including amount, timing, and tax treatment

8. Company Property: Requirements for returning company property and timeline

9. Confidentiality Obligations: Ongoing obligations regarding confidential information

10. Full and Final Settlement: Mutual release of claims and waiver provisions

11. Tax and Social Security: Treatment of tax and social security contributions on payments

12. Governing Law: Confirmation of Danish law as governing law and jurisdiction

13. Signatures: Execution provisions and signature blocks

Optional Sections

1. Post-Employment Restrictions: Non-compete and non-solicitation provisions, if applicable under Danish law

2. Equity Compensation: Treatment of stock options, RSUs, or other equity-based compensation

3. Reference and Communication: Agreement on employment references and internal/external communication about the separation

4. Outplacement Support: Details of any career transition services provided

5. Pension Arrangements: Special provisions regarding pension schemes or early retirement

6. International Aspects: Additional provisions for employees with international responsibilities or benefits

7. Collective Agreement Provisions: Specific provisions required under applicable collective agreements

8. Directors Resignation: Required for employees who also held director positions

9. Data Protection: Specific provisions regarding handling of personal data post-employment

Suggested Schedules

1. Schedule 1 - Payment Summary: Detailed breakdown of all payments including final salary, severance, and holiday pay

2. Schedule 2 - Company Property List: Itemized list of company property to be returned

3. Schedule 3 - Benefits Summary: Detailed list of benefits and their treatment post-termination

4. Schedule 4 - Share Options Statement: Details of outstanding equity compensation and vesting schedules

5. Appendix A - Resignation Letter: Form of resignation letter if required

6. Appendix B - Release Agreement: Detailed release of claims document if separate from main agreement

Authors

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Relevant legal definitions
Agreement
Company
Confidential Information
Effective Date
Employee
Employment Contract
Final Salary
Garden Leave
Holiday Pay
Notice Period
Party/Parties
Personal Data
Position
Release
Resignation Date
Severance Payment
Termination Date
Trade Secrets
Variable Compensation
Vested Rights
Working Day
Applicable Collective Agreement
Company Property
Pension Scheme
Post-Employment Restrictions
Share Options
Accrued Holiday
Professional Contacts
Intellectual Property Rights
Group Companies
Relevant Industries
Relevant Teams
Relevant Roles
Industries
Danish Salaried Employees Act (Funktionærloven): Primary legislation governing employment relationships for white-collar workers, including notice periods, severance pay, and basic employment conditions
Danish Holiday Act (Ferieloven): Regulates holiday entitlements and holiday pay, which must be settled upon termination
Danish Data Protection Act (Databeskyttelsesloven): Implementation of GDPR in Denmark, governing how personal data should be handled during and after employment
Danish Act on Non-Competition Clauses (Ansættelsesklausulloven): Regulates post-employment restrictions including non-compete and non-solicitation clauses
Danish Equal Treatment Act (Ligebehandlingsloven): Ensures non-discrimination and equal treatment in employment matters including termination
Danish Act on the Employer's Obligation to Inform Employees of the Conditions Applicable to the Employment Relationship: Specifies requirements for documenting employment terms and conditions, including termination arrangements
Danish Stock Option Act (Aktieoptionsloven): Regulates treatment of stock options and other equity-based compensation upon separation
Danish Personal Data Act (Persondataloven): Additional regulations regarding handling of personal information during the separation process
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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