Document background
A Full and Final Settlement Agreement is a crucial document used in Danish employment law when parties wish to conclusively resolve all matters relating to an employment relationship and its termination. This document is typically used when employment is terminated by mutual agreement, following a dispute, or as part of a negotiated exit. It comprehensively addresses all potential claims, obligations, and rights between the parties, ensuring compliance with Danish legislation including the Salaried Employees Act (Funktionærloven) and Contracts Act (Aftaleloven). The agreement provides certainty and finality by including detailed terms about financial settlements, tax treatment, confidentiality requirements, and mutual releases, while ensuring all statutory requirements under Danish law are met.
