Termination Employment Contract Template for Denmark

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Termination Employment Contract

Document background
The Termination Employment Contract is a crucial document used in Danish employment relationships when formalizing the end of an employment arrangement, whether through mutual agreement, redundancy, or other circumstances. This document is essential for ensuring compliance with Danish employment law, particularly the Danish Salaried Employees Act (Funktionærloven) and related employment legislation. It should be used whenever an employment relationship is terminated to document the agreed terms, protect both parties' interests, and ensure all legal requirements are met. The contract typically includes provisions for notice periods, final salary calculations, holiday pay, benefit termination, company property return, and any post-employment obligations. It may also address specific circumstances such as garden leave, severance payments, or ongoing project handovers. This document is particularly important in the Danish context due to the specific requirements of local employment law and the strong emphasis on protecting employee rights while providing clarity for employers.
Suggested Sections

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

2. Background: Brief context of the employment relationship and reason for termination (ensuring compliance with Danish law regarding fair dismissal)

3. Definitions: Key terms used throughout the agreement

4. Termination Date: Specific date of employment termination and last working day

5. Notice Period: Details of the notice period as per Danish Salaried Employees Act or employment contract

6. Final Salary and Benefits: Calculation and payment terms for final salary, unused holiday pay, and other statutory entitlements

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

8. Confidentiality: Ongoing obligations regarding confidential information

9. Final Settlement: Confirmation that the agreement represents full and final settlement of all claims

10. Applicable Law: Confirmation that the agreement is governed by Danish law

11. Signatures: Execution blocks for both parties

Optional Sections

1. Garden Leave: Include when employee is placed on garden leave during notice period

2. Severance Payment: Include when additional severance payment beyond statutory requirements is offered

3. Reference Letter: Include when terms for providing a reference letter are agreed

4. Non-Competition/Non-Solicitation: Include when post-employment restrictions apply and comply with Danish Act on Non-Competition Clauses

5. Ongoing Projects: Include when handover of specific projects or responsibilities is required

6. Stock Options/Bonus: Include when addressing treatment of outstanding stock options or bonus payments

7. Legal Assistance: Include when employer provides compensation for employee's legal counsel

8. Tax Implications: Include when special tax considerations need to be addressed

9. Outplacement Support: Include when outplacement services are offered

Suggested Schedules

1. Schedule 1 - Calculation of Final Payment: Detailed breakdown of final salary, holiday pay, and other entitlements

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

3. Schedule 3 - Benefits Termination Schedule: Timeline and details for termination of various benefits

4. Appendix A - Reference Letter Draft: If agreed, the approved form of reference letter

5. Appendix B - Ongoing Projects Status: Details of projects requiring handover and status report

Authors

Relevant legal definitions
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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