Director Employment Agreement Template for Denmark

The Director Employment Agreement is a crucial document used when appointing executive-level directors in companies operating under Danish law. It serves as the primary contractual framework governing the employment relationship between a company and its executive directors, who hold a special legal status under Danish corporate law. This agreement is distinct from standard employment contracts as directors are generally exempt from the Danish Salaried Employees Act and are instead subject to specific corporate governance requirements. The document typically requires board approval and must comply with various Danish regulatory requirements, including those related to remuneration policies, corporate governance codes, and financial sector regulations where applicable. It's essential for establishing clear terms of employment, responsibilities, compensation structures, and termination provisions while protecting both the company's interests and the director's rights.

1. Parties: Identification of the company and the director, including full legal names and addresses

2. Background: Context of the appointment and any relevant corporate approvals

3. Definitions: Key terms used throughout the agreement

4. Appointment and Term: Position title, effective date, and duration of appointment

5. Duties and Responsibilities: Scope of role, reporting lines, and key responsibilities

6. Time Commitment and Location: Working hours, place of work, and travel requirements

7. Remuneration: Base salary, review process, and payment terms

8. Bonus and Incentives: Short-term and long-term incentive arrangements

9. Benefits: Insurance, pension, car allowance, and other benefits

10. Expenses: Business expense reimbursement policy

11. Holidays and Leave: Vacation entitlement and other leave provisions

12. Illness and Incapacity: Sick leave terms and medical examination requirements

13. Confidentiality: Protection of company confidential information

14. Intellectual Property: Ownership and protection of IP created during employment

15. Data Protection: Processing of personal data and GDPR compliance

16. Non-Competition: Post-employment competition restrictions

17. Non-Solicitation: Restrictions on soliciting employees or customers

18. Termination: Grounds for termination and notice periods

19. Garden Leave: Company's right to place director on garden leave

20. Return of Property: Obligations regarding company property upon termination

21. Governing Law and Jurisdiction: Application of Danish law and dispute resolution