Separation And Release Agreement Template for Denmark

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Separation And Release Agreement

Document background

The Separation and Release Agreement is a crucial document used in Danish employment relationships when formalizing the termination of employment, whether through mutual agreement, redundancy, or other circumstances. It serves as a comprehensive record of all termination terms and conditions, ensuring compliance with Danish employment legislation, including the Salaried Employees Act (Funktionærloven) and related employment laws. This document is particularly important as it provides legal certainty for both parties by clearly outlining final payments, benefits, ongoing obligations, and mutual releases of claims. The agreement helps prevent future disputes by documenting all aspects of the separation, from final compensation to confidentiality requirements, and is often used in conjunction with corporate restructuring, individual terminations, or voluntary departure programs.

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 period

5. Final Salary and Benefits: Details of final salary payment, including pro-rata payments and outstanding benefits

6. Severance Payment: Terms and amount of any severance payment, including payment date and method

7. Holiday Pay: Calculation and payment of any accrued but unused holiday entitlement

8. Company Property: Requirements for return of company property and confirmation of data deletion

9. Confidentiality Obligations: Ongoing obligations regarding confidential information

10. General Release: Mutual release of claims between parties

11. Tax Implications: Statement on tax treatment of payments and responsibilities

12. Reference and Communications: Agreement on employment references and internal/external communications

13. Governing Law: Confirmation of Danish law application and jurisdiction

14. Acknowledgment: Employee acknowledgment of understanding and voluntary acceptance

Optional Sections

1. Non-Competition Obligations: Include if there are existing or new non-compete restrictions, subject to Danish Act on Non-Competition Clauses

2. Non-Solicitation: Include if there are restrictions on soliciting employees or customers

3. Equity and Stock Options: Include if employee has equity-based compensation that needs to be addressed

4. Pension Arrangements: Include if there are specific pension arrangements that need to be addressed

5. Outplacement Support: Include if the employer is providing career transition services

6. Continuing Benefits: Include if any benefits will continue post-termination

7. Legal Fees: Include if employer is contributing to employee's legal fees

8. Medical Certification: Include if separation involves health-related issues

9. Training Costs Repayment: Include if there are outstanding training costs subject to repayment

Suggested Schedules

1. Schedule 1 - Payment Calculation: 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 - Continuing Obligations: Detailed list of ongoing obligations from the employment contract that survive termination

4. Appendix A - Reference Letter: Agreed form of reference letter

5. Appendix B - Press Release/Communication: Agreed form of internal and external communications regarding the separation

6. Appendix C - Benefits Summary: Summary of treatment of benefits and insurance coverage post-termination

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