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Work Separation Agreement Template for Denmark

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Key Requirements PROMPT example:

Work Separation Agreement

I need a Work Separation Agreement under Danish law for a senior software developer who will be leaving amicably on March 1, 2025, but continuing as a part-time consultant for 6 months; the agreement should include standard confidentiality terms and provisions for the consulting arrangement.

Document background
The Work Separation Agreement serves as a comprehensive legal document used in Denmark to formalize the mutually agreed terms of employment termination. It is typically used when an employer and employee agree to end their employment relationship, whether through voluntary separation, redundancy, or negotiated departure. The agreement provides legal certainty for both parties by clearly documenting all aspects of the separation, including financial terms, continuing obligations, and releases of claims. This document must comply with Danish employment law, including the Danish Salaried Employees Act, collective agreements, and data protection requirements. It's particularly important for senior positions or situations involving sensitive departures, ensuring all parties have clarity on their rights and obligations post-employment.
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 separation (if mutually agreed)

3. Definitions: Key terms used throughout the agreement

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

5. Final Salary and Benefits: Details of final salary payment, including overtime, bonus, and benefits up to the termination date

6. Holiday Pay: Calculation and payment of remaining holiday entitlement under the Danish Holiday Act

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

8. Confidentiality Obligations: Ongoing obligations regarding confidential information

9. Final Settlement: Comprehensive overview of all final payments and benefits

10. Tax Treatment: Tax implications and handling of various payment components

11. Release of Claims: Mutual release of claims, subject to Danish law restrictions

12. Reference: Agreement on employment references and handling of future employment inquiries

13. Governing Law: Specification of Danish law as governing law and jurisdiction

14. Signatures: Execution provisions and signature blocks

Optional Sections

1. Severance Payment: Additional severance payment beyond statutory requirements, used when offering enhanced separation terms

2. Non-Competition Clause: Restrictions on future employment, if applicable and compliant with Danish law

3. Non-Solicitation Provisions: Restrictions on soliciting employees or customers, if applicable

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

5. Share Options/Awards: Treatment of existing share options or awards, if applicable

6. Insurance Continuation: Details of any post-employment insurance coverage

7. Communications: Agreed approach to internal and external communications about the separation

8. Garden Leave: Terms of any garden leave period before final termination

9. Pension Arrangements: Special provisions regarding pension schemes, if applicable

10. Legal Fees: Agreement on payment of legal fees for review of the agreement

Suggested Schedules

1. Schedule 1 - Final Payment Calculation: Detailed breakdown of all final payments including salary, holiday pay, and any special payments

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

3. Schedule 3 - Benefit Details: Detailed description of benefit termination dates and any continuation provisions

4. Schedule 4 - Share Option Details: Details of any share options or awards and their treatment

5. Appendix A - Employee Statement: Required statements under Danish law regarding acceptance of terms

6. Appendix B - Data Privacy Notice: GDPR-compliant notice regarding handling of personal data post-employment

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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