Severance Agreement
Agreement on ending employment: garden leave, severance, benefits and final settlement.
Jurisdiction: Denmark. Written for Danish law and Danish contract practice.
What is a severance agreement?
Agreement on ending employment: garden leave, severance, benefits and final settlement.
What the document must contain
- Employer, employee, place of work and job title.
- Start date and any probationary period.
- Salary, allowances, pension and payment dates.
- Working hours, holiday and absence.
- Notice periods for both parties.
- Confidentiality, rights to work results and any restrictive covenants.
Relevant legislation
- Funktionærloven:
- Fratrædelsesgodtgørelse og varsler.
- Ferieloven:
- Afvikling og udbetaling af ferie ved fratræden.
References are indicative. LegalDock provides templates, not individualized legal advice.
Frequently asked questions
When must a severance agreement be in place?
Key employment terms must be given in writing no later than seven days after the employment starts, and the remaining information within one month.
What if the terms are not in writing?
The employee may be awarded compensation under the Danish Employment Contracts Act, and ambiguity is usually construed against the employer.
Is the employee a salaried employee?
Salaried status depends on the nature and hours of the work, not on the job title in the contract. Salaried employees have statutory notice periods and sick pay.
Can we agree a non-compete clause?
Only within the Danish Act on Employment Clauses: in writing, for a specially trusted role, up to twelve months after termination and with ongoing compensation.
Can the contract be signed digitally?
Yes. Digital signatures are valid for employment agreements, and both parties receive a copy with an audit trail showing who signed and when.
Guide for this template
The template comes with a step-by-step guide explaining every field and what to watch out for before signing.
Open the guide in the editor →