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A Severance Agreement sets out the terms when an employee and employer part ways in Denmark, typically offering extra pay or benefits beyond what Danish labor law requires. These agreements help both sides achieve a clean break while protecting the company's interests through provisions like confidentiality clauses and competition restrictions.

Under Danish employment regulations, these agreements often include specific elements like holiday pay settlements, pension arrangements, and rules about future employment references. Companies commonly use them during restructuring or when ending employment relationships with senior staff members, offering additional compensation in exchange for the employee waiving certain rights to future claims.

Consider using a Severance Agreement when ending employment relationships in Denmark, especially during restructuring, voluntary departures, or leadership changes. These agreements become particularly valuable when dealing with senior executives, employees with access to sensitive information, or situations where maintaining confidentiality is crucial.

The timing works best when offered before the formal termination notice, giving both parties room to negotiate terms. Danish companies often use these agreements to prevent potential disputes, protect trade secrets, and ensure smooth transitions. They're especially useful when offering packages above the mandatory requirements or when including non-compete clauses and reference arrangements.

• Severance Pay Agreement: Basic agreement focusing on financial terms and standard separation conditions
• Executive Severance Agreement: Enhanced package for senior leaders with additional benefits and complex compensation structures
• Confidentiality And Non Disparagement Agreement: Emphasizes protection of company information and reputation
• Job Separation Agreement: Comprehensive agreement covering all separation aspects, including transition duties
• Non Disparage Agreement: Focused specifically on maintaining professional conduct and protecting company reputation post-employment

• HR Directors and Managers: Draft initial agreements, coordinate terms with legal team, and manage the negotiation process
• Employment Lawyers: Review and refine Severance Agreements to ensure compliance with Danish labor laws and protect client interests
• Senior Executives: Often both negotiate and approve agreements for departing employees, while sometimes being subject to executive-level agreements themselves
• Department Heads: Provide input on specific terms related to their team members and help implement transition plans
• Union Representatives: Review agreements when collective bargaining agreements apply and protect member interests
• Departing Employees: Review, negotiate, and ultimately sign the agreement, often with legal counsel assistance

• Employment Details: Gather current salary, benefits, start date, and position details from HR records
• Severance Package: Calculate total compensation, including holiday pay, pension contributions, and any additional benefits
• Notice Period: Confirm notice requirements under Danish law and existing employment contract
• Company Assets: List all items for return, including devices, access cards, and confidential materials
• Restrictive Clauses: Define non-compete and confidentiality terms that align with Danish regulations
• Legal Requirements: Use our platform to generate a compliant agreement that includes all mandatory elements under Danish law
• Timeline: Set clear dates for payment schedules, final workday, and document signing

• Party Information: Full legal names, addresses, and roles of employer and employee
• Compensation Terms: Detailed breakdown of severance pay, benefits, and payment schedule
• Release Clause: Clear statement waiving future claims under Danish employment law
• Holiday Pay Settlement: Calculation and payment terms for unused holiday entitlements
• Confidentiality Terms: Specific obligations regarding company information protection
• Competition Restrictions: Any non-compete or non-solicitation provisions aligned with Danish regulations
• Reference Agreement: Terms for future employment references and communication
• GDPR Compliance: Data handling and retention policies under EU privacy laws
• Signature Block: Date, place, and spaces for both parties' signatures

While both serve to formalize relationships, a Severance Agreement differs significantly from a Confidentiality Agreement in several key aspects. The main distinction lies in their primary purpose and timing of use in the employment relationship.

• Primary Purpose: Severance Agreements handle employment termination and compensation, while Confidentiality Agreements focus solely on protecting sensitive information
• Timing: Severance Agreements come into play at employment end, whereas Confidentiality Agreements typically start during employment and continue afterward
• Scope of Protection: Severance Agreements cover multiple aspects including financial terms, benefits, and legal releases, while Confidentiality Agreements specifically address information protection
• Compensation Elements: Severance Agreements include specific payment terms and benefits, but Confidentiality Agreements rarely involve direct compensation
• Duration: Severance Agreements usually have a finite settlement period, while Confidentiality Agreements often remain in force indefinitely