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Departure Letter Template for Denmark

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Departure Letter

Document background
The Departure Letter is a crucial document in Danish employment practice, used when an employment relationship is being terminated, whether through mutual agreement, resignation, or dismissal. This document serves as an official record of the termination arrangements and ensures compliance with Danish employment law, particularly the Danish Salaried Employees Act (Funktionærloven). The letter typically includes essential information about notice periods, final salary calculations, holiday pay, benefit treatments, and any special arrangements agreed upon between the parties. A well-drafted Departure Letter is vital for avoiding potential disputes and ensuring a clear understanding of the separation terms while maintaining compliance with Danish employment regulations. It's particularly important given Denmark's comprehensive employee protection framework and the formal nature of employment termination procedures.
Suggested Sections

1. Opening Details: Employee's name, address, and other identifying information including employee number if applicable

2. Confirmation of Termination: Clear statement of employment termination, including the effective date and reference to any prior discussions

3. Notice Period: Details of the notice period, including start and end dates, and any garden leave arrangements

4. Final Salary and Benefits: Information about final salary payment, including regular salary, overtime, and other statutory payments

5. Holiday Pay: Calculation and payment of any accrued holiday pay under the Danish Holiday Act

6. Company Property: Instructions regarding the return of company property and timeline for return

7. Final Settlement Details: Overview of all final payments and timing of such payments

8. Reference Provision: Confirmation of the company's policy regarding employment references

9. Acknowledgment: Space for both parties to sign and date the letter

Optional Sections

1. Severance Payment: Details of any severance package beyond statutory requirements, used when additional compensation is offered

2. Bonus Treatment: Information about pro-rata bonus payments or treatment of existing bonus schemes, included if relevant to the employee

3. Pension Arrangements: Details about the treatment of pension contributions and benefits, required if employee has company pension

4. Share Options/Incentives: Treatment of existing share options or other incentive schemes, included for employees with such benefits

5. Non-Compete/Non-Solicitation: Details of any post-employment restrictions, included if such covenants are in place

6. Outplacement Support: Details of any career transition support offered, included if such support is being provided

7. Medical Insurance: Information about continuation or termination of health insurance benefits, if applicable

8. Release Clause: Mutual release of claims, included when seeking a clean break arrangement

Suggested Schedules

1. Payment Calculation Schedule: Detailed breakdown of all final payments including salary, holiday pay, and any additional benefits

2. Benefits Summary: Comprehensive list of benefits and their treatment post-termination

3. Company Property Checklist: Itemized list of company property to be returned

4. Share Option Statement: Detailed statement of share options and their treatment, if applicable

Authors

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Relevant Industries
Relevant Teams
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Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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