Employee Release Form

Employee Release Form Template for Denmark

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Document background

The Employee Release Form is a crucial document in Danish employment law, used when an employment relationship is being terminated through mutual agreement or as part of a negotiated departure. It serves multiple purposes: documenting the terms of separation, protecting both employer and employee interests, and ensuring compliance with Danish employment regulations. The document typically includes details about final compensation, treatment of benefits, holiday pay calculations, and any post-employment obligations. It's particularly important in Denmark due to specific legal requirements regarding employment termination, including mandatory notice periods, holiday pay calculations, and pension arrangements. The form should be drafted in compliance with the Danish Salaried Employees Act, Danish Contracts Act, and other relevant employment legislation, making it a legally robust document that provides clarity and certainty for all parties involved.

Suggested Sections

1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant identification numbers

2. Background: Brief context of the employment relationship, including start date and position

3. Definitions: Key terms used throughout the agreement, including 'Termination Date', 'Settlement Amount', and other relevant terms

4. Termination of Employment: Formal statement of employment termination, including the effective date and immediate release of duties

5. Settlement Payment: Details of the final settlement amount, including base salary, pro-rated bonuses, and statutory payments

6. Holiday Pay and Time Off: Calculation and payment of accumulated holiday pay and unused vacation days as per the Danish Holiday Act

7. Company Property: Requirements for returning company property and terminating access to company systems

8. Final Payroll Matters: Details about final salary payment, tax deductions, and pension contributions

9. Confidentiality Obligations: Ongoing confidentiality obligations post-employment

10. Full and Final Settlement: Confirmation that the agreement represents a full and final settlement of all claims

11. Applicable Law: Specification that the agreement is governed by Danish law

Optional Sections

1. Non-Competition Clause: Include when the employee was subject to non-compete restrictions and these need to be addressed in the release

2. Reference and Communication: Include when parties agree on specific terms about employment references and communication about the departure

3. Outplacement Services: Include when the employer is providing career transition support

4. Stock Options/Share Programs: Include when the employee participates in company share schemes that need to be addressed

5. Ongoing Benefits: Include when certain benefits will continue post-employment

6. Legal Representation: Include when the employee has had the opportunity to seek legal counsel

7. Post-termination Assistance: Include when the employee agrees to provide assistance with handover or future queries

Suggested Schedules

1. Schedule 1 - Settlement Calculation: Detailed breakdown of all payment components including salary, holiday pay, and other benefits

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

3. Schedule 3 - Benefits Summary: Summary of any benefits and their treatment post-termination

4. Appendix A - Data Protection Statement: Details about the handling of employee's personal data post-employment in compliance with GDPR

5. Appendix B - Reference Letter Template: If agreed, the approved format and content of employment reference

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