Overseas Employment Contract

Overseas Employment Contract Template for Denmark

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Document background

The Overseas Employment Contract is essential for Danish companies deploying employees to international locations. This document is used when a Danish employer assigns an employee to work in another country while maintaining the employment relationship under Danish law. It addresses critical aspects required by the Danish Act on Employment Contracts (Ansættelsesbevisloven) while incorporating international elements such as expatriate benefits, host country requirements, and cross-border tax implications. The contract is particularly important for ensuring clear terms of employment, protecting both parties' interests, and maintaining compliance with both Danish and international employment regulations. It should be used whenever a Danish company sends an employee abroad for periods typically exceeding six months, requiring comprehensive documentation of modified employment terms and additional overseas benefits.

Suggested Sections

1. Parties: Identification of the employer (Danish company) and the employee, including full legal names and addresses

2. Background: Context of the overseas employment arrangement and the purpose of the assignment

3. Definitions: Key terms used throughout the contract, including 'Host Country', 'Assignment Period', 'Home Country' etc.

4. Position and Duties: Job title, role description, reporting lines, and key responsibilities in the overseas position

5. Duration of Assignment: Start date, expected duration, and any provisions for extension or early termination

6. Place of Work: Primary work location, host country details, and any mobility requirements

7. Working Hours: Standard working hours, overtime provisions, and local work schedule requirements

8. Salary and Benefits: Base salary, currency, payment method, and timing of payments

9. Overseas Allowances: Additional payments related to overseas posting including housing, cost of living, and hardship allowances

10. Tax and Social Security: Tax obligations, social security arrangements, and any tax equalization policies

11. Leave Entitlements: Annual leave, public holidays (both Danish and local), sick leave, and other leave entitlements

12. Travel and Relocation: Travel arrangements, relocation assistance, and home leave provisions

13. Insurance Coverage: Health insurance, life insurance, and other mandatory insurance requirements

14. Termination Provisions: Notice periods, grounds for termination, and repatriation arrangements

15. Governing Law: Specification of Danish law as governing law and jurisdiction for disputes

Optional Sections

1. Spouse and Family Support: Support for accompanying family members, including education assistance and spouse career support. Include when employee is relocating with family.

2. Language Training: Provisions for language training in the host country language. Include when working in non-English speaking countries.

3. Security Provisions: Special security arrangements and evacuation procedures. Include for high-risk locations.

4. Intellectual Property: Specific IP provisions relevant to the host country. Include for technical or creative roles.

5. Post-Assignment Provisions: Guaranteed position upon return and reintegration support. Include for long-term assignments.

6. Split Payroll Arrangements: Details of salary payments split between home and host country. Include when applicable to tax optimization.

7. Commission Structure: Details of any sales or performance-based commission schemes. Include for sales or executive roles.

Suggested Schedules

1. Schedule 1 - Compensation Package: Detailed breakdown of salary, allowances, and benefits including calculations and payment schedules

2. Schedule 2 - Job Description: Detailed description of role, responsibilities, and performance expectations

3. Schedule 3 - Relocation Policy: Company's detailed relocation policy and benefits

4. Schedule 4 - Tax Equalization Policy: Detailed policy on tax equalization if applicable

5. Appendix A - Insurance Coverage Details: Specific details of all insurance coverage provided

6. Appendix B - Emergency Contact Procedures: Emergency protocols and contact information in both home and host country

7. Appendix C - Required Documentation: List of required visas, permits, and other legal documentation

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