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This Severance Payment Agreement template is designed for use under Danish employment law when an organization needs to formalize the termination of employment and associated severance arrangements. The document is particularly relevant when implementing mutually agreed separations or redundancies, ensuring compliance with Danish labor regulations and the "flexicurity" model. It includes comprehensive details about severance payments, notice periods, holiday pay, and other entitlements as required by Danish law. The agreement serves to protect both parties' interests by clearly documenting all termination terms, helping prevent future disputes, and ensuring proper handling of tax implications and social security contributions. This template should be customized based on the specific circumstances of the termination, the employee's seniority, and any applicable collective agreements.

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

2. Background: Brief context of the employment relationship and the circumstances leading to the severance agreement

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

4. Termination Date: Specific date when the employment relationship officially ends

5. Severance Payment: Details of the severance amount, calculation method, payment date(s), and tax treatment

6. Final Salary and Benefits: Treatment of final salary payment, accrued holiday pay, and other benefits

7. Company Property: Requirements for returning company property and handling of company information

8. Confidentiality: Ongoing obligations regarding confidential information

9. Tax and Social Security: Tax treatment of payments and responsibility for social security contributions

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

11. Governing Law: Confirmation that the agreement is governed by Danish law

12. Signatures: Execution block for both parties