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Termination Addendum

Termination Addendum Template for Denmark

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Termination Addendum

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Document background
The Termination Addendum is essential documentation used when formally ending an employment relationship under Danish law. It is typically implemented when both parties have agreed to terminate employment or when unilateral termination occurs according to Danish employment regulations. The document serves as an amendment to the original employment contract, detailing crucial aspects such as the termination date, notice period arrangements, final salary calculations, holiday pay settlements, and post-employment obligations. This addendum must comply with Danish employment legislation, including the Danish Salaried Employees Act (Funktionærloven), the Danish Holiday Act, and other relevant regulations. It provides legal certainty for both parties and helps prevent future disputes by clearly documenting all termination terms and conditions.
Suggested Sections

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

2. Background: Reference to the original employment agreement, its date, and the context leading to termination

3. Definitions: Key terms used in the addendum, including reference to defined terms from the original employment agreement

4. Termination Date: Clear specification of the last day of employment and any garden leave period

5. Final Salary and Benefits: Details of final salary payment, including regular salary, bonuses, and benefits up to the termination date

6. Holiday Pay Settlement: Calculation and payment terms for accrued holiday pay under the Danish Holiday Act

7. Company Property: Requirements and timeline for returning company property

8. Confidentiality: Confirmation of ongoing confidentiality obligations post-termination

9. Full and Final Settlement: Mutual release of claims and confirmation that the agreement represents a full and final settlement

10. Governing Law: Confirmation that the addendum is governed by Danish law

11. Signatures: Execution block for both parties

Optional Sections

1. Garden Leave: Used when the employee is placed on garden leave during the notice period

2. Non-Compete and Non-Solicitation: Include when enforcing or modifying existing post-employment restrictions

3. Reference: Terms regarding the provision of employment references

4. Severance Payment: Include when additional severance beyond statutory requirements is being offered

5. Share Options/Awards: Treatment of outstanding share options or awards

6. Tax Indemnity: Include when complex compensation arrangements necessitate tax clarifications

7. Communications: Agreement on internal/external communications about the termination

8. Legal Costs: Include when there's an agreement to cover the employee's legal costs

Suggested Schedules

1. Schedule 1 - Payment Calculation: Detailed breakdown of final payment including salary, holiday pay, and any severance

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

3. Schedule 3 - Benefits Summary: Details of benefit termination dates and any continuation provisions

4. Appendix A - Original Employment Agreement: Copy of the referenced employment agreement

5. Appendix B - Share Option Statement: Statement of outstanding share options and their treatment

6. Appendix C - Data Processing Statement: Information about the handling of personal data post-termination

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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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