Template For Severance Agreements For Employees printable pdf download

Template for severance agreements for employees,

with comments

This is a template for severance agreements for employees who are concluding their employment by

agreement incorporating points that are important to include in such agreements.

The following agreement has been reached between the employer (company name, Corporate

ID No. and address) and NN (Personal Registration No).

Comments: It is important to establish in the parties' identities in the agreement. Usually the corporate

ID and personal registration numbers are enough. If this concerns a foreign company that does not

have operations in Sweden, their address and authorized signatories must be stated instead.

§1. Employment ceases

The Parties agree that NN's employment will cease on ... (day / month / year).

Comments: We strongly advise you against stating that you have resigned in a severance agreement.

This may affect other benefits such as unemployment insurance and income insurance. Termination of

employment due to redundancy must be stated in the contract. Minutes of negotiations verifying

redundancy due to lack of work is necessary for you to be able to participate in Job Security

Foundation measures.

A settlement is usually agreed because there is no just cause for termination of your employment. You

and the employer are to agree/negotiate a period of notice and possibly severance pay.

§2. Period of notice

During the notice period NN will receive full salary and employment benefits, is not required to work

and is entitled to take other employment or assignments without deduction of agreed sums and

benefits.

Comments: During the notice period, the employer pays full employee benefits including occupational

pension. The right to take other employment without deduction from agreed benefits means that,

during the period of notice, you are exempted from work and able to take other employment while

retaining employment benefits according to this agreement. If you have a valid non-competition clause

in your employment contract, there are restrictions on the jobs you may take. It is possible to remove

the entire competition clause or part of it through negotiation.

An employer may require offsetting, which means that your earnings are coordinated. Full employment

benefits means that you retain your monthly salary, pension contributions, and other benefits you were

awarded as part of your employment. Normal praxis in a severance agreement is to return the

company car and increase the monthly salary accordingly. The Swedish Tax Agency has a list of

company cars that forms a good guide for setting the proper amount, see The

employer's costs for monthly salaries are salary plus about 50% for the statutory and collectively

agreed social insurance contributions (the largest contributions in the collective agreement are often

occupational pension and insurance). So that no ambiguity will occur as concerns your employment

Template For Severance Agreements For Employees