Template For Severance Agreements For Employees


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
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


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