Template For Severance Agreements For Employees (Page 2 of 3) in pdf

benefits, attach existing employment agreements and other contracts as annexes.

§ 3a. Severance pay

The employer XX will make a severance payment equal to X months' salary based on the monthly

salary of SEK ....

Comments: Severance payments usually begin when employment has been officially terminated.

Severance pay is usually a lump sum based on the number of months agreed by you and the

employer. Employers usually pay only statutory social insurance on severance pay that corresponds to

an additional 32% on the cost of the salary. Occupational pension premiums are not included. In order

not to generate major tax effects, it is best to allocate the payment of severance pay over more than

one income tax year. If you have a company car or other benefits make sure that, during your

negotiations, the company car is converted into additional salary so as to serve as a basis for

severance pay. Car allowance is determined according to Swedish Tax Agency regulations.

Unemployment insurance counts severance pay as income and the period of unemployment/income

insurance is moved back by as many months as severance pay covers.

§3b. Occupational pension premium

Employer XX must, in addition, pay in pension premiums corresponding to ... monthly salaries to a

pension fund selected by NN.

Comments: Additional occupational pension benefits corresponding to x months' salary should be

paid when the greater part of financial compensation consists of severance pay. This is especially

important if you have high salary and/or are older. Please Note! Occupational pension provision will

be considered as salary by your unemployment insurance fund, which means that the start of the

period when you may claim unemployment insurance/income insurance will be postponed, which you

must take into account.

§4. Professional development

Employer XX will, as support to the employee’s career development, pay SEK…..for professional

competence development inputs against invoice from training providers selected by NN.

Comments: In connection with redundancy, employers do not pay social insurance contributions on

costs for competence development, which is why the gross amount (i.e. the employer's total salary

costs) can be used to fund such activities. It is beneficial for you and cost neutral to the employer. This

may only be applied during the employment period and costs will be paid against invoice. Please note

that training costs can be presented without VAT. VAT will always be added so total costs should be

included in the claim. Likewise, it should be stated that any travel, accommodation and literature costs

are included.

§5. Holiday entitlement

With the final salary, salary for holiday entitlement (i.e. unused holiday days) and holiday days accrued

during the notice period will be paid.

Comment: Saved holiday days, and holidays earned during the notice period, are normally paid with

the final salary. Employers are not permitted to include holiday days in the notice period if the notice

period is less than six months. If notice periods are longer than six months, employers may allocate

holiday days in the period that exceeds six months. You and your employer may always agree on

other solutions as to how your holiday days are to be scheduled.

Template For Severance Agreements For Employees Page 2