The Employment Transfer Agreement is a critical document used in Danish business transactions where employees are transferred from one employer to another, typically during mergers, acquisitions, or business restructurings. This document is essential for ensuring compliance with the Danish Transfer of Undertakings Act and related employment legislation, which implements EU Directive 2001/23/EC. The agreement outlines the terms and conditions of the employment transfer, protecting employee rights while facilitating smooth business transitions. It includes detailed provisions on employment continuity, benefit transfers, pension arrangements, and collective agreements where applicable. The document is particularly important in Denmark due to the strong employment protection framework and the significant role of collective agreements in the Danish labor market.
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Key Requirements PROMPT example:
Employment Transfer Agreement
I need an Employment Transfer Agreement under Danish law for the transfer of 50 IT employees from our Copenhagen technology subsidiary to our parent company as part of a group restructuring, with the transfer to be effective from March 1, 2025, including provisions for existing collective agreements and share option schemes.
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1. Parties: Identification of the transferor (current employer), transferee (new employer), and scope of employees covered
2. Background: Context of the transfer, including the business reason and effective date
3. Definitions: Key terms used throughout the agreement, including 'Transfer Date', 'Transferring Employees', 'Employment Terms', etc.
4. Transfer of Employment: Core provisions regarding the transfer of employment relationships, including confirmation of transfer terms
5. Continuity of Employment: Confirmation that employment is continuous and previous service is recognized
6. Terms and Conditions of Employment: Confirmation of maintained employment terms and any permitted variations
7. Employee Benefits: Treatment of existing benefits, pension arrangements, and other employment-related benefits
8. Information and Consultation: Confirmation of compliance with employee information and consultation requirements
9. Data Protection: Provisions for handling employee personal data during and after transfer
10. Liabilities and Indemnities: Allocation of responsibilities and liabilities between transferor and transferee
11. Governing Law and Jurisdiction: Confirmation of Danish law application and jurisdiction
1. Collective Agreements: Required when transferring employees are covered by collective agreements, addressing their continuation or termination
2. Pension Arrangements: Detailed section required when special pension schemes or arrangements need specific handling
3. Share Options and Incentives: Required when transferring employees have existing share options or other incentive schemes
4. Intellectual Property Rights: Required when employees have created or are involved with IP rights
5. Non-Compete and Confidentiality: Required when existing restrictive covenants need to be addressed or new ones implemented
6. International Transfers: Required when the transfer involves cross-border elements
7. Works Council Provisions: Required when works councils are involved in the transfer
1. Schedule 1 - List of Transferring Employees: Detailed list of all employees being transferred, including their current terms and conditions
2. Schedule 2 - Employee Benefits: Detailed description of all employee benefits and their treatment post-transfer
3. Schedule 3 - Collective Agreements: Copies or summaries of relevant collective agreements
4. Schedule 4 - Pension Schemes: Details of current pension arrangements and their treatment
5. Schedule 5 - Outstanding Claims and Litigation: List of any ongoing employment disputes or claims
6. Appendix A - Transfer Timeline: Detailed timeline of the transfer process and key dates
7. Appendix B - Communication Plan: Plan for employee communications and consultation process
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