The Severance Letter Template Free is a essential document used when terminating employment relationships in England and Wales. It serves as a formal communication tool that outlines the terms of separation, including financial arrangements, notice periods, and post-employment obligations. The template is designed to comply with UK employment legislation, including the Employment Rights Act 1996 and the Equality Act 2010, while providing clear information about severance payments, tax implications, and the return of company property. This document is particularly crucial for ensuring legal compliance and maintaining professional relationships during employment termination.
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1. Date and Address Block: Formal letter heading with employee's details and date
2. Termination Date: Clear statement of when employment will end
3. Payment Details: Breakdown of final salary, notice pay, and severance amount
4. Tax Treatment: Explanation of tax implications for different payment elements
5. Company Property: Requirements for returning company assets
6. Reference Provision: Details about future employment references
1. Garden Leave: Used when employee will not work during notice period but remains employed
2. Post-Employment Restrictions: Reminder of existing restrictive covenants that continue after employment
3. Outplacement Support: Details of career transition services offered by the company
1. Payment Calculation Schedule: Detailed breakdown of all payment components including salary, notice pay, and statutory payments
2. Company Property Checklist: Comprehensive list of company items to be returned before departure
3. Benefits Summary: Details of benefit termination dates and continuation options post-employment
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