The Severance Negotiation Letter is a crucial document in Irish employment practice, typically used when an employer wishes to initiate or respond to discussions regarding the termination of employment with compensation beyond statutory minimums. It forms the foundation for negotiating a separation package that may include financial compensation, benefits continuation, and other terms. The document must comply with Irish employment law, including the Redundancy Payments Acts, Unfair Dismissals Acts, and relevant tax legislation. It is commonly used in situations involving redundancy, restructuring, or mutually agreed separations, particularly for senior employees or in sensitive termination situations. The letter should be carefully drafted to maintain professionalism while clearly outlining proposed terms and protecting both parties' interests.
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1. Opening and Context: Date, recipient details, and clear statement that this is a severance negotiation letter
2. Current Employment Status: Brief overview of employee's position, length of service, and current salary
3. Reason for Separation: Clear explanation of the circumstances leading to the separation (e.g., redundancy, restructuring)
4. Proposed Severance Package: Detailed outline of the financial compensation being offered
5. Statutory Entitlements: Explanation of statutory redundancy pay and notice period requirements
6. Benefits Continuation: Details about medical benefits, insurance, or other benefits continuation or termination
7. Return of Company Property: List of company items to be returned and process for return
8. Reference Provision: Terms of employment references to be provided
9. Timeline and Response: Deadline for response and next steps in the negotiation process
1. Ongoing Projects Handover: Include when employee is involved in critical projects requiring transition
2. Non-Compete Provisions: Include when new or modified non-compete terms are part of the severance package
3. Outplacement Services: Include when career transition support is being offered
4. Stock Options/Equity: Include when employee has company shares or stock options that need addressing
5. Legal Representation: Include when suggesting or requiring employee to seek independent legal advice
6. Confidentiality Terms: Include when specific confidentiality requirements need to be highlighted
7. Tax Implications Statement: Include when complex tax considerations need to be addressed
1. Severance Calculation Schedule: Detailed breakdown of severance pay calculation including basic pay, bonuses, and statutory elements
2. Benefits Summary: Comprehensive list of current benefits and their treatment post-employment
3. Settlement Agreement Draft: Draft of the formal settlement agreement that will need to be signed if terms are accepted
4. Company Property Checklist: Itemized list of company property to be returned
5. Exit Process Timeline: Schedule of key dates including last working day, payment dates, and benefits termination dates
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