The Without Prejudice Termination Letter serves as a critical tool in U.S. employment law when organizations need to terminate employment while minimizing legal exposure. This document is typically used when the employer wishes to propose a settlement package alongside the termination notice. The 'without prejudice' designation, protected under Federal Rule of Evidence 408, enables frank discussion of settlement terms while preventing these communications from being used in potential litigation. The letter should carefully balance legal compliance with practical considerations, including federal and state employment laws, while clearly outlining proposed terms for separation.
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1. Date and Address Block: Current date and recipient's full contact details including employee name, address, and reference number
2. Without Prejudice Statement: Clear marking of 'WITHOUT PREJUDICE AND SUBJECT TO CONTRACT' at the top of the letter
3. Termination Statement: Clear statement of employment termination including position title and effective date
4. Reason for Termination: Brief and factual explanation of termination circumstances
5. Settlement Terms: Proposed settlement package including financial terms, benefits, and conditions
6. Final Payment Details: Breakdown of final payment including salary, unused vacation, and severance
7. Return of Company Property: Instructions regarding the return of company assets and timeline
8. Closing and Signature: Formal closing, signature block, and company representative details
1. Reference Provision: Terms and conditions for providing future employment references
2. Non-Disparagement Clause: Mutual agreement not to make negative statements about either party
3. Outplacement Support: Details of career transition assistance and support services offered
4. Continuing Obligations: Reminder of ongoing obligations such as confidentiality and non-compete agreements
5. Legal Consultation Period: Statement about employee's right to seek legal counsel and review period
1. Settlement Agreement: Detailed legal agreement containing full settlement terms and conditions
2. Benefits Summary: Comprehensive overview of post-employment benefits including health insurance and COBRA details
3. Final Payment Calculation: Detailed breakdown of all final payments including salary, benefits, severance, and any deductions
4. Company Property Checklist: List of company property to be returned including devices, access cards, and documents
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