The Termination For Cause Letter is a critical employment document used in South African business practice when an employer needs to formally terminate an employee's contract due to serious misconduct, continuous poor performance, or other substantial reasons. It must be drafted in compliance with the Labour Relations Act 66 of 1995, the Basic Conditions of Employment Act, and other relevant employment legislation. The document should only be issued after following proper disciplinary procedures, including investigations, hearings, and providing the employee with opportunities to respond to allegations. The letter typically follows a formal warning process unless the misconduct is serious enough to warrant immediate dismissal. Its content must be clear, factual, and comprehensive, as it may be scrutinized in legal proceedings such as CCMA (Commission for Conciliation, Mediation and Arbitration) hearings.
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1. Letterhead and Date: Company letterhead, current date, and reference number if applicable
2. Recipient Details: Employee's full name, employee ID, position, and internal address
3. Subject Line: Clear indication that this is a termination of employment letter
4. Opening Statement: Direct statement confirming the termination of employment and reference to previous disciplinary hearing or process
5. Grounds for Termination: Specific reasons for termination, citing relevant misconduct or cause, with reference to specific incidents and dates
6. Previous Warnings: Reference to previous warnings, disciplinary actions, or improvement plans if applicable
7. Notice Period: Specification of notice period or payment in lieu of notice as per employment contract and BCEA requirements
8. Final Payments: Details of final salary, leave pay-out, and other entitled benefits
9. Company Property: Instructions regarding return of company property and revocation of access
10. Closing: Formal closing with contact information for HR department and signature block
1. Right of Appeal: Information about appeal procedures - include if company policy or collective agreement provides for appeals
2. Reference Letter: Information about obtaining a reference letter - include if company policy allows for reference letters
3. Non-Compete Reminder: Reminder of existing non-compete obligations - include if employee is bound by such agreements
4. Benefits Continuation: Information about continuation or termination of benefits - include if employee had significant benefits package
5. Exit Interview: Details about exit interview process - include if company policy requires exit interviews
6. Legal Rights: Statement about employee's legal rights - include if required by collective agreement or company policy
1. Schedule A - Final Payment Calculation: Detailed breakdown of final payment including salary, leave pay, and other entitlements
2. Schedule B - Company Property Checklist: List of company property to be returned, including IT equipment, access cards, etc.
3. Schedule C - Reference to Prior Warnings: Copies or details of previous written warnings or disciplinary actions
4. Schedule D - Handover Requirements: List of tasks, projects, or responsibilities that need to be handed over before departure
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