A Departure Letter is commonly used in England and Wales when an employee's employment is being terminated, whether through mutual agreement, redundancy, or other circumstances. The document typically includes essential information about the termination date, final payments, benefit arrangements, and ongoing obligations. A Departure Letter can be used independently for straightforward departures or in conjunction with a Settlement Agreement for more complex situations where a formal waiver of claims is required. The document helps ensure clarity and compliance with UK employment law while reducing the risk of future disputes.
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1. Addressee Details: Full name and address of the departing employee
2. Termination Date: Confirmation of last day of employment and any garden leave arrangements
3. Financial Terms: Details of final salary, notice pay, statutory payments and any ex-gratia payments
4. Benefits Treatment: Treatment of existing benefits including healthcare, pension, share schemes and company car
5. Company Property: Requirements and timeline for return of company property including equipment, documents and data
6. Confidentiality Obligations: Ongoing confidentiality requirements and treatment of company information
1. Reference Provision: Terms of employment reference and agreed wording if applicable
2. Post-termination Restrictions: Reminder or modification of existing restrictive covenants and non-compete clauses
3. Legal Advice: Confirmation of right to seek independent legal advice and contribution to legal fees
4. Outplacement Support: Details of any career transition or outplacement support being offered
1. Settlement Agreement: Formal agreement containing full terms and waiver of claims
2. Payment Schedule: Detailed breakdown of all payments including tax treatment and payment dates
3. Benefits Summary: Comprehensive list of benefit termination dates and any continuation or conversion options
4. Company Property List: Itemized list of company property to be returned
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