The Labour Cancellation Letter is essential documentation for formally ending employment relationships under English and Welsh law. It should be used when an employer needs to terminate employment, whether due to redundancy, performance issues, or other valid reasons. The letter must include specific information required by UK employment legislation, such as notice periods, final payment details, and return of company property. It serves as both a legal record and a clear communication tool, protecting both employer and employee interests while ensuring compliance with employment law requirements.
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1. Recipient Details: Full name, address, and position of the employee
2. Date: Current date and effective date of termination
3. Reason for Termination: Clear statement of the reason for employment termination
4. Notice Period: Specification of notice period and last working day
5. Final Pay: Details of final salary, including any outstanding payments
1. Garden Leave: Details of garden leave arrangements, when employee is being placed on garden leave during notice period
2. Post-Employment Obligations: Reminder of continuing obligations such as confidentiality and non-compete clauses, when employment contract contains post-termination restrictions
3. Return of Company Property: List of items to be returned, applicable when employee has company equipment or property
1. P45 Form: Tax document showing earnings and tax paid to date
2. Final Payment Breakdown: Detailed calculation of final salary, holiday pay, and any other payments
3. Reference Letter: Standard reference letter if agreed to provide one, included when mutually agreed or company policy requires
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