A Full and Final Settlement Letter After Termination is used in Ireland when an employment relationship is being terminated and both parties wish to document their agreement to settle any potential claims arising from the employment or its termination. This document is typically used following negotiation of departure terms, whether in cases of redundancy, mutual agreement, or resolution of disputes. It sets out the complete financial settlement, including any ex-gratia payments, statutory entitlements, and benefits, while ensuring compliance with Irish employment law. The letter should be drafted carefully to include all necessary waivers and acknowledgments, taking into account relevant legislation such as the Unfair Dismissals Acts 1977-2015 and the Employment Equality Acts 1998-2015. It's essential that the employee receives independent legal advice before signing to ensure the settlement's enforceability.
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1. Letter Header: Company letterhead, date, and addressee details
2. Opening Reference: Reference to previous discussions/meetings regarding the termination
3. Confirmation of Termination: Clear statement of employment termination date and circumstances
4. Settlement Sum: Details of the settlement payment amount and what it includes
5. Payment Terms: When and how the settlement payment will be made, including tax treatment
6. Accrued Rights: Confirmation of payment of salary, benefits, and accrued holiday up to termination
7. Waiver of Claims: Comprehensive waiver of potential claims against the employer
8. Company Property: Confirmation of return of all company property
9. Confidentiality: Obligations regarding confidentiality of settlement terms
10. Acknowledgment: Statement confirming independent legal advice and understanding
11. Signature Block: Space for signatures of both parties to confirm acceptance
1. Reference Provision: Terms regarding the provision of employment references, if agreed
2. Post-termination Restrictions: Reminder or modification of existing restrictive covenants
3. Redundancy Payment: Details of statutory redundancy payment if termination is due to redundancy
4. Company Announcements: Agreed internal/external communications about the departure
5. Outplacement Support: Details of any career transition services being provided
6. Share Options/Benefits: Treatment of outstanding share options or long-term benefits
7. Legal Costs: Agreement to pay employee's legal costs for reviewing the settlement
1. Schedule of Payments: Detailed breakdown of all payments including basic pay, ex-gratia payment, benefits, etc.
2. Schedule of Claims: Comprehensive list of statutory and contractual claims being settled
3. Schedule of Company Property: Itemized list of company property to be returned
4. Reference Template: Agreed form of reference if applicable
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