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The Soft Termination Letter is a strategic human resources document used in situations where an employer wishes to end an employment relationship while minimizing potential legal and reputational risks under Indian employment law. This approach is particularly relevant when dealing with performance issues, organizational restructuring, or other sensitive situations where a direct termination might be controversial or potentially disputatious. The document provides a professional framework for initiating a mutually agreeable separation, typically offering the employee the dignity of resignation rather than termination. It must comply with various Indian labor laws including the Industrial Disputes Act, 1947, and relevant state-specific Shops and Establishments Acts, while addressing key aspects such as notice periods, final settlements, and post-employment obligations.

1. Letter Header: Company letterhead, date, and recipient's details including name, designation, and employee ID

2. Subject Line: Clear indication that this is regarding potential termination of employment

3. Opening Paragraph: Professional greeting and reference to previous discussions or performance issues

4. Current Situation: Brief description of the circumstances leading to this communication

5. Options Presentation: Clear outline of the options available to the employee (voluntary resignation vs. termination)

6. Notice Period: Details of the notice period and last working day

7. Financial Terms: Overview of final settlement, including salary, benefits, and other entitlements

8. Company Property: Instructions regarding return of company assets and handover process

9. Confidentiality: Reminder of ongoing confidentiality obligations

10. Closing: Professional conclusion with timeline for response and contact details for queries