The Termination of Engagement Letter is a crucial document used in Malta when formally ending an employment relationship. It must comply with Malta's Employment and Industrial Relations Act and related employment legislation, including EU directives applicable to Malta. This document is typically used when either party initiates the termination of employment, whether through resignation, mutual agreement, or employer-initiated termination. The letter serves multiple purposes: it formally documents the termination decision, specifies the notice period and last working day, outlines final payment arrangements, addresses company property return, and reminds the employee of any post-employment obligations. The document's content and structure must carefully balance legal compliance with clear communication, ensuring all statutory requirements are met while maintaining professional relationships.
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1. Letterhead and Date: Company letterhead with full business details and current date
2. Recipient Details: Employee's full name and address
3. Subject Line: Clear indication that this is a termination of engagement letter
4. Confirmation of Termination: Clear statement confirming the termination of employment and the effective date
5. Notice Period: Details of the notice period as per employment contract and Maltese law
6. Final Payment Details: Information about final salary, unused leave, and other entitlements
7. Company Property: List of company property to be returned and deadline for return
8. Post-Employment Obligations: Reminder of continuing obligations such as confidentiality
9. Signature Block: Space for employer signature and acknowledgment receipt by employee
1. Reason for Termination: Include only if legally required or if termination is for cause
2. Garden Leave: Include if employee is to be placed on garden leave during notice period
3. Reference Provision: Include if company agrees to provide employment references
4. Settlement Agreement Reference: Include if termination is part of a wider settlement agreement
5. Handover Requirements: Include if specific handover of duties/projects is required
6. Outstanding Expenses: Include if there are pending expense claims to be settled
7. Benefits Continuation/Termination: Include if there are specific benefits that need addressing
8. Non-Compete Reminder: Include if employment contract contains post-termination restrictions
1. Final Payment Calculation: Detailed breakdown of final payment including salary, leave, and other entitlements
2. Company Property Checklist: Itemized list of company property to be returned
3. Employee Clearance Form: Form for various departments to sign off on employee clearance
4. Benefits Summary: Summary of treatment of various benefits upon termination
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