A Job Termination Letter is a crucial legal document used in South African employment relationships to formally communicate the end of employment. It must comply with the Labour Relations Act 66 of 1995, the Basic Conditions of Employment Act, and other relevant employment legislation. The document is essential for various termination scenarios, including resignation, dismissal for misconduct, poor performance, operational requirements (retrenchment), or mutual agreement. It should clearly state the reason for termination, notice period, final payments, and other separation terms while maintaining professionalism and protecting both parties' legal interests. The letter serves as an official record of the employment termination and may be required in future legal proceedings or unemployment benefit claims.
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1. Company Letterhead and Date: Official company letterhead with full company details and current date
2. Employee Details: Full name, employee ID, position, and department of the employee being terminated
3. Subject Line: Clear indication that this is a termination notice
4. Termination Statement: Clear statement of the decision to terminate employment and effective date
5. Reason for Termination: Clear and legally compliant explanation for the termination decision
6. Notice Period: Specification of the notice period or payment in lieu of notice
7. Final Payment Details: Information about final salary, leave pay, and other due payments
8. Company Property: Instructions regarding return of company property
9. Closing and Signatures: Formal closing, space for authorized signatory and acknowledgment by employee
1. Performance History Summary: Include when termination is performance-related, summarizing previous warnings and improvement opportunities
2. Severance Package Details: Include when offering severance pay or additional benefits beyond statutory requirements
3. Retrenchment Consultation Reference: Include in cases of retrenchment to reference the consultation process under Section 189
4. Non-Compete Reminder: Include when employee is bound by existing non-compete or confidentiality agreements
5. Appeal Process: Include when company policy or circumstances warrant offering an internal appeal process
6. Reference Letter Offer: Include when company is willing to provide a reference letter
7. Medical Insurance Continuation: Include when applicable for continuation of medical benefits
1. Final Payment Calculation: Detailed breakdown of final payment including salary, leave pay, and other entitlements
2. Performance Improvement Plan History: If performance-related, attach documentation of previous PIPs and warnings
3. Handover Checklist: List of tasks, documents, and responsibilities to be handed over
4. Company Property Checklist: Itemized list of company property to be returned
5. Exit Interview Form: Standard form for conducting and documenting the exit interview
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