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Company Release Letter To Employee Template for England and Wales

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Key Requirements PROMPT example:

Company Release Letter To Employee

"I need a Company Release Letter To Employee for a senior software developer who is leaving amicably on 15 March 2025, including provisions for a positive reference and three months of outplacement support, but excluding any post-employment restrictions."

Document background
The Company Release Letter To Employee is a crucial document used when terminating employment relationships in England and Wales. It's typically employed during amicable separations, redundancies, or as part of settlement agreements. The document outlines the terms of separation, including financial settlements, continuing obligations, and mutual releases of claims. It provides legal certainty for both parties and helps prevent future disputes. The letter must comply with UK employment law, including the Employment Rights Act 1996 and Equality Act 2010, and often includes provisions for confidentiality, return of company property, and post-employment restrictions.
Suggested Sections

1. Letter header: Company letterhead, date, and addressee details

2. Employment termination confirmation: Clear statement of employment end date and circumstances

3. Release terms: Specific claims being released and scope of the release

4. Financial settlement: Details of any payments, including final salary and benefits

5. Return of company property: Requirements for returning company assets

6. Confidentiality obligations: Ongoing duties regarding company information

7. Signature blocks: Space for both parties to sign and date

Optional Sections

1. Reference provision: Terms regarding the provision of future employment references

2. Post-termination restrictions: Reminder of ongoing restrictive covenants from employment contract

3. Tax indemnity: Employee's commitment regarding tax liability on payments

4. Outplacement support: Details of any career transition assistance provided by the company

Suggested Schedules

1. Payment calculation: Detailed breakdown of final payment amounts including salary, benefits, and any settlement sum

2. Company property list: Itemized list of company assets to be returned by the employee

3. Ongoing obligations: Summary of continuing post-employment duties and restrictions

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions

























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Employment Rights Act 1996: Primary legislation covering basic employment rights, statutory notice periods, and protection against unfair dismissal. Essential for ensuring the release letter complies with fundamental employment protections.

Equality Act 2010: Legislation ensuring protection against discrimination based on protected characteristics. Must be considered to ensure the release letter doesn't contain discriminatory terms.

Working Time Regulations 1998: Regulations governing holiday pay calculations and working hours considerations. Relevant for any final payment calculations in the release letter.

National Minimum Wage Act 1998: Legislation ensuring any final payments meet minimum wage requirements. Must be considered when calculating any outstanding payments mentioned in the release.

Companies Act 2006: Key legislation covering corporate authority to execute documents and corporate governance requirements. Ensures proper execution of the release letter by authorized company representatives.

Contract Law Principles: Fundamental legal principles covering consideration, capacity to contract, and clear terms. Essential for ensuring the release letter is legally binding and enforceable.

Settlement Agreements Legislation: Legal framework governing settlement agreements, including requirements for independent legal advice and valid waiver of claims. Relevant if the release is part of a broader settlement.

GDPR and Data Protection Act 2018: Data protection legislation governing the handling of personal data and privacy considerations in documentation and processing.

Limitation Act 1980: Legislation setting time limits for bringing claims and defining scope of release. Important for establishing temporal boundaries of the release.

Tax Legislation: Including Income Tax Act and related regulations, governing the treatment of payments and National Insurance considerations in employment termination.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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