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Release Letter From Employer for the United Kingdom

Release Letter From Employer Template for England and Wales

A Release Letter from Employer is a formal document under English and Welsh law that confirms the termination of employment between an employer and employee. It outlines the terms of separation, including the final working day, outstanding payments, benefits cessation, and any continuing obligations. The document serves as official confirmation of the employment relationship's end and can help prevent future disputes by clearly stating the agreed terms of separation.

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What is a Release Letter From Employer?

A Release Letter From Employer is utilized when an employment relationship is being terminated, whether through resignation, mutual agreement, or other circumstances. This document, governed by English and Welsh law, serves multiple purposes: it confirms the end date of employment, details final payment arrangements, addresses the return of company property, and outlines any post-employment obligations. The letter provides legal certainty for both parties and helps ensure a clear understanding of the separation terms. It's particularly important in situations involving senior employees or where there are specific contractual obligations that need to be addressed.

What sections should be included in a Release Letter From Employer?

1. Letterhead and Date: Company details and date of release

2. Employee Details: Full name and address of employee

3. Employment End Date: Confirmation of last working day

4. Final Payment Details: Breakdown of final salary and any additional payments

5. Return of Company Property: List of items to be returned

6. Confirmation of Obligations: Reference to continuing obligations (e.g., confidentiality)

What sections are optional to include in a Release Letter From Employer?

1. Reference Provision: Details of future reference arrangements - include when agreed as part of exit terms

2. Garden Leave: Terms of garden leave if applicable - include when employee is put on garden leave

3. Post-Employment Restrictions: Reminder of existing restrictive covenants - include when employment contract contains restrictions

What schedules should be included in a Release Letter From Employer?

1. P45: Tax document for end of employment

2. Final Payslip: Detailed breakdown of final payment

3. Benefits Summary: Summary of terminating benefits and continuation options - include if employee had benefits package

Authors

Alex Denne

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

Jurisdiction

England and Wales

Publisher

Ƶ

Document Type

Employment Letter

Cost

Free to use
Relevant legal definitions















Clauses




















Industries

Employment Rights Act 1996: Primary legislation covering basic employment rights, statutory notice periods, and final payment obligations to employees

Equality Act 2010: Ensures the release letter complies with anti-discrimination laws and prevents victimization claims based on protected characteristics

Employment Relations Act 1999: Governs rights regarding representation during employment termination processes

Limitation Act 1980: Establishes time limits for bringing claims and is relevant for waiver provisions in the release letter

Data Protection Act 2018 and UK GDPR: Regulates the handling of employee personal data and sets data retention obligations during and after employment

National Minimum Wage Act 1998: Ensures compliance with minimum wage requirements and that all wage obligations are properly met

Working Time Regulations 1998: Covers holiday pay calculations and outstanding leave entitlements that need to be addressed in the release

Income Tax Act 2007: Addresses tax implications of any payments and proper treatment of notice pay in the release letter

Settlement Agreements legislation: Covers requirements for legal validity if the release includes settlement terms and ensures compliance with settlement agreement regulations

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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