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Termination Letter With Pay In Lieu Of Notice Template for England and Wales

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Key Requirements PROMPT example:

Termination Letter With Pay In Lieu Of Notice

"I need a Termination Letter With Pay In Lieu Of Notice for a senior software developer who has been with us for 5 years, including standard restrictive covenants and confirmation that they will keep their company laptop as agreed, with termination effective March 15, 2025."

Document background
The Termination Letter With Pay In Lieu Of Notice is used when an employer wishes to terminate employment immediately while compensating the employee for their notice period rather than having them work it. This document is essential in England and Wales for ensuring legal compliance and clear communication of termination terms. It typically includes specific details about payment calculations, final entitlements, company property return, and any continuing obligations. The letter serves as both a legal record and practical guide for both parties during the separation process, helping to minimize potential disputes and ensure proper documentation of the termination process.
Suggested Sections

1. Employee Details: Full name, position, and employee number of the terminated employee

2. Termination Date: Clear statement of the last day of employment and effective date of termination

3. Notice Period: Statement of contractual notice period and PILON arrangement details

4. Payment Calculations: Breakdown of PILON amount, method of calculation, and payment timing

5. Return of Company Property: Requirements and deadline for returning company assets and equipment

Optional Sections

1. Garden Leave: Terms and conditions of garden leave period, if applicable

2. Restrictive Covenants: Reminder of ongoing post-employment obligations and restrictions

3. Reference Provision: Terms and conditions regarding future employment references

4. Confidentiality Obligations: Reminder of ongoing confidentiality obligations post-employment

Suggested Schedules

1. Payment Schedule: Detailed breakdown of final payment including salary, PILON, holiday pay, and other entitlements

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

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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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Employment Rights Act 1996: Primary legislation covering statutory notice periods, right to written reasons for dismissal, protection against unfair dismissal, and calculation of continuous service.

Equality Act 2010: Legislation ensuring protection against discriminatory dismissal, covering protected characteristics, and ensuring termination processes are non-discriminatory.

Employment Protection (Consolidation) Act 1978: Covers basic employee rights and notice period requirements in employment relationships.

National Minimum Wage Act 1998: Ensures that PILON (Payment in Lieu of Notice) calculations meet minimum wage requirements.

Working Time Regulations 1998: Governs the calculation of accrued holiday pay and holiday entitlement considerations during termination.

Income Tax (Earnings and Pensions) Act 2003: Regulates tax treatment of PILON payments and Post-Employment Notice Pay (PENP) calculations.

Employment Tribunals Extension of Jurisdiction (England and Wales) Order 1994: Covers considerations for contractual claims in employment tribunals.

Collective Agreements: Any relevant collective agreements that may affect the termination process.

Employment Contract: The employee's specific contract of employment containing terms and conditions relevant to termination.

Company Policies: Internal company policies and procedures regarding termination of employment.

Restrictive Covenants: Any post-employment restrictions that need to be referenced in the termination letter.

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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