¶¶Òõ¶ÌÊÓƵ

A Severance Letter is essential in New Zealand employment contexts when formalizing the termination of employment relationships. This document type is used when an employee's employment is ending due to various circumstances such as redundancy, mutual agreement, or other separation scenarios. The Severance Letter must align with New Zealand employment law requirements, particularly the Employment Relations Act 2000, and should clearly outline all termination terms, financial arrangements, and ongoing obligations. It serves as a formal record of the separation terms and helps ensure compliance with legal requirements while protecting both employer and employee interests. The document typically includes details about final payments, notice periods, return of company property, and any post-employment obligations, while maintaining the good faith principles that are fundamental to New Zealand employment relationships.

1. Opening and Addressing: Formal letter opening including date, employee's name and address

2. Confirmation of Termination: Clear statement of employment termination, including effective date and reference to prior discussions

3. Reason for Separation: Brief explanation of the circumstances leading to termination (e.g., redundancy, mutual agreement)

4. Final Payment Details: Breakdown of final payment including salary, notice period, accrued leave, and any special payments

5. Company Property: Requirements for returning company property and timeline

6. Confidentiality Obligations: Reminder of ongoing confidentiality obligations

7. Reference and Communications: Details about providing references and agreed communication about departure

8. Tax Treatment: Statement about tax treatment of payments

9. Full and Final Settlement: Confirmation that payment represents full and final settlement

10. Closing and Signature: Formal closing, signature blocks for both parties