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Severance Letter Template
A Severance Letter is a formal notification prepared by an employer and sent to the employee when the latter could not take advantage of the opportunity to improve their performance and their employment is about to end. If the employee was presented with the performance improvement plan yet could not achieve the required results on time, the human resources department can draft this letter to inform them about the upcoming firing and offer them a severance package - compensation paid to the employee discharged from service.
Alternate Name:
- Severance Package Letter.
Using Severance Letter templates can help any organization that is looking for a positive end to their work relationship with employees that could not perform at the required level - once a severance agreement is accepted and signed, the employee will not file a lawsuit against the employer while being satisfied with the final payment they received from the company. You can download a Severance Letter template through the link below.
How to Write a Severance Letter?
Follow these steps to prepare a Letter of Severance:
- Include the name of the company and its contact details.
- Greet the employee by their full name.
- Confirm the decision not to employ the individual in question any longer . Provide the reason for this - in several sentences, you can state why severance is the best course of action for the organization. Make sure the employee understands that this document serves as a notification of the end of their performance improvement plan - the person did not meet specific requirements set by the employer or failed to improve their behavior in the workplace.
- Tell the recipient they lose their eligibility to receive a salary, additional compensation, benefits, and perks associated with the position they are leaving. Indicate the date their employment formally ends.
- Ask the employee to return company property to the human resources department and set a deadline for this return.
- Confirm the individual still has a right to receive a salary until the employment agreement is formally terminated . If the employee still has vacation days you have not paid them for, mention them in the letter as well. Indicate the amount of the severance pay you offer and tell the employee how and when they will be able to receive it. The severance pay usually depends on the length of the employment and can be paid out in installments if the parties agree to it.
- Highlight the obligations of the employee they must comply with even after their employment is over . For instance, if the employment contract contained a non-compete clause or a confidentiality clause or the employee has signed separate documents agreeing to the terms offered by the employer, they must respect these obligations for the time period indicated in writing.
- Let the employee know you will answer their questions until the employment is terminated, sign the letter, and give it to the recipient or mail it to their last known address.
Still looking for a particular template? Take a look at the related templates and samples below:
Download Severance Letter Template
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