Termination Letter Due To Company Closure Template for England and Wales

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Key Requirements PROMPT example:

Termination Letter Due To Company Closure

"I need a Termination Letter Due To Company Closure for our UK-based software development company that's closing on March 15, 2025, affecting 45 employees, with specific mention of our enhanced redundancy package and outplacement support services."

Document background
The Termination Letter Due To Company Closure is a crucial document used when a business ceases operations in England and Wales. It serves as official notification to employees about their employment termination, ensuring compliance with UK employment law. The letter must address statutory notice periods, redundancy payments, final salary calculations, and other entitlements under English law. It's particularly important for maintaining clear communication and legal compliance during the sensitive period of company closure, protecting both employer and employee interests.
Suggested Sections

1. Letter Header: Company details, date, registered address, and employee's full name and address

2. Notice of Termination: Clear statement of employment termination due to company closure, including reference to relevant consultation period

3. Last Working Day: Specific termination date and notice period details, including whether notice is being worked or paid in lieu

4. Final Payment Details: Breakdown of final salary, redundancy pay, accrued holiday pay, and other statutory entitlements

5. Return of Company Property: Instructions and deadline for returning company assets, equipment, and documents

6. Legal Rights Reference: Statement about statutory rights, redundancy entitlements, and right to appeal

Optional Sections

1. Garden Leave Provisions: Specific terms and conditions if employee is placed on garden leave during notice period

2. Outplacement Support: Details of career transition assistance, counseling, or other support services offered by the company

3. TUPE Information: Information about potential business transfer and employee rights under TUPE regulations

4. Post-Employment Restrictions: Reminder of any continuing obligations under employment contract such as confidentiality and non-compete clauses

Suggested Schedules

1. Final Payment Calculation Schedule: Detailed itemized breakdown of all final payments including salary, redundancy pay, and other entitlements

2. Company Property Schedule: List of company property to be returned with specified return dates

3. Employee Rights Guide: Comprehensive guide to redundancy rights, procedures, and available government support

Authors

Alex Denne

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

Industries

Employment Rights Act 1996: Primary legislation governing statutory notice periods, redundancy pay rights, final payment requirements, and fundamental protection of employee rights during termination

Equality Act 2010: Ensures protection against discriminatory practices during company closure and mandates fair treatment of all employees regardless of protected characteristics

Transfer of Undertakings (Protection of Employment) Regulations 2006: Regulations protecting employee rights during business transfers, applicable if the closure involves transfer of business assets or operations

Insolvency Act 1986: Legislation governing employee rights and company obligations during insolvency situations, including priority of employee claims

Trade Union and Labour Relations (Consolidation) Act 1992: Mandates collective consultation requirements, particularly when 20+ employees are being made redundant within a 90-day period

Companies Act 2006: Outlines legal requirements for company closure and director responsibilities during the closure process

Working Time Regulations 1998: Governs the calculation of outstanding holiday pay and working time considerations in final settlements

Pensions Act 2004: Regulates the treatment of pension arrangements and employer obligations regarding pension schemes during company closure

National Minimum Wage Act 1998: Ensures all final payments and calculations meet minimum wage requirements during the termination process

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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