Voluntary Separation Letter Template for England and Wales

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Key Requirements PROMPT example:

Voluntary Separation Letter

"I need a Voluntary Separation Letter for a senior software engineer who has agreed to leave our tech company amicably, with their last working day being March 15, 2025, including standard non-compete clauses and provisions for a positive reference."

Document background

The Voluntary Separation Letter serves as a crucial document in situations where an employee and employer have mutually agreed to end their employment relationship. This document, governed by the laws of England and Wales, formally records the terms of separation, protecting both parties' interests. It typically includes separation date, notice period arrangements, final payment calculations, benefit terminations, and any continuing obligations. The Voluntary Separation Letter is particularly important for ensuring compliance with UK employment legislation while maintaining professional relationships and minimizing potential future disputes.

Suggested Sections

1. Employee and Employer Details: Full names, addresses, and relevant contact information of both parties

2. Separation Date: Clear statement of the effective date of separation/last day of employment

3. Notice Period: Confirmation of notice period and whether it will be worked or paid in lieu

4. Final Payment Details: Breakdown of final salary, unused holiday pay, and any other payments due

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

Optional Sections

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

2. Reference Provision: Terms and format of employment reference to be provided by the employer

3. Non-Compete Reminder: Reminder of existing post-employment restrictions and confidentiality obligations

4. Tax Treatment: Explanation of tax treatment for various payment elements

5. Ongoing Benefits: Details of any benefits that will continue post-employment and for how long

Suggested Schedules

1. Final Payment Calculation: Detailed breakdown of all final payments including salary, holiday pay, and any other entitlements

2. Company Property Checklist: Itemized list of company property to be returned

3. Benefits Termination Summary: Schedule detailing when various benefits will cease and any conversion options

4. Post-Employment Obligations: Summary of continuing obligations such as confidentiality and restrictive covenants

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

alex.den.21@genieai.co

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Authors

Alex Denne

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