Document background
A Separation Letter is a crucial document in South African employment practice that formalizes the termination of an employment relationship. It is used when an employee's service with the company is ending, whether through resignation, mutual agreement, retirement, or termination. The document must align with South African labor laws, including the Labour Relations Act 66 of 1995 and the Basic Conditions of Employment Act 75 of 1997. A properly drafted Separation Letter protects both employer and employee interests by clearly documenting the terms of separation, including notice periods, final payments, benefit terminations, and ongoing obligations. It serves as an important reference point for both parties and may be required for various administrative purposes, including unemployment insurance claims or future employment verification.
