A Termination Letter With Pay In Lieu Of Notice is a formal document used in Ireland when an employer wishes to terminate employment immediately while compensating the employee for their notice period rather than having them work through it. This approach is commonly used when immediate separation is preferred, such as in sensitive roles or during restructuring. The document must comply with Irish employment law, particularly the Minimum Notice and Terms of Employment Act 1973 and the Payment of Wages Act 1991. It should clearly state the termination date, detail the payment calculations, address benefit termination, and specify company property return requirements. This type of letter is crucial for maintaining clear documentation of the termination process and protecting both employer and employee interests.
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1. Letter Header: Company letterhead, date, and employee's full name and address
2. Formal Salutation: Professional greeting addressing the employee by name
3. Statement of Termination: Clear statement of employment termination and effective date
4. Pay in Lieu of Notice: Details of the notice period being paid in lieu and calculation basis
5. Final Payment Details: Breakdown of final payment including salary, PILON, and accrued holiday pay
6. Company Property: Instructions regarding return of company property and deadline
7. Employee Benefits: Information about cessation of benefits and any post-employment continuation
8. Tax Treatment: Statement about tax treatment of termination payments
9. Acknowledgment: Space for employee signature to acknowledge receipt and understanding
10. Closing: Professional closing and signature block for employer representative
1. Garden Leave: Include when employee is being placed on garden leave during notice period
2. Post-Employment Restrictions: Reference to existing restrictive covenants if applicable
3. Outstanding Commissions/Bonuses: Include if employee has any pending commission or bonus payments
4. Reference Provision: Details about providing future employment references
5. Ongoing Obligations: Reminder of continuing obligations regarding confidentiality
6. Legal Advice: Recommendation to seek independent legal advice if termination is part of a settlement
7. Grievance Procedures: Include if there are ongoing grievance procedures or appeals
1. Schedule 1 - Payment Calculation: Detailed breakdown of final payment calculation including PILON, holiday pay, and any other entitlements
2. Schedule 2 - Benefits Summary: List of benefits and their termination dates or continuation terms
3. Schedule 3 - Company Property Checklist: Itemized list of company property to be returned
4. Appendix A - Exit Procedures: Detailed checklist of actions required for proper offboarding
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