The End of Contract Letter is a crucial document in Indian employment law, used to formally document the conclusion of a fixed-term employment contract or mutually agreed termination. It serves multiple purposes: confirming the end date of employment, detailing final settlement arrangements, specifying company property return requirements, and outlining necessary clearance procedures. This document is essential for compliance with Indian labor laws, including the Industrial Disputes Act and relevant State Shops and Establishments Acts. It provides both employers and employees with clear documentation of the employment termination, helping prevent future disputes and ensuring all legal obligations are met. The letter typically includes references to original employment terms, final payments including any applicable gratuity, and post-employment obligations.
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1. Letter Header: Company letterhead, date, reference number, and recipient's details
2. Subject Line: Clear indication that this is an End of Contract letter
3. Contract Details Reference: Reference to the original employment contract and its term
4. Confirmation of End Date: Clear statement of the contract's end date and confirmation that it will not be renewed
5. Final Settlement Information: Details of final salary, benefits, and other dues to be settled
6. Company Property Return: List of company assets to be returned and deadline for return
7. Clearance Requirements: List of departments from which clearance is required
8. Contact Information: Details for future correspondence and reference requests
9. Signature Block: Authorized signatory details and space for signature
1. Certificate of Service: Optional section offering to provide a formal service certificate, relevant for employees requesting documentation of their employment
2. Non-Compete Reminder: If applicable, reminder of any post-employment restrictions from the original contract
3. Gratuity Payment Details: Required only for employees who have completed 5 years of service and are eligible for gratuity
4. Project Handover Requirements: For employees in key positions where formal handover is necessary
5. Exit Interview Reference: If company policy requires an exit interview, include details of the process
1. Final Settlement Calculation Sheet: Detailed breakdown of final payment including salary, leave encashment, and other dues
2. Company Property Checklist: Itemized list of company assets to be returned
3. Department Clearance Form: Form for obtaining clearance from various departments
4. Employee Benefits Statement: Statement of any continuing benefits or benefit conversions post-employment
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