The Without Prejudice Termination Letter is a crucial document in South African employment law, utilized when an employer seeks to negotiate the termination of employment on mutually agreed terms. This document type emerges from the need to facilitate open and honest communication between parties while maintaining legal protection under the without prejudice rule. It is particularly relevant when standard termination procedures might be contentious or when parties wish to avoid potential disputes through negotiated settlement. The letter must comply with South African labour legislation, including the Labour Relations Act 66 of 1995 and the Basic Conditions of Employment Act 75 of 1997, while maintaining confidentiality under common law principles. The document serves as a foundation for negotiation, typically leading to a formal settlement agreement if terms are accepted.
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1. Opening Statement: Clearly states 'Without Prejudice' at the top of the letter and includes the date and addressee details
2. Reference Line: Clear subject line indicating this relates to the termination of employment
3. Acknowledgment of Discussions: References previous discussions or meetings regarding the employment situation
4. Current Position: Brief statement of the current employment situation and issues
5. Proposed Terms: Clear outline of the termination proposal including final payment details
6. Notice Period: Specification of the notice period and last working day
7. Financial Settlement: Detailed breakdown of all financial elements of the termination package
8. Company Property: Requirements for returning company property and handling confidential information
9. Closing Statement: Statement regarding the without prejudice nature of the communication and time limit for acceptance
1. Reference Provision: Include when offering to provide a reference as part of the settlement
2. Post-Employment Restrictions: Include when reminding employee of existing restraints or proposing new ones
3. Medical Benefits: Include when there are continuing medical aid or benefits to address
4. Legal Representation: Include when acknowledging or recommending employee seeks legal advice
5. Tax Implications: Include when the settlement includes taxable elements requiring explanation
6. Outplacement Support: Include when offering career transition or outplacement services
1. Financial Settlement Calculation: Detailed breakdown of all payment components including salary, leave, bonuses, and other benefits
2. Company Property List: Itemized list of company property to be returned
3. Settlement Agreement: Draft settlement agreement that would formalize the terms if accepted
4. Benefits Summary: Detailed summary of any continuing or terminating benefits
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