The Severance Offer Letter is a crucial document in Australian employment practice, typically used when an organization needs to terminate employment due to redundancy, restructuring, or other business changes. It serves as both a formal communication tool and a legal document that outlines the complete termination package offered to an employee. The document must comply with the Fair Work Act 2009 and other relevant Australian legislation, including specific requirements for notice periods, redundancy payments, and treatment of entitlements. It should be drafted with careful consideration of statutory obligations, tax implications, and the organization's policies, while also addressing practical matters such as the return of company property and ongoing obligations. The letter often forms part of a broader termination agreement and may require legal review to ensure compliance with Australian employment law.
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1. Employee Details and Date: Full name, position, and date of the letter
2. Introduction and Context: Brief explanation of the reason for the severance offer (e.g., redundancy, restructuring)
3. Last Day of Employment: Clear statement of the termination date and any arrangements for the notice period
4. Severance Payment Details: Breakdown of the severance package including base entitlements and any additional payments
5. Statutory Entitlements: Details of accrued leave, long service leave, and other statutory payments
6. Benefits Continuation/Termination: Information about ongoing benefits or their termination
7. Return of Company Property: List of items to be returned and process for return
8. Confidentiality Obligations: Reminder of ongoing confidentiality obligations
9. Release of Claims: Terms of the release agreement and what claims are covered
10. Consideration Period: Time given to consider and accept the offer
11. Acceptance Process: Instructions for accepting the offer and deadline
12. Contact Information: HR or legal contact for questions about the offer
1. Outplacement Services: Details of career transition support, if offered
2. Reference Letter: Terms of reference letter provision and handling of future employment inquiries
3. Non-disparagement Clause: Mutual agreement not to make negative statements, if required
4. Post-employment Restrictions: Any applicable non-compete or non-solicitation provisions
5. Medical Benefits Extension: Details of any extended health coverage, if applicable
6. Stock Options/Equity: Treatment of outstanding equity compensation, if applicable
7. Bonus Treatment: Handling of pro-rata bonus or commission payments, if applicable
8. Consulting Arrangement: Terms of any post-employment consulting work, if offered
1. Schedule A - Severance Calculation: Detailed breakdown of severance payment calculation including base pay, years of service, and any additional amounts
2. Schedule B - Statutory Entitlements Calculation: Detailed calculation of annual leave, long service leave, and other statutory payments
3. Schedule C - Benefits Summary: Comprehensive list of benefits and their treatment post-termination
4. Appendix 1 - Release Agreement: Full terms of the release of claims agreement
5. Appendix 2 - Company Property Checklist: Itemized list of company property to be returned
6. Appendix 3 - Relevant Policies: Copies of relevant company policies that continue to apply post-employment
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