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Suneel Pepakayala (Manger HR)     25 May 2020

Required retrenchment letter draft

Dear All, Can some one help me a draft to Retrenchment letter with legal terminology. That will be very helpful to me. Regards, Suneel Pepakayala


 2 Replies

Gaurav Parashar   09 June 2020

Daer Sir,

I am attaching a retrenchment letter format, hope you will find it suitable.

Dear [Employee Name],

I’m sorry to inform you that amid this Covid Pandemic we are unable to keep so many employees employed because we are sustaining very high damages and wont be able employ so many employees, as of [Termination Date], you’ll be no longer employed with our [Company Name]. After much discussion, it is concluded that [Reason for Termination]. 

From [Termination Date] on, you won’t be eligible for any compensation or benefits under your job scheme. Please retur all the company property that you ave been given or you have taken for company business before [Termination Date].

You are entitled to your salary up until [Termination date] and we’ll also compensate you for your remaining vacation days. We’ll also provide severance pay that will amount to [Amount]. You will receive a letter specifically informing you about the compensation and all other related information.

Please keep in mind that you have signed a non-disclosure agreement. If you have any information about our customers, employees or other stakeholders stored on paper or on your personal devices, you must delete it immediately.

If you have questions or clarifications, I’m at your disposal for up to [five] working days after your last day of employment.

We wish you best of luck for you future.

[Your name and signature]

Tirtharaj Basu Ray   09 June 2020

You  can draft it using the following points  :-

Add the employee name, ID number, position, and department.

Add the name of manager or supervisor handling the layoff.

Include any severance, benefits, and compensation the employee is entitled to.

Detail any company property employee is expected to return.

Highlight any legal agreements including non-disclosure, non-compete, etc. the employee has signed.

Have your legal counsel check the letter before you send it.

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