Without Prejudice Termination Letter for Ireland

Without Prejudice Termination Letter Template for Ireland

A Without Prejudice Termination Letter under Irish law is a formal document used to propose and document the terms of an employee's departure from an organization through mutual agreement. The document combines elements of both termination and settlement, protected by the 'without prejudice' rule under Irish common law. It sets out the proposed terms of separation, including financial arrangements, continuing obligations, and any special conditions, while maintaining legal privilege in potential settlement negotiations. The document must comply with Irish employment legislation, including the Unfair Dismissals Acts and Minimum Notice requirements.

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What is a Without Prejudice Termination Letter?

A Without Prejudice Termination Letter is utilized in situations where an employer wishes to propose a mutually agreed termination of employment while protecting the confidentiality of settlement discussions under Irish law. This document is particularly relevant when seeking to resolve employment matters amicably and avoid potential litigation. It typically arises in scenarios including redundancies, performance issues, or organizational restructuring where a negotiated exit is preferred. The letter must carefully balance legal requirements under Irish employment law with practical commercial considerations, incorporating essential elements such as financial terms, notice periods, and continuing obligations. The 'without prejudice' nature of the communication provides a framework for open negotiation while protecting both parties' legal positions if discussions fail.

What sections should be included in a Without Prejudice Termination Letter?

1. Without Prejudice and Contract of Settlement Header: Clear marking of the document's without prejudice nature and its intention as a settlement proposal

2. Addressee Details: Full name and address of the employee

3. Current Employment Status: Brief statement of current role, start date, and current salary

4. Termination Proposal: Proposed termination date and basis for termination

5. Financial Terms: Details of all payments including notice pay, statutory redundancy if applicable, and ex-gratia payments

6. Tax Treatment: Explanation of how different payment elements will be treated for tax purposes

7. Company Property: Requirements for returning company property

8. Confidentiality: Reminder of ongoing confidentiality obligations

9. Full and Final Settlement: Statement that the agreement constitutes full and final settlement of all claims

10. Legal Advice: Recommendation to seek independent legal advice

11. Acceptance Terms: How and when to accept the proposal, including any deadlines

What sections are optional to include in a Without Prejudice Termination Letter?

1. Director Resignations: Required if the employee holds any director positions - includes resignation from all directorship positions

2. Post-termination Restrictions: Reference to and/or modification of existing restrictive covenants

3. Reference Provision: Terms of any agreed reference to be provided

4. Garden Leave: Include if employee will be placed on garden leave during notice period

5. Share Options/Awards: Treatment of any share options or equity-based awards

6. Medical Insurance: Continuation or termination of medical benefits

7. Legal Fee Contribution: Any contribution towards legal fees for reviewing the agreement

8. Internal/External Announcements: Agreed wording for announcing the departure

What schedules should be included in a Without Prejudice Termination Letter?

1. Schedule 1: Payment Calculation: Detailed breakdown of all payment elements including basic pay, notice pay, holiday pay, and any ex-gratia payments

2. Schedule 2: Company Property List: Itemized list of company property to be returned

3. Schedule 3: Agreed Reference: If applicable, the agreed form of reference to be provided

4. Schedule 4: Benefit Details: Detailed breakdown of treatment of benefits including healthcare, insurance, car allowance etc

5. Schedule 5: Share Option Summary: If applicable, detailed breakdown of treatment of share options and awards

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Ireland

Publisher

Genie AI

Document Type

Termination Letter

Cost

Free to use
Relevant Industries

Financial Services

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Industries
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Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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