The Friendly Termination Letter is used when both employer and employee have mutually agreed to end their employment relationship on amicable terms. This document, governed by Indian employment laws, serves multiple purposes: it formally documents the termination decision, confirms the mutual nature of the separation, specifies the last working day, outlines the final settlement terms, and addresses post-employment obligations. The letter is particularly useful in scenarios where the separation is consensual and both parties wish to maintain a positive professional relationship. It helps prevent future disputes by clearly documenting the terms of separation while complying with Indian legal requirements, including those under the Industrial Disputes Act and relevant state-specific regulations.

1. Letter Header: Company letterhead, date, reference number, and addressing details of the employee

2. Subject Line: Clear indication that this is a mutual/friendly termination letter

3. Opening Statement: Reference to prior discussions and mutual agreement to terminate employment

4. Effective Date: Clear statement of the last working day

5. Acknowledgment of Service: Recognition of employee's contribution and tenure with the organization

6. Final Settlement Terms: Overview of salary, benefits, and other compensations due

7. Company Property: Instructions regarding return of company assets and documents

8. Confidentiality Reminder: Reminder of ongoing confidentiality obligations

9. Reference Provision: Statement about providing employment references

10. Closing Statement: Professional closing with good wishes for future endeavors

11. Signatures: Space for both employer and employee signatures to confirm mutual agreement