The Full and Final Settlement Letter After Termination is a crucial document used in Malta when concluding an employment relationship to ensure legal certainty and finality for both parties. It is typically issued following the termination of employment, whether by mutual agreement, resignation, or dismissal, and serves to document all final payments, benefits, and obligations. The letter, governed by Maltese employment law, particularly the Employment and Industrial Relations Act, should comprehensively address all aspects of the termination settlement, including final payments, tax implications, company property return, and release of claims. This document is essential for risk management and compliance purposes, providing both parties with clear documentation of the termination terms and helping prevent future disputes.

1. Letter Header: Company letterhead, date, and formal addressing to the employee including their full name and address

2. Reference Line: Clear reference to the employment termination and settlement

3. Employment Details: Confirmation of employment period, position held, and termination date

4. Settlement Amount: Clear statement of the total settlement amount and its components (e.g., outstanding salary, notice pay, vacation pay, etc.)

5. Payment Terms: Details of how and when the settlement amount will be paid

6. Tax Treatment: Statement regarding the tax treatment of the settlement amount

7. Full and Final Settlement Declaration: Clear statement that this represents full and final settlement of all claims

8. Release of Claims: Specific waiver of all claims against the employer

9. Confidentiality: Statement regarding confidentiality of the settlement terms

10. Return of Company Property: Confirmation of return or list of items to be returned

11. Closing and Signatures: Formal closing, signature blocks for both parties