The Mutual Termination Of Employment Letter is used when both the employer and employee in Malta agree to end their employment relationship by mutual consent. This document is distinct from unilateral termination notices and is particularly useful in situations where both parties wish to document an amicable separation with agreed terms. It must comply with Malta's Employment and Industrial Relations Act and related employment legislation, making it a legally binding document that protects both parties' interests. The letter typically includes the termination date, financial settlements, benefit arrangements, and any post-employment obligations. It's commonly used during corporate restructuring, when employees move to new opportunities, or in situations where an early employment end benefits both parties. The document serves as official evidence of the mutual agreement and helps prevent future disputes by clearly outlining all termination terms.
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1. Letter Header: Company letterhead, date, and reference number
2. Addressing: Employee's full name and address
3. Subject Line: Clear indication that this is a mutual termination of employment agreement
4. Opening Statement: Reference to previous discussions and confirmation of mutual agreement to terminate
5. Employment Details: Current position, start date, and agreed termination date
6. Final Working Day: Confirmation of the last day of employment
7. Financial Settlement: Details of final salary, outstanding leave, bonuses, and any other payments
8. Company Property: List of items to be returned and deadline for return
9. Benefits Termination: Information about the cessation of benefits and insurance coverage
10. Signature Block: Space for both employer and employee signatures, with date lines
1. Ongoing Projects Handover: Include when the employee needs to complete or hand over specific projects
2. Non-Disclosure Reminder: Include when reinforcing existing confidentiality obligations is necessary
3. Reference Provision: Include when agreeing to provide future employment references
4. Post-termination Restrictions: Include when reiterating any existing post-employment obligations
5. Medical Insurance Extension: Include if there's an agreement to extend medical coverage
6. Waiver of Claims: Include when both parties agree to waive any future claims
7. Tax Declaration: Include when special tax considerations apply to the termination payment
1. Financial Settlement Breakdown: Detailed calculation of all final payments, including salary, leave, and other benefits
2. Company Property Checklist: Itemized list of company property to be returned
3. Benefit Termination Schedule: Detailed timeline of when various benefits and insurances will cease
4. Handover Documentation: List of projects, files, and responsibilities to be handed over before departure
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