The Termination Letter Due To Company Closure is a crucial document used when a business in South Africa ceases operations and needs to terminate employee contracts. It must comply with South African labor legislation, particularly the Labour Relations Act 66 of 1995 and the Basic Conditions of Employment Act. The document is essential for proper workforce management during business closure, providing employees with formal notice of termination, explaining the reasons for closure, detailing their entitlements, and outlining the process moving forward. This letter serves multiple purposes: it fulfills legal requirements for fair dismissal, provides documentation for unemployment claims, and communicates important information about final payments and procedures. The content and structure must be carefully crafted to ensure compliance with South African employment law while maintaining clear communication with affected employees.

1. Letter Header: Company letterhead, date, employee's name and address, reference number

2. Subject Line: Clear indication that this is a notice of termination due to company closure

3. Opening Statement: Formal introduction and immediate statement of purpose regarding the company closure and resulting termination

4. Explanation of Closure: Brief but clear explanation of the business circumstances leading to closure

5. Notice Period: Specific details about the notice period and the employee's last working day

6. Financial Entitlements: Details of final salary, severance pay calculations, leave pay out, and other statutory entitlements

7. Company Property: Instructions regarding return of company property and handling of work-related materials

8. Support Services: Information about available support services, including job search assistance if provided

9. Closing Statement: Expression of gratitude for service and regret for the situation

10. Signature Block: Official signature, name and title of authorized company representative