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Employment Termination Letter with Settlement Proposal

Employers, use this template to prepare a Letter of Termination with a settlement proposal offering two options to the departing employee.

The employee can accept one of the two proposals set out in the letter:
  • immediate termination with monthly payments of the settlement amount for a specified number of months, or
  • immediate termination with a lump sum payment of the settlement amount.
If the employee chooses the first option, he/she will be required to report to the employer if they have found new employment, in which case salary from the new job will be deducted from the monthly settlement payments. The form also includes a Release Form to be signed by the employee.

This Employment Termination Letter with Settlement Proposal template is provided in MS Word format, and is easy to download, fill in with your details, and print.

Download: Employment Termination Letter with Settlement Proposal

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