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Termination documents Settlement agreement documents

Settlement agreement proposal letter template

Reviewed 9 March 2021

This is a standard letter which can be used where there has been previous or there is ongoing disciplinary or performance management actions and the Company would like to enter discussions with the employee about ending their employment relationship.

Settlement agreement proposal

[Sender name]

[Sender address]


[Recipient name]

[Recipient address]

Dear [Recipient first name],

Confidential settlement proposal

We are writing to you because, as you are aware, we have had some concerns about your [conduct/attendance/performance] [delete as appropriate and specify sufficient detail about previous disciplinary/performance management action taken, and about the ongoing concerns, to allow the employee to make an informed decision about his/her options].

We consider that, in these circumstances, one option is to offer you a settlement agreement to bring our employment relationship to an end, and we invite you to consider the proposal set out below.

If we are unable to reach such an agreement, then you should be aware that it is our intention to proceed to the next stage of our disciplinary [or performance management] procedure [insert brief details of where the employee can reasonably access the appropriate written procedure.]

There is no obligation for you to enter into discussions with us in relation to this proposal. If you choose to do so or not, please also note that any correspondence or discussions which may follow this letter will have no bearing on any disciplinary [or performance management] procedure or decision taken by us, in the event that we are unabl

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