Termination Letter - Consultant
Termination Letter - Consultant
Published:
Nov 30, 2022
This termination letter can be used by a company to terminate a self-employed consultant’s engagement. It can be used where the consultant is an individual or where they are engaged through a limited company.
What is a termination letter?
Consultancy agreements normally state that the company can terminate the consultancy agreement by giving notice to the consultant in writing. This letter can be used to satisfy this requirement. It is suitable for use in a number of situations, including where the consultant is an individual, or where they are providing their services through a limited company.
It sets out the payments that are owed to the consultant, and it reminds the consultant about the ongoing obligations in their consultancy agreement - for example those relating to confidentiality, and post-termination restrictions (also known as “restrictive covenants” or “non-competes”).
Why is a termination letter important?
If the contract states that notice of termination must be given in writing, a letter should be given to the consultant in order to terminate the consultancy agreement. Even if there is no requirement for written notice, it is good practice to confirm the termination in writing, to avoid any disputes about whether notice was properly given.
The termination letter is also important to explain any payments owed to the consultant and also to remind the consultant of any ongoing contractual obligations that apply to them (for example relating to confidentiality or post-termination restrictions).
This letter asks the consultant to sign and return it. This helps provide evidence that the consultancy agreement has been properly terminated, and that the consultant is aware of their ongoing obligations.
What are the common pitfalls of a termination letter?
Not having a termination letter
If no termination letter is issued, there may be a dispute about whether notice has actually been given, and therefore when the consultancy will terminate. There may also be a dispute about what was agreed with regards to working arrangements during the notice period.Using the wrong termination letter
This letter is suitable for terminating a consultancy agreement with a consultant. It is not suitable for terminating an employee’s employment. In that case, the Termination Letter should be used.Losing the signed copy
Without a signed copy of the termination letter, there is no evidence of when the consultancy agreement was terminated. Signed contracts and letters can quickly and easily be saved on the PocketLaw platform so that they are securely stored.
Disclaimer:
Please note: Pocketlaw is not a substitute for an attorney or law firm. So, should you have any legal questions on the content of this page, please get in touch with a qualified legal professional.
ISO 27001 certified and GDPR compliant. Data encrypted at rest with AES 256 and in transit with TLS 1.2+.
For information on how to unsubscribe, as well as our privacy practices and commitment to protecting your privacy, check out our Privacy Policy.
Sep 15, 2022
Anti-Bribery and Corruption Policy Guide & Template
In-depth insights into anti-bribery & corruption policies. Learn how to formulate an effective policy to protect your business & ensure legal compliance.
Sep 15, 2022
How to Write an Offer Letter
Learn how to write a compelling job offer letter that secures your next top talent. Expert advice for employers. Find out more from Pocketlaw
Oct 4, 2022
Employment Agreement - Indefinite Term (Simple)
Navigate the essentials of an indefinite term employment agreement with ease. PocketLaw's Content Hub provides you with a simplified guide.