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Full Termination Settlement agreement pack

Rejection of settlement offer response letter

£7
Word count
Template words
72
Reading time
Reading time
5 mins

This letter confirms an employee’s rejection of a settlement offer and notifies them that disciplinary or capability proceedings will continue.

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What is a Rejection of settlement offer response letter?

This letter formally records that the employee has declined a settlement offer made by the organisation.

It ensures clarity by confirming that the offer is no longer under consideration and that the organisation will continue with its established disciplinary or capability procedures.

Using this letter helps maintain transparency, provides a clear audit trail, and reduces the risk of dispute over the process followed.

Best practice timescale for this to be issued
When should this letter be issued?
As soon as the employee rejects the offer, so that disciplinary / capability proceedings can continue
Issued by who, to whom
Who should issue this letter, and to whom?
The Employer (you) to the Employee
Applicable legal jurisdictions
In which jurisdictions can this letter be used?
Great Britain & NI (United Kingdom), Worldwide

Sequence

Previous step
Letters
Settlement agreement cover letter template

Use this model letter when you have reached a settlement agreement with an employee who will be leaving your employment as a result, to enclose the settlement agreement.

This step
Rejection of settlement offer response letter template

Rejection of settlement offer response [Delete this line]

[Company name]

[Sender address]

 

[date]

[Recipient name]

[Recipient address]

 

Dear [Recipient first name],

 

Re: Settlement Offer

I write to confirm that you have chosen not to accept the settlement offer discussed with you on [date].

As such, the offer is withdrawn and will not be revisited. Accordingly, the organisation will now continue with the [disciplinary | capability] process as previously outlined.

You will receive the necessary communication in relation to the next stage in due course. If you have any questions regarding this letter, please contact [HR/Manager Name].

Yours [faithfully | sincerely],

 

 

[Sender name]

[Sender job title]

[Sender telephone]
[Sender email]

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rejection of settlement offer response letter