Normally when we enter into contracts with any vendor, the contract period is clearly defined and mentioned but sometime, we need to end the contract before the said period.
In any case, it is always advisable to send them the contract termination letter.
The letter should mention effective date of termination of contract, time to settle the final amount and expressly disallowing them to use your company name and logo (if not mentioned in the original contract, even if it is mentioned, please mention it again)
Why?
1. There may be charges for contract period, if you do not mention the termination effective date the bad vendors may charge you for the period
2. The vendor’s service may not be satisfactory but he/ she may use your brand name and logo to show you as a client and it will be misused (usually if a vendor has good name in its client list, naturally other organisation will think to give business)
3. Why statutory payment deduction- because if you have hired a contractor providing labour on contract basis and he defaults any statutory payment like PF, ESIC, principle employer is liable for the default.
Please see the format of contract termination letter.
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Dear, can you please suggest me how prepare a termaination letter to send it my comany Manager who cheated our company by collecting (amount)Rs,50000/- from other employees, and also he made wrong promises with them, and also harassment of lady Staffs by saying very bad words about them,