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Client Disengagement Letter Template for Australia

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Key Requirements PROMPT example:

Client Disengagement Letter

"I need a Client Disengagement Letter for our accounting firm to terminate services with a corporate client due to a conflict of interest, with the disengagement to take effect from March 1, 2025, including transition support recommendations and detailed handling of sensitive financial documents."

Document background
The Client Disengagement Letter is a crucial document used when a professional service provider needs to formally terminate their relationship with a client in the Australian jurisdiction. This document becomes necessary in various situations, including when there are irreconcilable differences, conflicts of interest, non-payment of fees, or when the service provider can no longer meet the client's needs. The letter serves multiple purposes: it clearly documents the termination decision, sets out the timeline for disengagement, addresses outstanding matters and fees, outlines document handling procedures, and provides guidance for transition to alternative service providers. Operating under Australian law, the document must comply with professional standards, consumer protection legislation, and industry-specific regulations while maintaining professional courtesy and protecting both parties' interests.
Suggested Sections

1. Letter Header and Date: Formal business letter header including sender's details, recipient's details, and date

2. Client Reference Information: Relevant client and matter reference numbers or identifiers

3. Opening Statement: Clear statement of the letter's purpose regarding the termination of the professional relationship

4. Reason for Disengagement: Professional and objective explanation of why the relationship is being terminated

5. Effective Date: Clear statement of when the professional relationship will end

6. Current Matter Status: Summary of the status of any current matters or projects

7. Outstanding Fees: Details of any outstanding fees or final billing arrangements

8. Next Steps: Clear outline of what actions the client needs to take

9. Document Return/Retention: Information about the handling and return of client documents and records

10. Closing Statement: Professional closing including any referral offers and expression of appreciation

Optional Sections

1. Referral Information: Include when providing specific recommendations for alternative service providers

2. Transition Assistance: Include when offering specific support for transitioning to a new service provider

3. Ongoing Obligations: Include when there are continuing obligations that survive the termination

4. Regulatory Notifications: Include when specific regulatory bodies need to be notified of the disengagement

5. Conflict Matters: Include when there are potential conflicts that need to be addressed

6. Limitation Periods: Include when there are important deadlines or limitation periods the client needs to be aware of

Suggested Schedules

1. Schedule A - Outstanding Matters List: Detailed list of any unfinished matters or projects with their current status

2. Schedule B - Final Fee Statement: Detailed breakdown of any outstanding fees and expenses

3. Schedule C - Document Inventory: List of all client documents and records held and to be returned

4. Schedule D - Handover Checklist: Checklist of actions required for successful transition of services

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




















Clauses




















Relevant Industries

Legal Services

Financial Services

Accounting and Tax

Management Consulting

IT Services

Healthcare Services

Engineering Services

Architecture Services

Marketing and Advertising

Business Advisory

Real Estate Services

Insurance Services

Professional Services

Relevant Teams

Legal

Compliance

Risk Management

Client Services

Operations

Administration

Professional Standards

Quality Assurance

Document Management

Client Relations

Business Development

Senior Management

Relevant Roles

Managing Partner

Chief Executive Officer

Practice Manager

Client Relationship Manager

Risk Management Officer

Compliance Officer

Legal Counsel

Operations Manager

Account Manager

Service Delivery Manager

Professional Services Director

Client Services Manager

Business Unit Head

Department Director

Senior Partner

Engagement Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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