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An Explanation Letter to Employee is a crucial document used in various employment situations where formal written communication is necessary or legally required. Typically used for explaining disciplinary outcomes, changes in employment terms, investigation results, or responses to grievances, this document ensures clear communication and legal compliance. Under English and Welsh law, such letters must be carefully drafted to meet employment law requirements and often form part of the official employment record. The letter should be clear, factual, and comprehensive, providing the employee with all necessary information while maintaining professional tone and legal compliance.

1. Letter Header: Company letterhead, date, recipient details, reference number

2. Subject Line: Clear indication of the letter's purpose

3. Context: Background information explaining why the letter is being sent

4. Main Message: Clear explanation of the specific situation or decision

5. Next Steps: What actions are required or will follow

6. Closing: Signature, contact details, position of sender