Employment Termination letter

3 Employee Termination Letter Templates

In the world of business, terminations are a difficult yet necessary HR task. When you are communicating a termination, you want to remain professional and considerate while conveying the company’s decision to let a staff member go. One of the best ways to ensure this clear communication is through a termination letter.

In this article, we’ll cover what to include in a termination letter, as well as provide three termination letter templates based on the cause for termination.

 

What to Include in Your Termination Letter

Depending on why you are terminating an employee, what you include in the termination letter may vary. However, each termination letter template will include the following information:

  • The employee’s termination date
  • Information about next steps regarding benefits, final paycheck, and W-2 expectations
  • HR contact information

 

These letters should be sent after a verbal discussion has been completed confirming the termination and next steps. A face-to-face discussion is best; however, a phone conversation works too. In most cases, HR and the employee’s manager should deliver the notice.

 

1. Sample Termination Letter Without Cause (Due to position Elimination, Layoff, or Downsize)

If you are terminating an employee due to business needs, such as downsizing or department-wide layoffs, and the termination is not due to the fault of the employee, the following sample termination letter without cause will help to convey pertinent information to your employee.

[Month Day, Year]

Dear [Employee Name],

This letter serves to inform you that your employment with [Company Name] is terminated as of [date of termination].

During the past [timeframe], our company has faced [business issues leading to downsizing or layoffs]. Unfortunately, we must reduce our workforce to ensure financial stability for the business. We regret to inform you that your role as [insert employee’s job role] is part of our company-wide reduction.

You can expect your final paycheck on [insert date].

(Note: If your company will provide a severance payment, include this information here; e.g., “Included with this letter is a separation agreement outlining a severance package we are offering you.”)

Your benefits [list any other relevant benefits here] will remain in effect until [date].

If you have further questions regarding your termination or specific requests, you may contact your HR representative via the information below:

[HR contact information, including email and phone]

Thank you for your time with [Company Name]. We wish you the best going forward.

Sincerely,

[Name]

 

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2. Sample Termination Letter for Unsatisfactory Performance or Misconduct

If you need to terminate an employee due to cause, you might use a termination letter for poor performance. The following template is a good starting point, allowing you to customize the letter according to the reason for termination.

[Month Day, Year]

Dear [Employee Name],

This letter serves to inform you that your employment with [Company Name] is terminated as of [date of termination].

Your employment has been terminated due to [add reason(s) here].

(Note: Keep these reasons concise and professional, highlighting specific dates of employee negligence or misconduct when possible. For example: On January 24, 2022, you were absent from work without approved leave.)

On [insert date], your final paycheck will be mailed to your address on file. Your benefits [list any other relevant benefits here] will remain in effect until [date].

(Note: You may need to list out different benefits and end dates separately.)

If you have not already, please return your [company equipment, IDs, etc.] by end of day or coordinate the return with [Appropriate Person]. If you have further questions regarding your benefits or final paycheck, you may contact your HR representative via the information below:

[HR contact information, including email and phone]

Sincerely,

[Name]

 

3. Sample Termination Letter for the End of a Contract

A contract termination letter allows you to officially communicate the end of a business agreement with a contracted employee. Use this letter to ensure that project requirements are met and invoices are finalized.

[Month Day, Year]

Dear [Employee Name],

This letter serves to inform you that as of [date of termination], we will no longer require your services at [Company Name].

We appreciated working with you over the past [timeframe], but due to [reason for terminating contract], we will be terminating our employment contract with you.

All outstanding work is to be completed prior to [date], and we request that you provide us with all pending invoices by [date].

As of [date], you will no longer have access to the business’ internal systems, and we request that you turn in your temporary ID badge by [date].

We wish you all the best as you go forward. If you have further questions about your contract with our business, please contact [Insert Contact Information].

Sincerely,

[Name]

 

As a manager or HR representative, you will be interacting with employees throughout many stages of the employee lifecycle. From the time you first interview a potential employee to the day you send a notice of termination of employment, there are many cases where sending professional communications to an employee is a must. To ensure you are prepared for every stage, check out our 11 Templates Every Hiring Manager Needs.

By iHire | March 07, 2022