Termination Letter Template - Performance, Cause - Free Download [2020]

termination letter

A termination letter is a notice to an active employee, normally on behalf of the human resources department, informing them of their termination. And the reasons for their termination. The termination letter is also referred to as a letter of termination, letter of separation, notice of termination of employment, termination of employment contract, and contract termination letter.

Contained within the termination letter is a few pieces of information:

The employee termination process can be difficult. Before an employee termination letter is delivered, the human resource department conducts a termination meeting. This is where the employee is informed of their infractions and the reason for the employee termination.

After the meeting is conducted the termination letter informs the newly terminated employee about their severance package, termination date, any company policy violations, employee handbook violations, and information regarding their final pay. The employee may be terminated on the delivery of the notice, which would conclude the termination process.

In the event that the employee holds an employment contract, they may have terms in their contract that dictate the termination. And termination period. This would include a set amount of time that the employee is granted to find another position, health insurance and health care benefits that will be upheld, and information regarding their final paycheck and severance.

A termination differs from a layoff. A termination has clear termination reasons. Employers should understand the difference between proper termination and wrongful termination. For example, the termination decision being an employee’s poor performance and the termination of an employee because you don’t agree with their viewpoints. Wrongful termination can result in potential legal counsel (a lawyer) being secured by either party and the reasons for dismissal being brought to your business as a liability. Though, these are rare considering most employees are considered “at-will” employees and the reason for termination is not often provided.

If you are seeking to layoff a group of employees, you should write a layoff letter and not an employment termination letter.

After the effective date of termination has passed, the resulting employment termination has finished. Meaning the employment agreement that they had signed with you, the employer is null and void.

Termination, based on each state, has eligibility for unemployment benefits and pay. As a manager, you should consult your human resources department regarding the potential implications of the employee’s termination before you decide to proceed.

Below are termination letters that you can use as both a termination letter template for your business and a sample letter to learn what a full job termination letter should look like before you decide to deliver it.

Sample Termination Letter

Below is a sample employee termination letter.

November 1, 2020

Dear Mr. Smith —

This employment termination letter is being used to inform you that your employment with XYZ Company will end on November 1, 2020. This decision has been heavily considered and cannot be altered.

You will receive your final paycheck for your most recent pay period and payment for remaining leave today. Once you have signed and returned this letter, with the attached release claims, you will receive severance pay in the amount of $12,000.

All health care benefits will remain in effect for another 90 days.

You are being asked to return any company property including company laptops, office keys, cell phone, and email addresses before the end of the day today.

Please review the confidentiality agreement that you are signing in order to receive your severance.

If you have any questions regarding compensation, your employment benefits, company property or policies, please contact the HR representative Jane Smith at 776-884-9988.

Thank you for your time,
Ian Smith

Termination Letter Template and Contract Termination Letter Template

Below is a sample employee termination letter and letter template that you can use to create your own company termination letter.

[Current Date]

Dear [Last Name] —

This employment termination letter is being used to inform you that your employment with [Company Name] will end on [Period End Date]. This decision has been heavily considered and cannot be altered.

You will receive your final paycheck for your most recent pay period and payment for remaining leave today. Once you have signed and returned this letter, with the attached release claims, you will receive severance pay in the amount of [Severance Pay Details].

[Health Insurance Benefits Information]

You are being asked to return any company property including company laptops, office keys, cell phone, and email addresses before the end of the day today.

Please review the confidentiality agreement that you are signing in order to receive your severance.

If you have any questions regarding compensation, your employment benefits, company property or policies, please contact the HR representative [HR representative name and contact information].

Thank you for your time,
[Name of employee handling the termination]
termination letter

Termination Letter Template

Download this termination letter template in Microsoft Word format. Instant download. No email required.

Download Template

FAQ’s

Questions and answers from employers.

Are termination letters required by law?

Most states do not require you to deliver an employment letter of termination in order to terminate the employment relationship. Additionally, this applies to providing a reason for termination. Most employees are considered “at-will” employees. Which provides employers with the ability to not have to describe in detail their reason for termination.

How can I avoid a wrongful termination?

You should look over your company policies and handbook to understand the reasons for the termination. And ensure that they are legal. You should keep and concise records of all infractions, insubordination, and performance violations.

Can a former employee claim a wrongful termination?

In the event that the employee has signed all documents releasing their employment, they cannot return and suggest that their reason for termination was wrongful.

author: patrick algrim
About the author

Patrick Algrim is an experienced executive who has spent a number of years in Silicon Valley hiring and coaching some of the world’s most valuable technology teams. Patrick has been a source for Human Resources and career related insights for Forbes, Glassdoor, Entrepreneur, Recruiter.com, SparkHire, and many more.

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