Termination Letter Template - Performance, Cause - Free Download for 2020
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:
- A notice of termination.
- Effective date of termination or notice period.
- Factual reasons for termination.
- Compensation or severance pay.
- Salary that is owed.
- Company property that must be returned.
- Company policies that are hereby terminated.
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.
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.
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.
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