5 Best Employee Termination Letter Templates

Writing a termination letter is never easy but a necessary part of every employer’s responsibility. Although there are different termination letter samples to guide you, companies need to be aware of how they handle an employee’s termination to eliminate the chances of legal claims.

For that reason, in this article, we share tips on how to write a termination letter highlighting what to include in every section as well as 5 termination letter samples to make your writing process a lot easier.

What Is A Termination Letter?

A termination letter is an official written statement that informs an employee at the end of their employment with a company. It is usually given from an employer to an employee. An employee termination letter can also be referred to as a notice of termination, pink slip, letter of separation, or termination statement.

It is often said that a termination letter brings some kind of closure to affected employees. Why not learn to write a good one?

Why Is A Termination Letter Important?

Drafting a termination letter is essential for different reasons, here are some common grounds for writing one:

1 An employee termination letter shows and justifies the employer’s reason for dismissing an employee. This is also important for maintaining a written record in case of a legal dispute between both parties. While facts keeping accurate documentation falls on the employer, it can also be helpful to an employee to keep records for the grounds of firing in case of future disputes.

2 Being dismissed from a job is never a cinch. Most times providing an employee with a termination letter gives them the time to take in the situation. This can also serve as a form of closure to the employee especially when written respectfully and compassionately. Plus including the date, compensation and benefits give them an idea of the next step to take.

3 Termination letter in the case of an employee removes any claims that the employee decided to quit. In some cases, companies may diminish the fact that the employee was laid off especially for termination without cause. 

4 While a termination letter is a way to show professionalism by the company or employer, the employee might claim they were laid off without reason or notice. A letter of termination could be essential to avoid situations like this.

How To Write A Termination Letter

There are six important things to include when drafting a termination letter. It is essential to include necessary information in detail, and be direct, honest, and professional as possible. If you are interested in learning how to write a termination letter to finalize the decision, here are the key aspects to take note of:

1 Date Of Termination: A termination letter to the employee sample contains the effective date of dismissal while informing the employee of the termination. This is usually stated in the first line after addressing the employee who is receiving the letter. 

2 The Grounds For Laid Off: Here it is important to clearly state the reason for the termination. Be direct and maintain professionalism, you should explain if you are ending the business contract, if the termination is without cause or if the termination is with cause. If there is a cause, you should give scenarios to support your grounds for firing.

3 Information On Compensation And Additional Benefits: The below free termination letter template provides information on whether or not there would be a severance pay and other benefits and so should any termination letter. Share information on benefits like health insurance and similar. Also, ensure to detail what they can expect during their last days and when additional benefits will stop.

4 Returning Company’s Asset: You can list the necessary company values that the employee needs to return. Doing this ensures that the valuable assets of the company are returned and nothing is left out.

5 Agreed Signed Documents: Employees should have to maintain a non-closure agreement even after they are laid off. Whether this was during the hiring period or their stay in the organization, they need to be reminded about the agreements between both parties. You can provide a copy of such an agreement as a reminder.

6 Information On Contacting Human Resources: Finally, as the below free termination letter template provides information on who to contact for further questions so should any termination letter. The human resource representative could be from your company or a different company. Typically to answer questions on compensation and additional benefits going forward.

Termination Letter To Employee Sample

Here is a basic free termination letter template you can use when drafting your own termination letter samples.

Dear [ Employee’s Name], 

We are writing to inform you that you have been laid off from the position of [job title] which will be effective from [due date]. With regret, this layoff is due to the lack of funds necessary to continue work. For this reason, the decision of the layoff is final.

We wish to reassure you that this layoff is not due to your performance or as a result of any fault from you. We have enjoyed your time in the organization.

You will also receive [a list of benefits and compensation]. These benefits will last for [length of time] and will be processed immediately when you leave the company. 

The [a list company’s property] are also to be returned. 

Please reach out to [name of Hr representative and contact information] in case you have questions regarding the benefits, compensation or anything to be clarified. 

Thank you for your time in the company and we regret any inconvenience this may cause. We wish you the best going forward and success in the future.

Yours Sincerely,
[Name of Person handling termination],
[Title],
[Signature].

Example Termination Letter Samples

In case you need to write a termination letter for different situations, here is a list of a few examples:

• Employee termination letter without cause
• Termination letter to employee sample for poor performance 
• Sample termination letter for employee benefits 
• Employee termination letter due to lengthen absence 
• Termination letter sample for probationary employee 

Employee Termination Letter Without Cause

This basic free termination letter template or sample can be used when the company has no specific reason for laying off an employee

Dear Howard, 

With regret, we are writing this letter to inform you that your employment with ABC company will end on June 6th,2018. Unfortunately, this decision is finalized.

You would also receive compensation for this month and a paycheck for the remaining leave, plus a severance pay of $50,000.

As for your health care insurance benefits, they will last for 60 days after your termination. Please we request you return the company’s car, laptop, and credit card before you leave.

Keep in mind you signed a non disclosure agreement document, please review the document attached to be informed of the requirements.

If you have further questions considering the severance pay, signed police, or similar, please reach out to Mrs. Juliet via Juliet299@gmail.com

Yours truly,
[Name of Person handling termination],
[Title],
[Signature].

Termination Letter To Employee Sample For Poor Performance 

When an employee’s performance remains stagnant after different periods of training or performance evaluation you might need to turn to end the contract

Dear Ely,

It is unfortunate that we have to inform you of the termination of employment as the payroll clerk with ABC company. This termination is due with immediate effect as of August 2nd, 2015.

While this decision is final, this termination is for reasons based on your continuous poor performance at ABC company. During the last five months, your performance hasn’t shown any signs of improvement and your work has failed to meet the company’s expectations.

As agreed, after the oral warning has been passed, a final written statement for the termination of employment will follow if your performance doesn’t meet the company’s expectations.

Payment for leaves as well as your severance pay will be mailed to your provided resident address. Please reach out to the HR department in case you have questions or additional queries.

Thank you for your time at ABC company and we wish you success in the future.

Sincerely,
[Name of Person handling termination],
[Title],
[Signature].

Sample Termination Letter For Employee Benefits

Here is to inform employees about the termination of their benefits including reasons for eliminating the benefits and what day it starts

Dear Emily, 

We analyzed records concerning researched based activities at ABC company following the last year and we noticed you have been inactive in carrying out research for the company since May 5th, 2020 till now.

This letter is to formally inform you that you are no longer eligible to receive research compensation from ABC company. Going forward, any benefits related to research compensation will be terminated with effect on November 29th,2021. Please review the attached documents to get information on your continued benefits and packages.

Sincerely,
[Name of Person handling termination],
[Title],
[Signature].

Employee Termination Letter Due To Lengthen Absence

Breaks and vacations are needed for employees’ well-being, but continuous unexplained absences may not be tolerated for long.

Dear Jonah,

We regret to inform you that your position as software engineer at ABC company will come to an end on June 19th, 2015.

This decision was made due to the unexplained and continuous leave of absence you have taken from work for long periods.

You will have access to health insurance benefits for 90 days as well as severance pay according to the company’s policies. 

We request for you to return the company’s laptop and swipe card as part of the organization’s assets. Please be reminded to review the attached document for the signed agreement and confidentiality.

Mr. Gregory will be available to answer any questions you may have regarding your severance pay, insurance benefits, and similar. You can contact him to discuss necessary concerns and to process termination.

Thank you for your service. We wish you the best in your future endeavors.

Yours Truly,
[Name of Person handling termination],
[Title],
[Signature].

Termination Letter Sample For Probationary Employees

This letter is for employees whose employment is yet to be decided but might not be a good fit after a period of probation which normally lasts for about 90 days.

Dear Steven,

We recognize how much effort you put in for your position as a data scientist at ABC company during your 90 days probation period. 

With regret, the results did not meet our expectations at ABC company. We are officially writing this letter to let you know that your employment with ABC company will be terminated on April 18th, 2019.

Be assured that all outstanding salary will be processed and mailed to your resident address on the next payment date which is May 20th,2019.

Thank you for your contribution and we wish you success in the future.

Yours Sincerely,
[Name of Person handling termination],
[Title],
[Signature].

Conclusion 

A letter to communicate the end of an employment will always be a part of the workplace occasionally. Though not easy, it shows you respect the employee and you can maintain professionalism. We hope the above termination letter samples will make the process a bit easier.

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