FREE What Is a Termination Letter? [ With Samples ]

There comes a time when there is a need for you to let go of an employee. Whether it be for financial constraints in the company or due to poor performance, sometimes, letting go is the solution you need in order to make the company a bit more sustainable.

If it is your first time to write termination letters, today is your lucky day! We will give you a good idea about what termination letters are and how you can write employment termination letters. Furthermore, we have also provided a few termination letter samples that you can use as a reference in writing your very own termination letters. Continue reading to find out more about termination letters.

Sample Contract Termination Letter

Sample Lease Termination Letter

Sample Termination Letter

Sample Employee Termination Letter

Letter of Termination Sample

Defining a Termination Letter

Termination letters are used to notify an employee that his/her services are no longer needed in the workplace. It will reflect the details why the employee is being terminated from his/her post and to make sure that things will end up smoothly without any misunderstandings.

How to Write an Employee Termination Letter

The thought of handing an employee termination letter to one of your employees, regardless of the reasons why they are being terminated, can be pretty difficult. However, these decisions are done especially if you see that an employee is not a good fit with what the company needs. To make sure that everything about the termination is in order, you have to be specific with the details of the termination to guarantee that misunderstandings will be avoided at all times. You should also remember that before you come up with the decision of terminating an employee, you followed the proper protocol of giving out warning letters or notices.

In this section, we will walk you through on how to write an employee termination letter.

Preparing to Write the Termination Letter

• Review the employment relationship the employee has with the company. 
  • Determine if there are any existing anti-discrimination laws in your state.
  • An “at will” employment does not have any protection against a legal termination.
• Read through your company’s employment contract. Determine if you have followed the proper steps to come up with the termination decision. Make sure that you read through the list of example circumstances where an employee may be terminated from the company, if any.
• Do you have enough evidence to support the decision? Make sure you have proper documentation why you came up with the decision and determine whether your reason for terminating is a valid reason. Some documents that might support your decision are:
  • Employee evaluation forms
  • Warning letters
  • Notice letters
• Ask for legal help. There are a lot of state laws that you must determine in order to end an employee’s employment in a legal manner. Consulting a lawyer or your company lawyer can be of great help.

 

Making the Termination Letter Draft

• Use a company letterhead. Make sure all of your company’s details are reflected in your company letterhead. Below your letterhead, about two spaces, write down the date the letter was drafted. Two spaces after the date, you should write down that this letter is confidential. That way the employee will know that he/she should not show this letter to anyone else.
• Be straightforward. Directly state that this letter is written because he/she is being terminated. Make sure you also include the effective dates of termination to make things even clearer.
• Further explain the reasons for termination. Let your employee know why he/she is receiving a contract termination letter. If you are terminating an employee’s employment due to poor performance, make sure to include the instances when he/she has been warned. Attach any available documentation about the performance.
• Final pay details should also be included. State all the important details about how and when the final paycheck will be available for claiming.
• Explain that you want all company property to be returned. Let him/her know how they can do so. Make sure to leave your contact details so they will know how to contact you.
• Remind the employee of any non-competition or non-disclosure agreements. Should they have signed any NDA or NCA, you may remind them in the letter.
• Offer help. If you are parting on good terms, you may let them know that you are willing to give an employer recommendation letter should they need one.
• Affix your signature. It will also be a good idea to leave some space where the employee can affix his/her signature as a means of acknowledging the letter.
• Enclose all the necessary attachments. This may include performance reviews and other relevant documents regarding the termination.

 

Sample Termination Letter for Poor Performance

Letter of Termination of Employment in DOC

Sample Termination Template

Sample Termination Letter without Cause

Employment Termination Letter Sample with Cause

Once you have handed out the termination letter to the employee, make sure that you keep a copy to add to the employeee profile for future reference. The copy you have will be handy when it comes to lawsuits or when the employee applies for another position in the same company somehere in the future. You should also keep a record of all the documents you have that would suggest you did your best to prevent the said termination.

We are hoping you gained a better understanding of what termination letters are and how to terminate contracts in the workplace. Just follow all of the tips that we have for you and do not hesitate to download any or all of the free samples that we have on this website.