A termination letter is a document an employer issue to their employee when they are no longer interested in the services of the employee. An employer may terminate an employee due to unacceptable behavior, under-performance, incompetence, layoffs, or any other valid reason.
The letter informs the employee when their employment will be terminated, how they’ll get their benefits, final paycheck, and any other relevant information.
How to Write an Employment Termination Letter
- Before writing the letter, it’s essential to contact the company attorney to know if the termination is in line with the employment laws in your country. For example, in some countries, the employer is required to serve a notice to the employee or issue a severance pay.
- Consult the employee’s immediate supervisor and decide on the last day of employment for the employee.
- Gather information an all relevant policies regarding employee termination in your company so that you can share it with the employee in the letter.
- Consider using a template or sample termination letter to make writing the letter easier. After writing the termination letter, edit and proofread the letter and have someone else go through the letter to check if it has any errors or omissions.
What to include in an employment termination letter
- Name and designation of the employee
- Reasons for the termination
- The effective date of the termination
- Employee compensation and benefits
- Any company items that must be returned
- Contact details
- A reminder of the employment contract
Employment Termination Letter Format
Dear (employee’s name),
I regret to inform you that from (termination date), you will no longer be an employee of (company name). As we had discussed before, this is the best decision we can make as a company due to (reason).
From (termination date), you will no longer be able to access (company offices/website, etc. All company property in your possession must be surrendered to the HR office by (date).
You receive your salary for up to (date); additionally, you’ll be compensated for all your pending leave days. You will also receive a severance pay amounting to (amount).
Please remember you have signed a non-disclosure, non-compete, and non-solicitation agreement. In line with this, you are requested to delete any customers, company, employees, or stakeholder’s information in any of your personal devices.
If you need any clarifications about this matter, please contact my office.
Wishing you all the best in the future.
(Your name and signature)
Sample Employment Termination Letter
Dear Ms. Thompson,
Over the last three years, our company has been going through a very tough time economically. In the past two years, we have explored many options to deal with the challenge, including introducing new products, but all our efforts have been in vain. This has led as to consider eliminating a number of positions in the company to reduce our overhead costs.
It’s with deep sorrow that I inform you that your position will be eliminated effective (date).
Our Human Resource manager will get in touch with you in the next week to discuss the modalities. We have confidence that you will land a job soon, considering your diligence, commitment, and experience.
We appreciate your commitment to making Eagles Technologies what it is today.
We wish you the best.
Eagles Technologies ltd