How To Write Termination Letters (With Examples)

If you’re a manager, it’s an unfortunate reality that you’ll likely need to terminate an employee at some point in your career.

While this is never a fun task, it is possible to do it gracefully, and one of the ways you can do this is by putting effort into writing a clear and professional termination letter.

While this letter shouldn’t be the only notification an employee gets and instead should follow a meeting where you explain what’s happening to them in person, it can help clear up any questions and make the process go more smoothly.

It’s also a legal document that will go into the company’s permanent files. That way, if a disgruntled employee tries to sue the organization for wrongful termination, there is a record of what actually happened. Because of this, it’s essential to talk to your lawyers and follow their advice when you’re writing a termination letter.

In this article, you’ll learn the basics of writing termination letters.

What to Include in a Termination Letter

1. The name of the employee and company, and the date of the letter. This is a legal document, so including these details, while it may feel unnecessary, is very important.

2. When the termination goes into effect. Is it effective immediately or on a specific date? Be sure to include this in the letter, preferably early on, so that it’s easy to find.

3. The reasons for the termination. As always, check with your lawyer about what you should and shouldn’t include, but it’s generally a good idea to explain the reason for the termination.

4. Any warnings or corrective steps you’ve given the employee. Again, check with your lawyers, but it’s typically wise to detail the previous warnings, additional training, or other corrective steps you’ve given the employee up to this point.

5. What occurred at the termination meeting. Since you’ll be giving the termination letter to the employee after you’ve talked with them (and because it’s a legal record), it’s also a good idea to include an overview of what happened at the termination meeting.

   At the very least, you should mention that there was a termination meeting and that this letter confirms what was talked about there.

   Your lawyers may also want you to mention that the employee signed a non-compete, non-disclosure, or separation agreement during the meeting, so be sure to check with them on this.

6. An explanation of their benefits. You need to inform your employees about what will happen with their benefits, even if you simply tell them that you will be sending them more information later.

7. What happens with their final paycheck. The termination letter should also include details about any severance pay. These details should also include any information about their final paycheck and any payment they’ll receive for unused vacation or sick days, as well as how they will be receiving this money.

8. Any other details about company property the employee needs to return. If they have a key card, computer, or another piece of equipment they need to return, it’s a good idea to list this in the letter. If they’ve already returned it, mention that as well.

9. A request for contact information. End the termination letter with a request that the employee keeps their contact information updated with the company so that you can mail them any additional information, forms, or documents.

Categories of Termination Letters

There are many reasons companies decide to terminate employees, and each reason needs a different type of termination letter.

• Furlough or layoff. Companies that need to let employees go for economic reasons may need to furlough or lay them off. If you need to write a letter to your employee about this, be sure to include all of the information above, especially information about severance packages or salaries they will still be receiving.

  You should also consider including a note of thanks or explaining that their performance isn’t the cause of the termination.

• Termination of business contract. If you’ve hired freelance or contract workers, there will likely come a time when you need to part ways. This letter should contain a note of thanks and any details about projects that are still due or invoices that the employee still needs to send.

  It’s imperative to avoid burning bridges in this situation since you may want to hire them again in the future.

• With cause. When you fire someone for cause, it’s vital that you talk with your lawyers about what you should include in the letter.

  This is for your company’s benefit, as the letter will go into the organization’s permanent records in case of a termination lawsuit down the road.

  Here are three common reasons you might fire an employee for cause:

  1. They are performing unsatisfactorily. If you’re firing your employee because they’re performing poorly, it can be difficult to fully describe how they aren’t meeting standards. Talk to your lawyers about what you need to say, and add as many details as possible to the termination letter.

  2. They had a poor attendance record. If you need to let an employee go because of poor attendance, it’s essential that you lay out why their attendance was poor, how you helped them correct it, and any steps you took to make sure the absences weren’t legitimate.

  3. They couldn’t adapt to change. Another common reason for needing to let someone go is that they couldn’t adapt to changes within the company or in their position’s duties. This is another case when it’s vital to outline the steps you took to train and support the employee in being able to adapt and why they still weren’t performing to satisfactory levels.

3 Termination Letter Samples

Final Thoughts on Termination Letters

1. Be respectful and direct. No matter why you need to terminate an employee, it’s important that you do so respectfully and kindly. Don’t beat around the bush, and don’t be overly friendly, but being courteous can help the process go much more smoothly.

2. Talk to your lawyers. Termination letters are important to get right, so be sure you involve your HR department and lawyers in the process whenever you can. Follow their advice because it may save your company a lawsuit down the road.

3. Deliver the letter at the meeting or send it immediately afterward. A termination letter shouldn’t be the first time an employee hears that they don’t have a job anymore. Instead, it should be a confirmation and written record of the details you covered in a meeting in person.

Author

Abby McCain

Abby is a writer who is passionate about the power of story. Whether it’s communicating complicated topics in a clear way or helping readers connect with another person or place from the comfort of their couch. Abby attended Oral Roberts University in Tulsa, Oklahoma, where she earned a degree in writing with concentrations in journalism and business.