What is Termination Letter?
A termination letter is a formal document, which communicates to an employee the end of the employment relationship. They are usually sent out during involuntary terminations and contain reasons, final details, and any severance or benefits information pertaining to that employee. In essence, these letters document the termination process, what both the employer and employee owe one another, and minimize any risk of engaging in a lawsuit.
How to Write a Termination Letter
When drafting a termination letter, ensure professionalism and clarity. Key steps include:
Basic Information: Include the date, employee name, and title.
Direct Notification: Clearly state the termination decision.
Optional Reasons: Include reasons if aligned with policy and laws.
Final Pay: Outline severance, final paycheck details, and return of company property.
Appreciation: Thank the employee for their contributions.
Proofreading: Ensure the letter is free of errors and approved by HR if necessary.
Sample of Termination Email Template
1. Termination Email Template with Reason
Subject: Notification of Termination—[Employee Name]
Dear [Employee Name],
I regret to inform you that your employment with [Company Name] will end on [Date of Termination].
The reason for this decision is [provide a brief, clear explanation of the cause while avoiding unnecessary detail]. We value the contributions you have made during your time with us and recognize this may be a challenging moment for you.
Severance and Benefits:
You will receive a severance payment of [Amount] as per company policy.
Health insurance coverage will continue until [date], with COBRA options afterward.
Your final paycheck, including accrued leave, will be deposited on [date].
Next Steps:
Please return all company-owned items by [Date].
Complete outstanding tasks or projects outlined by your manager before departure.
We appreciate your dedication and are happy to provide a recommendation letter if needed. We wish you success in your future endeavors.
Sincerely, [Your Name] [Your Title]
2. Termination Email Template for Poor Performance
Subject: Performance Review and Employment Separation—[Employee Name]
Dear [Employee Name], I hope this message finds you well. I wanted to follow up on our recent conversations about your performance in the [Job Title] position. As we discussed, we have been focusing on improving your performance in [List 2-3 specific areas of concern]. We truly appreciate the efforts you have made to enhance your performance, especially with the support provided through [specific resources]. However, the [Job Title] role requires a specific skill set, and despite our best efforts to assist you, we have not been able to close the gap to meet those expectations. After careful consideration, we have made the difficult decision to terminate your employment with [Company Name], effective [Date of Termination]. We understand that this news may be disappointing, and we want to acknowledge your contributions during your time with us. Next Steps: Your final paycheck, which will include any accrued vacation or sick leave, will be directly deposited into your account on [Date]. You will continue to have health insurance coverage until [Date] (COBRA continuation options may be available after this date). Please reach out to the HR department for more information on your benefits continuation options. We kindly ask that you return all company property, including your laptop, phone, and badge, to the HR department by [Date]. We wish you the very best in your future endeavors and hope you find a position that aligns more closely with your skills and aspirations. If you have any questions regarding your separation or benefits, please feel free to contact the HR department at [HR Contact Information]. Sincerely, [Your Name] [Your Title]
3. Termination Letter Due to Insubordination
Subject: Termination of Employment – [Employee Name]
Dear [Employee Name], I am writing to formally notify you that your employment with [Company Name] will be terminated, effective [Date of Termination]. This decision has been made due to multiple instances of insubordination, which violate our company policies and the standards of professional behavior we expect. Some specific examples of your insubordination include: [List specific instances of insubordination, including dates and details. Focus on objective behaviour, not personal opinions.] These actions have disrupted the work environment and hindered your ability to fulfill your job responsibilities. Despite prior warnings, including [Mention any prior warnings or discussions that took place], we have not observed the necessary changes in your conduct. Next Steps: Final Paycheck: Your final paycheck, which will include any accrued vacation or sick leave, will be directly deposited into your account on [Date]. Company Property: Please ensure that all company property, such as your laptop, phone, and badge, is returned to the HR department by [Date]. We recognize that this news may be difficult to receive. However, we must maintain a workplace free from insubordination that affects the well-being of our employees. If you have any questions about your separation or final pay, please feel free to reach out to the HR department at [HR Contact Information]. Sincerely, [Your Name] [Your Title]
4. Termination Letter Template Without Cause
Subject: Notice of Termination of Employment – [Employee Name]
Dear [Employee Name],
This letter serves to inform you that your employment with [Company Name] will officially end on [Date of Termination]. We truly appreciate your efforts and contributions during your tenure with the organization.
Next Steps:
Severance and Benefits: [Include details of severance pay, continued benefits, or COBRA options, if applicable.]
Final Paycheck: Your final wages, including any accrued leave, will be deposited on [Date].
Return of Company Property: Please return all company items, such as [list items], by [Date].
Support Services: [Mention outplacement or transition support if available.]
We recognize this may be unexpected and apologize for any inconvenience caused. If you have questions about your final pay or benefits, please reach out to [HR Contact Information].
Wishing you success in your future endeavors.
Sincerely, [Your Name] [Your Title]
5. Termination Letter Template for Prolonged Absence
Subject: Employment Termination—[Employee Name]
Dear [Employee Name], I am writing to inform you that your employment with [Company Name] will be terminated, effective [Date of Termination]. This decision is due to ongoing attendance issues that have significantly affected your job performance and disrupted the workplace. Despite our previous conversations and warnings regarding your attendance on [Dates of previous discussions/warnings], we have not observed the necessary improvements. These discussions addressed [Mention the specific nature of the warnings or discussions, e.g., expectations for improvement, potential consequences of continued absences]. Some specific examples of your attendance issues include: [List specific examples of absences, including dates and reasons (if provided by employee)]. These absences have hindered our operational efficiency and placed additional strain on your colleagues. Next Steps: Final Paycheck: Your final paycheck, which will include any accrued vacation or sick leave (after deducting any unapproved time off), will be directly deposited into your account on [Date]. Company Property: Please ensure that all company property, such as your laptop, phone, and badge, is returned to the HR department by [Date]. We recognize that this news may be difficult to receive. However, regular attendance is crucial for all employees, and your record has not met the necessary standards. If you have any questions about your separation or final paycheck, please feel free to reach out to the HR department at [HR Contact Information]. Sincerely, [Your Name] [Your Title]
6. Termination Letter Template Due to Merger
Subject: Notification Regarding Employment Changes – [Employee Name]
Dear [Employee Name],
I am writing to inform you of the upcoming merger/acquisition between [Company Name] and [Acquiring Company Name], set to conclude on [Date]. After a thorough review of the combined organization’s structure, your position, [Job Title], will unfortunately become redundant, effective [Date of Termination].We deeply appreciate your contributions and assure you this decision is unrelated to your performance but reflects the strategic needs of the new entity.
Next Steps:
Severance and Benefits: [Outline details, including severance pay and benefits continuation.]
Final Paycheck: This will include accrued vacation and be issued on [Date].
Return of Property: Kindly return [list items] by [Date].
Transition Support: [Mention career support or outplacement services if applicable.]
Further updates on the merged organization and potential opportunities will be shared soon. Please contact [HR Contact Information] for any questions.Wishing you success in your next steps.Sincerely, [Your Name] [Your Title]
7. Letter of Termination of Contract for Violation of Business Ethics Policy
Subject: Termination of Contract – [Recipient's Name]
Dear [Recipient's Name],
This letter serves the due purpose of informing you that your association with [Company Name] is hereby terminated effective [Date of Termination]. This action has been taken due to a confirmed breach of the ethical code of conduct of our organization, particularly [Mention the specific section(s) of the ethics code violated]. On [Date], we received a report from [name/formal title of the person who reported the incident] regarding your involvement in [proceed to say what was clearly the unconstitutional act in absolute clear terms. Do not elaborate the matter further]. This practice is a gross violation of our trust, and it goes against the values of honesty, integrity, and ethics which this company promotes. Such behaviors may raise a set of concerns as they can gravely affect the nature of the county’s businesses and corporations until such a point where outsiders view it as unfit. Regardless of [Incorporate the accusations with a brief point about the probable reasoning for such action e.g, the opportunity presented to explain to situations], we have reached the conclusion that such a behaviour cannot be excused.
Next Steps:
Last Pay: The last pay will reach your account on [Date] and is expected to be cashless, that is it will be through electronic methods (after other due amounts are removed).
Assets of the Company: Accumulate in total all items of the organization that includes, laptop, phone, and badge, and pass these over to the Human Resources department not later than [Date].
8. Termination Letter Template for Probation
Subject: Termination of Employment During Probationary Period – [Employee Name]
Dear [Employee Name],
New version: This letter is to formally notify you that your employment with [Company Name] will be terminated, effective [Date of Termination]. This decision follows a comprehensive evaluation of your performance throughout your probationary period, which started on [Start Date of Probation] and concluded on [End Date of Probation].
Regrettably, your performance in the [Job Title] position did not align with the expectations set forth in the job description and your probationary agreement. In particular, [Optionally, but carefully, mention 1-2 areas where expectations weren’t met. Focus on objective observations, not opinions].
We value the efforts you have made during your time with us, but we have not seen the necessary improvements to move forward beyond the probationary phase.
Next Steps:
Final Paycheck: Your final paycheck, including any accrued vacation or sick leave, will be directly deposited into your account on [Date].
Company Property: Please return all company property, including your laptop, phone, and badge, to the HR department by [Date].
We wish you all the best in your future endeavours.
Should you have any questions regarding your separation or final pay, please don’t hesitate to contact the HR department at [HR Contact Information].
Sincerely,
[Your Name]
[Your Title]
9. Termination Letter Due to Company Closure
Subject: Important Notice – Closure of [Company Name] and Termination of Employment
Dear [Employee Name], I regret to inform you that we have made the tough decision to close [Company Name]’s operations, effective [Date of Closure]. This decision comes as a result of [Briefly state the reason for closure, e.g., economic downturn, industry changes], which has made it impossible for us to continue our business. Consequently, your employment with [Company Name] will end on [Date of Termination]. We recognize that this news may come as a shock and could cause disruption, and we sincerely apologize for any difficulties this may create. We are grateful for the contributions you have made during your time with us. Next Steps: Severance Pay and Benefits: [If applicable, provide details about any severance pay or continuation of benefits, including the date of your final paycheck and how to access COBRA options for health insurance.] Final Paycheck: Your final paycheck, which will include any accrued vacation or sick leave, will be directly deposited into your account on [Date]. Company Property: Please ensure that all company property, such as your laptop, phone, and badge, is returned to the HR department by [Date]. Outplacement Services: [If applicable, mention any outplacement services available to assist with your job search.] We understand that this is a difficult time for you. We wish you the very best in your search for a new position that fits your skills and aspirations. If you have any questions about your separation or benefits, please feel free to reach out to the HR department at [HR Contact Information]. Sincerely, [Your Name] [Your Title]
10. Termination Letter Template for Breach of Confidentiality
Subject: Termination of Employment – [Employee Name]
Dear [Employee Name], This letter is to inform you that your employment with [Company Name] has been terminated as of [Date of Termination]. This action has been confirmed to be the result of a violation of our company's confidentiality policy. On [Date], we were made aware that you had disclosed sensitive information to [Specify to whom the information was disclosed, if known].
This information includes [ Briefly describe the specific type of confidential information that was breached, without revealing sensitive details]. The confidentiality of our business information is crucial and one of our key success factors. The information you provided is a breach of our company's policy and a breach of trust.
We consider these offenses grave as they have a great possible impact on your competition and client relationships. Nonetheless, [Reference the listener motivating measure, if used, e.g., a chance to explain the situation], you will be possible for us to do this.
Next Steps: Final Paycheck: Your final paycheck will be directly deposited into your account on [Date] (minus any outstanding deductions). Company Property: Please return all company property, including your laptop, phone, and badge, to the HR department by [Date]. We understand that this news may be disturbing, but our confidentiality is extremely important to us. Therefore, you have been terminated because of this violation.
Any questions you may have about your separation or final pay can be referred to the HR department whose contact information is [HR Contact Information], and they will provide you with the needed information to handle these issues.
Sincerely, [Your Name] [Your Title]
11. Termination Letter Template Due to Misconduct
Subject: Termination of Employment – [Employee Name]
Dear [Employee Name], I am writing to inform you that your employment with [Company Name] is being terminated, effective immediately as of [date of Termination]. This decision follows a confirmed violation of our company policies regarding [specify the specific policy violated, e.g., harassment, theft, violence]. On [date], we learned that you were involved in [Briefly describe the misconduct without excessive detail]. This action is a serious breach of our policy on [policy name], which clearly states [quote a relevant excerpt from the policy, if applicable]. We take these matters very seriously, as they can negatively affect our work environment, employee safety, and the reputation of our company. Despite [mention any attempts to address the misconduct, e.g., an opportunity to explain the situation or a prior warning], we cannot overlook this behavior. Next Steps: Final Paycheck: [Explain how the final paycheck will be processed, including any deductions related to the misconduct. Consult with HR for specific details.] Company Property: Please return all company property, such as your laptop, phone, and badge, to the HR department immediately. We recognize that this news may be difficult to receive. However, ensuring a safe and professional workplace is our top priority, and this violation requires us to terminate your employment. If you have any questions about your separation or final pay, please feel free to reach out to the HR department at [HR Contact Information]. Sincerely, [Your Name] [Your Title]
12. Termination Letter Due to Completion of Contract
Subject: End of Employment Contract – [Employee Name]
Dear [Employee Name], I am writing to formally notify you that your employment contract with [Company Name] will end on [Date of Termination], as outlined in the agreement you signed on [Start Date of Contract]. We want to express our gratitude for your contributions during your time with us. You have consistently shown [Mention specific positive qualities or achievements, if applicable] throughout your tenure. Next Steps: Final Paycheck: Your final paycheck, which will include any accrued vacation or sick leave as per the contract, will be directly deposited into your account on [Date]. Company Property: Please ensure that all company property, including your laptop, phone, and badge, is returned to the HR department by [Date]. Benefits Continuation: [If applicable, provide details on any continuation options for benefits, including the end date of coverage and how to access COBRA options for health insurance.] We wish you the very best in your future endeavors. If you have any questions regarding your separation or benefits, please feel free to reach out to the HR department at [HR Contact Information]. Sincerely, [Your Name] [Your Title]
13. Termination Letter Due to Negligence
Subject: Termination of Employment – [Employee Name]
Dear [Employee Name], This letter is to formally inform you that your employment with [Company Name] is being terminated, effective [Date of Termination]. This decision has been made due to repeated instances of negligence that have led to [Mention specific consequences of the negligence, e.g., financial loss, safety hazards, damaged equipment]. Some specific examples of your negligence include: [List specific incidents of negligence, including dates and details. Focus on objective facts and the impact of the negligence.] These incidents have resulted in [Describe the negative impact of the negligence on the company, e.g., financial losses, safety concerns, workflow disruptions].
Next Steps:
Final Paycheck: Your final paycheck will be directly deposited into your account on [Date] (minus any outstanding deductions related to the negligence, as determined by the company).
Company Property: Please return all company property, including your laptop, phone, and badge, to the HR department by [Date].
We understand that this news may be disappointing. However, ensuring the safety and well-being of our employees and protecting company assets are paramount. Unfortunately, the repeated instances of negligence necessitate your termination.
Should you have any questions regarding your separation or final pay, please don’t hesitate to contact the HR department at [HR Contact Information].
Sincerely,
[Your Name]
[Your Title]
14. Termination Letter Template for Unauthorized Use of Company Equipment
Subject: Termination of Employment – [Employee Name]
Dear [Employee Name],
This letter formally informs you that your employment with [Company Name] is being terminated, effective immediately ([Date of Termination]). This decision is based on a confirmed violation of our company’s policy regarding the use of company equipment.
On [Date], it came to our attention that you engaged in the unauthorized use of company equipment. Specifically, you [Describe the specific incident of unauthorized use, e.g., downloaded personal software, used company computer for personal business, accessed unauthorized websites].Our company policy on equipment use clearly states [Quote the relevant section of the policy, if applicable]. This policy protects company data, maintains productivity, and ensures the security of our systems. The unauthorized use of company equipment can expose the company to security risks and compromise sensitive information.Despite [Mention any attempts to address the violation, e.g., an opportunity to explain the situation, a prior warning], we cannot condone this behavior.
Next Steps:
Final Paycheck: [Mention how the final paycheck will be handled. Consult with HR for specific details.]
Company Property: Please return all company property, including your laptop, phone, and badge, to the IT department immediately.
We understand that this news may be upsetting. However, maintaining the security and responsible use of company equipment is paramount. This violation necessitates your termination.
Should you have any questions regarding your separation or final pay, please don’t hesitate to contact the HR department at [HR Contact Information].
Sincerely,
[Your Name] [Your Title]
15. Termination Notice Template for Workplace Violence
Subject: Termination of Employment – [Employee Name]
Dear [Employee Name], This letter serves to formally notify you that your employment with [Company Name] is to be terminated, effective immediately, on [Date of Termination]. This decision has been reached following your confirmed violation of the Workplace Violence Policy of our company. On [Date], you committed [Explain what specifically transpired with regard to the workplace violence committed, e.g., a physical altercation, violent threats, or intimidation towards a colleague, customer, or manager]. Such an act is a serious offense and a clear breach of our company's Workplace Violence Policy, which states that [Quote the relevant section of the policy if applicable]. We take such violations very seriously, as they create a hostile work environment, affording an uncomfortable and dangerous working condition for our workers and others. Such behavior is utterly unacceptable and will not be tolerated under any circumstances. We have reported this occurrence to the proper authorities [Mention if authorities were involved, e.g., police], who may contact you to investigate this matter further. Next Steps: Final Paycheck: [Mention how the final paycheck will be handled. Consult with HR for specific details.] Company Property: You must return all company property, including the laptop, cell phone, and badge, to Human Resources without delay. This news may be very disturbing and disheartening. Yet, we must prioritize safety and security in our workplace. Because of this violation of our workplace violence policies, this suspension is advisable. If you have any questions about your termination or your final paycheck, feel free to contact the HR department at [HR Contact Information]. Sincerely, [Your Name] [Your Title]