The termination letter is valid and considered understood by Employer and Employee upon signature by both.
To [Insert name of the employee to be terminated],
This letter is to inform you that your employment with [Insert name of the company] has been terminated effective [immediately/date].
You have been terminated from your position with [Insert name of the company] for the following reason(s):
[List factual reasons for termination]
This decision is not reversible.
You will receive: [List compensation they will receive, including pay for unused leave, severance pay, salary owed, etc].
Your care benefits will [Explanation of what will happen with their benefits].
You are requested to return [list all company property to be returned].
Also, please keep in mind that you have signed [list any agreements the employee has signed, such as a confidentiality policy or a non-solicitation agreement and their consequences].
If you have questions about policies you have signed, your compensation, benefits, or returning company property, please contact [contact name, typically someone from HR, with contact info].
If you would like, you may participate in an exit interview. Please contact the person listed above to schedule a date and time for your exit interview.
A termination letter is a formal notice you use to inform an employee that their employment is ending. While you would typically use a termination letter when dismissing someone, there are other occasions when using this document may be necessary. While issuing a termination letter may not be required from a legislative or HR perspective, ensuring you have notified employees in writing ensures you have a permanent record of the decision taken and why.
The ideal termination letter is succinct and to the point. At the same time, there are many things you need to include in your termination letter, both to give the employee all the detail they need about their termination and also to cover your business in the event of any appeal or tribunal, depending on the reason for termination.
Your termination letters should always include:
Even if you have no legal obligation to do so, it is good practice to issue a termination letter whenever someone’s employment ends.
You should consider using a termination letter when employees leave your business under the following circumstances:
Using termination letters can:
Ideally, you will issue a termination letter following a recorded meeting with the employee to be terminated, so they don’t simply receive a letter out of the blue.
While each termination letter your business ever issues may include different specific details, depending on the reasons for termination, the framework of your letters should always be the same. Use Contractbook’s termination letter template to ensure your letters include all the detail you need, follow a consistent structure and format, and remove human error from the equation to ensure they do what you need them to.