How to Write a Termination Letter

By Savithri Subramanian
write a termination letter

Terminating an employee is stressful to the manager; writing to the employee is taxing to the HR and traumatic to the employee himself.

Generally, employment contracts are drawn with the process for terminating employment which eases the process of termination when it is by mutual agreement or when the employment is contracted for a fixed period. Here the acceptance is easy since the employee is aware that his services are terminated at the conclusion of such a contract unless a new contract is offered or the clauses in the initial contract are amended.

Employers can be exposed to a number of legal and reputational risks if they do not follow due process while hiring and terminating employees. Consequently, businesses need to formulate contracts at the time of on boarding and human resource (HR) materials keeping in mind the regulatory, social, and cultural idiosyncrasies that are framed in the country’s labour laws and court decisions. This will ensure that senior management, HR personnel, and employees are fully apprised of their rights and responsibilities, thereby minimizing the scope for disputes.

Every off boarding activity should be documented with a written record. The termination letter is the record with which the organization ends its business relationship with the employee.   Even a single toxic employee can damage your business productivity affecting the overall office environment and the morale of your other employees.  After a few verbal and written warnings, the manager takes a decision to terminate the employee and requests the HR to expedite the process. PulseHRMS recommends that all the warnings – written & verbal warnings could be well documented, wherein PulseHRM does offer a downloadable form in the recommended format with minute details to be noted in the warning phases and the final termination letter could be sent via the employee’s portal so that the process is silent, remains in the record and only concerned people are aware of the process.

Every HR should create a few templates so that not much time is wasted in mulling over what is to be written. What should be included in a termination letter?

  • The date the termination is effective from.
  • The reason(s) for termination.
  • An explanation of their compensation (if any) and what will happen to their benefits.
  • A list of company property to be returned (if any).
  • A reminder of the legal agreements including non-disclosure, non-compete, etc. the employee has signed (if applicable).
  • The contact details of an HR representative.

Sample Termination Letter

Company Name

Address

Employee Name

Address

[Date]

[Employee Name],

This letter is to inform you that your employment with [company name] will end as of [date].

You have been terminated for the following reason(s):

[List factual reasons for termination such as process shutdown, position eliminated poor performance, etc].

This decision is not reversible.

You will receive your final pay check for this month and payment for remaining leave in your full and final settlement process. Your health care benefits will remain in effect until “date/ duration” (if company decides to) or will be discontinued effective immediately (whichever applicable)

You are requested to return all company assets like Laptop, access card, locker keys, mobile phone & any other assets assigned at the time of joining, before you leave the office premises

Also, keep in mind that you have signed a confidentiality agreement. Please review the attached copy.

If you have questions about compensation, benefits, company property or policies you have signed, please contact your HR Manager (Name, number and email).

Yours,

Name of the person issuing the letter

PulseHRM has ready termination letters for different incidences such as with & without a cause, attendance issues or performance issues and you can just use it!! Reach out to have a free demo here. Switch now by clicking here.

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