Highlights
- What is a termination letter?
- How to write a termination letter?
- Why is a termination letter important?
- Types of termination letters
- Employee Termination Letter Samples
- FAQs
Termination of employment, though unpleasant, is still a part of an employer’s responsibility. And, every employer has to terminate an employee without inviting any legal ramifications. After all, termination is part and parcel of professional life.
Nevertheless, the employer can create a difference by changing the way they approach the act of termination. This starts with the employee termination letter. Companies should focus on drafting a termination letter that acknowledges the employee’s contribution, is considerate about their situation, and still conveys the message of the company.
With that said, let us check the top ten employee termination letter samples that can be used by companies.
What is a termination letter?
The termination letter is given from an employer to an employee. It is often used as an official statement to the worker, and as an authorized record of their termination. This document is also known as the notice of termination, disqualification letter or termination statement.
How to write a termination letter?
- Let the employee know the date of their termination.
- State the accurate and detailed reason(s) for his/her termination.
- Mention compensation and/or benefits, if any.
- Notify that they must immediately return all company property.
- Take them through important and applicable clauses or terms in their signed agreements.
- Include the company’s HR contact details, if they or their future employer need to get in touch.
Why is a termination letter important?
As unfortunate as it is, the reasons for drafting the termination letter are significant.
- The termination letter states the employer’s justification for terminating the employee, in detail, if necessary. If the individual has a termination letter outlining the grounds for the firing, the company will find it more difficult to subsequently modify its narrative.
- The date of termination is specified in a termination letter. It is critical since there are several deadlines for filing complaints against an employer in case of wrongful termination. Employers frequently suggest that employees have failed to meet a deadline and are, thus, barred from pursuing claims.
- The termination letter debunks claims that the worker resigned. Some companies may argue that they did not fire an employee and that it was the employee who freely departed or abandoned their employment. It is commonly done for strategic purposes to avoid culpability. Nevertheless, if the employee receives a termination letter, the employer cannot claim that the person was never let go.
- Finally, although there is no official obligation to produce or submit a termination letter, a specific and comprehensive termination letter may help avoid situations in which a previous employee claims they were fired without reason or awareness.
Types of termination letters:
There are 4 kinds of termination and letters:
- Voluntary Termination
- Involuntary Termination
- Employment at Will
- Termination of Mutual Interest
Employee Termination Letter Samples
1. Employee termination letter for probationary employee
Employers normally hire employees and keep them on probation for the initial few months before confirming their employment. This probation period generally lasts for 90 days or three months. It, however, depends on company to company. If the performance and professional conduct of the employee are not satisfactory and fall below the company expectations, then they are given an employee termination letter to relieve them from employment with the company.
(Name of Manager)
(Title)
(Phone Number)
(Email)
(Date)
(Recipient Name)
(Title)
(Company Name)
Dear ABC (Recipient Name),
We acknowledge and recognise the effort that you’ve put into your job role as (add job title) during your probationary period with (add firm name).
Regrettably, the results did not meet business expectations. We write this letter to inform you that your employment with (firm name) stands terminated effective today (or add date).
We will be processing your outstanding salary and your Record of Employment on the next scheduled payment date (add date). These documents would be mailed to your home address.
We wish you the best in your future endeavours.
Sincerely,
(Name of Manager)
(Title)
(Phone Number)
(Email)
(Date)
2. Immediate termination letter to employee
This is the basic employee termination letter format for employee. It can also be used as an immediate termination letter to employee. This letter includes the primary content which informs the employee of their termination. And has space below to add further explanations.
(Company Name)
(Street Address)
(City, State Pin Code)
Dear ABC,
With regret, we inform you that your employment with (add firm name) is being discontinued, effective (add date). Your termination is the consequence of:
Explanation 1 (add an explanation if any)
Explanation 2 (add an explanation if any)
Kindly return any company property that is in your possession. A delay or failure in doing so would cause a delay in the issuance of your final paycheck.
Any severance payments will be made according to the policies of the organisation (add company name).
If you are entitled to any remaining paid leaves, they will get calculated and paid under the company (add company name) policies. If you have any questions or concerns, you can contact the HR department.
Sincerely,
(Name)
(Title)
(Signature)
3. Employee termination letter for poor performance
After the successful hire of an employee, non-performance can prove to be costly for the organisation. The company can try to train the employee and develop their skills to be par with the organisational requirements. However, if the employee still fails to perform, you can use this sample termination letter to employee.
Dear ABC,
We regret to inform you that your employment as (add job title) with (add firm name) has been officially terminated with effect (add date).
The decision of the company to terminate your employment is based on your consistent poor performance in the past three months, which has not shown any signs of improvement or failed to meet company expectations following your receipt of our oral and written warnings.
You were already made aware by the company that the last date of the notice period issued with the final written warning would be our last day of employment with the company if your performance fails to meet the minimum performance standards set by the company.
Your severance payments, including all unused paid leaves, will be mailed to you at your residential address. If you have any questions or queries, you can contact the HR department.
Thank you, and we wish you all the best in your future endeavours.
Sincerely,
(Name)
(Title)
(Signature)
4. Employee termination letter sample for restaurant employee
A restaurant business is a very customer-sensitive business which is more dependent on customer experiences when inside the restaurant. Therefore, the restaurant management pays great attention to the customer experience right from the second they enter the premises to the moment they walk out. However, if your employee shows inappropriate conduct in front of the customer or is involved in unethical practices at work, then you can use this letter for job termination template for your restaurant employees.
Dear ABC,
We regret to inform you that your employment shall end on (add date). The mentioned date will be your last day of work with (add firm name). The aforementioned data is as per the notice period for employment termination as specified in your contract. The reason for termination of employment is improper conduct or behaviour with the customer. The details are mentioned in the attached documents.
Please return all company equipment, material or documents that are in your possession. Please observe confidentiality as per our data protection policy as agreed upon at the start of your employment.
You are entitled to a severance package which you will get on your last day of service. Failure or delay in returning company property which is in your possession will cause a delay in your final paycheck.
If you have any questions or doubts, you can contact the HR department.
Thank you for your service. We wish you great success in your future endeavours.
Sincerely,
(Name)
(Title)
(Signature)
5. Sample termination letter of employee benefits
This termination letter is to inform the employee about the termination of their employee benefits. The letter mentions the appropriate reasons for benefits termination and the effective date.
From,
(Company Name)
(Street Address)
(City, State Pin Code)
To,
(Employee details)
(Date)
According to our records, you have been inactive in conducting research-based activities with the organisation for the given financial year (add date). Therefore, you will not be eligible to receive research allowance or grants from the company. Further, any additional benefits associated with the aforementioned allowance will get discounted from (add date). Other privileges and benefits that will continue are outlined in the attached document summary.
Last Date of benefits eligible status ___________________
Date of cancellation of eligible benefits _______________
Sincerely,
(Name)
(Title)
(Signature)
6. Employee termination letter sample
Here is another sample employee termination for employees whom you had hired expecting good performance, but their performance has turned out to be below your expectations.
Dear ABC,
We regret to inform you that your employment with (add company name) shall officially get terminated on (add date). The reason for termination of employment and the details of your severance benefit and compensation are mentioned in the attached document. The decision is final and irrevocable.
Please return all the company property that you may have in your possession before the final date. If you have any question or concern, you can contact the HR department.
We wish you success in your future endeavours.
Sincerely,
(Name)
(Title)
(Signature)
7. Sample employee termination letter due to prolonged absence
Few employees go on an unexplained leave of absence for prolonged periods, wherein they are uncontactable, or there are no signs of them returning to the organisation. This is highly unacceptable behaviour as per any company rule. Here is a termination letter to send out to such employees.
Dear ABC,
Subject: Termination of Employment
It is our unfortunate duty to inform you that your employment with (add company name) stands terminated from (add date).
The reason for termination is the multiple unexplained and uninformed leave of absence from work for prolonged periods that you have taken.
You will receive your entitled severance package as per company policy. You will receive a statement detailing your accrued benefits.
(Name of HR executive) will discuss the final details with you as well as answer your question or doubts, if any. Kindly get in touch with him/her at the earliest to discuss your termination process and final package.
This action by us was deemed necessary. We wish you success in your future endeavours.
Yours truly,
(Name)
(Title)
(Signature)
8. Sales employee termination letter sample
Let us check out this customisable employee termination letter for sales employees, owing to poor performance among other reasons.
To,
ABC,
(Job title)
(Company name)
(Address)
(Pin code)
(Date)
Subject: Termination letter for employment
Dear ABC,
We are writing this letter to inform you that your employment in the job position of (add title) with (add company name) has been terminated. We request you to initiate your termination process and vacate your desk post the lapse of your notice period.
For more than three months, your sales performance has been below company expectations. This issue was already discussed with you by the management. The management also provided you with the required training and development to enhance your skills. Despite all the support provided by the company, your performance failed to achieve the expected objective.
Further, we have received complaints from your team members and colleagues about your bad behaviour and improper conduct at work. Despite the repeated warning, you have failed to show any improvement in your behaviour. Therefore, management has decided to terminate your employment.
Your employment contract empowers the employer to terminate your employment after six months of employment on the grounds of misbehaviour or misconduct. Therefore, the decision is legally right, final and irrevocable.
If you have any questions or doubts, feel free to contact the HR department.
Thank you for your service. We wish you success in your future endeavours.
Sincerely,
(Name)
(Title)
(Signature)
9. Employee termination letter sample due to redundancy
The below employee termination letter sample can be used for an employee whose services are deemed redundant.
Private and Confidential
(Date)
(Employee name)
(Employee address)
Subject: Termination of employment because of redundancy
Dear ABC,
Our purpose of writing this letter is to confirm the result of a recent review by (add company name) on its operational necessities, and what this outcome means to you.
As a result of (provide the reason. For example — downturn, closure of the store, etc.), the company feels that the job position of (add job title) is no longer required. Unfortunately, this means that your job will get terminated. This decision doesn’t reflect your performance and primarily from the business perspective. Further, we’d be happy to write you a letter of recommendation.
(The next section should provide the available options for the employee. You can customise the sentences as per the options you provide to employees.)
Based on your (months/years) of service, your notice period will be (add duration). Therefore, your employment with (add company name) would end on (add the date).
As your employment ends due to redundancy, you will be paid a redundancy pay (add amount) according to your contract. The amount represents your (add duration) pay based on your years of service. You will be entitled to outstanding pay if any and accrued entitlements and severance pay till the last day of employment.
You can contact the HR department for any queries or concerns.
Thank you for your valuable contribution during your period of employment with (add company name).
We wish you success in your future endeavours.
Sincerely,
(Name)
(Title)
(Signature)
10. Basic termination notice sample letter
Let us check out the basic notification letter for termination of employment as a way of layoff.
Dear ABC,
With regret, we have to inform you that you are being laid off from the job position of (add job title) effective from (add date) due to lack of funds and/or lack of work which has necessitated this layoff. The duration of layoff is indefinite and must be considered as permanent.
We assure you that your termination is not a reflection of your performance. We highly appreciate your contribution to this organisation. Further, we’d be happy to write you a letter of recommendation.
We sincerely regret your current problems that have necessitated this layoff. We wish you the best of success in your future endeavours.
Sincerely,
(Name)
(Title)
(Signature)
These employee termination letter samples will help you carve out a pleasant termination letter for your employees. After all, the goal should be to make this separation seamless, smooth and pleasant for the employee as well as the employer.
11. Employee Termination Letter for Business Needs
When a company has to let go of employees due to factors like downsizing, restructuring, or economic difficulties, it is called “Terminating an Employee for Business Needs”. It is important for employers to follow established procedures, such as giving proper notice and compensation as per legal requirements.
(Date)
(Employee’s Name and Address)
(City, State, ZIP Code)
Dear (Employee’s Name),
I regret to inform you that our company has been forced to downsize due to current economic conditions. This means that, effective (Date), your employment with our company will be terminated.
We understand that this news is tough and we want to emphasize that this decision is not a reflection of your work performance. We will be making sure that you receive all the benefits and compensation that you are eligible for according to the law.
If you have any questions, please do not hesitate to contact our HR department. We wish you the best in your future endeavors.
Sincerely,
(Your Name)
(Designation)
(Company Name)
(Company Address)
12. Employee Termination Letter to Employee Without Reason
the concept of terminating an employee without cause. It refers to the situation where an employer ends the employment of an employee without any specific reason or justification, and the termination is not related to poor performance, misconduct or any other reasons.
This type of termination is considered unfair and unethical because the employee is being terminated without a valid reason and without the opportunity to address any issues or improve.
Additionally, employees who are terminated without cause are often eligible for compensation and benefits, which can be a financial burden for the employer.
(Date)
(Employee Name and Address)
(City, State, ZIP Code)
Dear (Employee Name),
I am writing to formally announce that our organization has reached a decision to terminate your employment without cause, effective immediately.
We understand that this news may come as a shock and we extend our apologies for any inconvenience this may bring. Please be aware that, as per the laws, you are eligible to receive all the necessary compensation and benefits.
In case you have any inquiries or concerns, our Human Resource team is available to assist you. We wish you the very best in all your future endeavors.
Sincerely,
(Your Name)
(Company Name)
(Company Address)
13. Employee Termination Letter to Employee for The Infringement of Company Rules
Terminating an employee for infringing company rules refers to the act of dismissing an employee from their job because they have violated the established policies, procedures, and regulations within a company.
This type of termination occurs when an employee engages in behavior that is deemed unacceptable or disruptive to the workplace. This can include violations such as theft, harassment, substance abuse, and insubordination.
The reason behind this type of termination is to ensure that the company’s workplace remains productive, safe, and compliant with all laws and regulations. The process usually involves an investigation to gather evidence of the violation and a review of the employee’s file to see if there have been previous incidents of misconduct.
Sample Termination Letter for Infringing Company Rules:
(Date)
(Employee Name and Address)
(City, State, ZIP Code)
Dear (Employee Name),
I am writing to inform you that your employment with [Company Name] is being terminated, effective immediately. This decision is based on your violation of [Company Name]’s policies and procedures, as outlined in our employee handbook.
Specifically, we have evidence of [outline the violation]. This type of behavior is unacceptable and goes against our commitment to maintain a safe and productive workplace.
We understand that this news may come as a shock to you, but we believe that it is in the best interest of our company and our employees to enforce our policies consistently. Please be assured that you will receive all the benefits and compensation that you are entitled to, as per the law.
If you have any questions or concerns, please do not hesitate to reach out to our HR department.
Sincerely,
(Your Name)
(Company Name)
(Company Address)
14. Employee Termination Letter to Employee (Mutual Termination)
Terminating an employee on mutual grounds refers to a scenario where both the employee and the employer agree to end the employment relationship due to personal reasons of the employee. This can include seeking better career opportunities, relocating, personal health concerns, or other reasons not related to job performance.
The reason behind this type of termination is to provide a hassle-free exit process for the employee and to maintain a positive relationship between the employee and the company. The process involves a mutual agreement between the employee and the employer, including the terms and conditions of the termination, such as the notice period, severance pay, and other benefits.
Dear [Employee Name],
I hope this letter finds you in good health and spirits. I am writing to inform you that your employment with [Company Name] will be ending on [Termination Date]. This decision is based on the mutual agreement between you and the company, where you have chosen to leave due to personal reasons.
We appreciate the time and effort you have dedicated to [Company Name], and we understand that you have made this decision for personal reasons. We wish you all the best in your future endeavors and are confident that you will be successful in your next chapter.
Please be assured that all the benefits and compensation you are entitled to will be processed as per our agreement and in compliance with the law. If you have any questions or concerns, our HR department will be more than happy to assist you.
Sincerely,
[Your Name]
[Company Name]
[Company Address]
6 Important Legalities To Comply With for Terminating Employees in India
When it comes to ending an employment in India, there are specific rules and regulations that need to be followed. HRs and businesses must be aware of these to ensure a fair and compliant process. Here are some key points to keep in mind:
Notice Period: The Indian Contract Act requires employers to give notice to employees either a month or two months in advance, based on the terms agreed upon in the employment contract. If no notice period is specified, the employer must give a reasonable amount of time to the employee.
Payment of Wages: The Payment of Wages Act requires employers to pay all wages earned during the notice period, even if the employee doesn’t work during that time.
Reasons for Termination: Employers must have a valid reason for termination, such as poor performance, misconduct, or redundancy. They must provide a valid explanation, follow due process, and give the employee a chance to respond.
Termination Without Cause: If an employee is terminated without a valid reason, they are entitled to compensation equal to the notice period.
Retrenchment: The Industrial Disputes Act only allows for retrenchment of employees in cases of a bona fide business closure or significant workforce reduction due to technology or economic reasons. Proper procedures, including giving notice to government authorities and compensating affected employees, must be followed.
Unfair Dismissal: Employees can file a complaint for unfair dismissal if they believe the termination was unjust or discriminatory. This complaint must be made within 6 months and the employer must prove their case.
It’s important for HRs and businesses to understand and comply with these legal rules to avoid any legal issues and protect their company’s reputation.
What To Include And Not Include In A Termination Letter
A termination letter should be clear, concise, and professional. Here are some points to consider when drafting a termination letter:
Include:
- Reason for termination: Clearly state the reason for termination, whether it is for poor performance, misconduct, or another reason.
- Effective date: Indicate the effective date of termination.
- Company policies: Refer to any company policies or employment agreements that apply to the termination.
- Final paycheck: Provide information about the employee’s final paycheck, including when it will be issued and what it will include.
- Benefits information: Include information about the employee’s eligibility for benefits or severance packages.
- Return of company property: Request the return of any company property, such as keys, laptops, or equipment, and provide instructions.
- Contact information: Provide contact information for the employee to ask questions or address any concerns.
- Signatures: Include signatures from the employer and employee, if possible.
Do not include:
- Emotional language: Avoid using emotional or inflammatory language that could be seen as unprofessional or disrespectful.
- Criticism or insults: Do not criticize or insult the employee in the letter.
- Promises or guarantees: Avoid making promises or guarantees that cannot be fulfilled, such as promises of rehire.
- Personal information: Do not include personal information irrelevant to the termination.
- Legal threats: Avoid making legal threats or using language that could lead to legal action.
When are termination letters used?
Termination letters are official documents that are used to inform an employee that their employment has been terminated. These letters are usually issued by an employer or a human resources representative and serve as evidence of the employee’s termination.
There are various situations in which termination letters may be used.
Misconduct: One of the most common situations is when an employee is terminated for cause. This means that the employee has engaged in behavior that is considered to be a violation of company policy, such as theft, harassment, or insubordination. In such cases, a termination letter informs the employee that their employment has been terminated due to their actions.
Performance issues: Another situation in which termination letters may be used is when an employee is terminated due to poor performance. In such cases, the letter would typically outline the reasons why the employee’s performance was considered to be inadequate and would inform the employee that their employment has been terminated as a result.
Downsizing: Termination letters may also be used when an employee is being laid off due to a reduction in the workforce. In such cases, the letter would explain the reason for the layoff and provide details regarding any severance pay or benefits that the employee may be entitled to.
Contract Termination: Employers may also use termination letters when an employee resigns or when their employment contract expires. In these situations, the letter would typically acknowledge the employee’s decision to leave and provide details regarding any final payments or benefits that the employee may be entitled to.
It’s important to note that termination letters should always be written professionally and respectfully. Even if an employee is being terminated for cause, the letter should avoid using inflammatory language or making personal attacks. The tone of the letter should be neutral and should focus on the facts surrounding the termination.
Additionally, employers should be aware of any legal requirements that may apply when issuing termination letters. For example, in some jurisdictions, employers may be required to provide a written explanation for the termination or to provide the employee with a certain amount of notice before terminating their employment. Failure to comply with these requirements could result in legal action being taken against the employer.
In conclusion, termination letters are an important tool for employers when terminating an employee’s employment. They serve as evidence of the termination and provide important details regarding the reason for the termination and any benefits or payments that the employee may be entitled to. Employers should always ensure that their termination letters are written professionally and that they comply with any legal requirements that may apply.
FAQ’s
1. When should you not use a termination of employment letter?
It is difficult to imagine that situation. While it may be appropriate to cite a reason for termination in an employee’s individual termination letter, if the company’s letter of termination or separation agreement leaves off the reason, it is best not to supply that information in a separate email to the employee.
2. Will my organisation require an employee termination form?
Typically, large companies that terminate employees will require an employee’s signature on a termination form. A typical notice includes the employee’s name, department, position, and date of termination.
3. What are the circumstances under which an employer can dismiss an employee?
- Redundancy and misconduct.
- Issues with capability or performance.
- Violating statutory restrictions.
- Other substantiated reasons, such as a fixed-term contract expiring, serious personality clashes that affect the business or an irreconcilable conflict of interest.
4. Must I give a reason for terminating the employment contract?
While there is no law that requires employers to give reasons for terminating employees, it is wise to document any reasons and supporting evidence when terminating someone because doing so can help protect your company from lawsuits.
5. Is the human resources department present when an employee is fired?
It is usually unnecessary for human-resources personnel to be present at a dismissal. But if you have a human resources department, it will probably take advantage of its experience in the field. If you do not have a human resources team, call BetterPlace. We can help you follow the best practices for a successful dismissal.
6. Can an employer terminate an employee without giving prior notice?
An employee can be terminated without notice if they engage in serious misconduct, which includes activities such as wilful and deliberate misconduct that is considered contrary to the employment agreement or illegal or dangerous activity that threatens the health and safety of others or damages a company’s reputation.
7. It is against company policies and procedures to terminate an employee over the phone?
Unless there is a medical emergency or an employee’s actions pose a threat to other employees, you should not terminate an employee by phone. If, however, there is an urgent need to discuss termination or if the situation necessitates it, then you can either revoke an offer of employment or give an employee notice of termination if the two of you are in the same location.
If the situation does not allow for an in-person meeting, then you should discuss termination by phone only if you have already confirmed that the employee understands they may be terminated over the phone and has waived his or her right to have the conversation face-to-face. Additionally, you should err on the side of caution and seek professional advice before deciding to terminate by phone.
8. Is early termination of an employment contract possible in some circumstances?
In some countries, employment contracts are generally open-ended and do not expire until the employee or employer wants them to. In these cases, it is always possible for an employer and employee to mutually agree to end the contract before its intended expiration date, though it is not necessary that they do so if both sides are satisfied with the arrangement.
An employer must still give a valid reason why they wish to end the contract early and must ensure that they engage in a fair process with their employee.
