Summary. A termination letter is not legally require but it is an important part of an employee file. A termination letter should include names of all people involved, employee data, and dates of employment and date of termination. The letter should also include the reason for termination.
Firing an employee can be very difficult. It’s not just an emotional endeavor that can create anxiety, but there are also some legal issues to consider. Adding to all of that is the fact that you’re going to need to craft a termination letter, which can be hard to do. That’s where we step in and help. The following tips will help you write a good termination letter, and we even include a few templates.
Key Takeaways:
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The types of termination letters can fall in three categories which are with cause, without cause, and end on contract.
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The termination letter should be professional no matter the relationship with the individual being fired.
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A termination letter is not legally required, but it’s a good to have incase of any legal issues in the future.
What to Include in a Termination Letter
Like most business letters, a termination letter needs to include certain information to avoid confusion. It’s all about dotting the I’s and crossing the T’s. This can be tedious, but it’s well defined, so you can start there and fill in the critical information. All termination letters should include the following:
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Names of all people involved, including business or company names
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Employee data, including job title, ID numbers, department, supervisors, etc.
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Dates of employment, dates of any determining incidents, and the date of the termination
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Reason for termination – do not go into great detail here. Your employee records are available should this go to court
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Information about final pay, benefits, severance, etc.
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List of company property that must be returned
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Nondisclosure or noncompete information
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Company or human resources contact information
Types of Termination Letters
There are basically three categories for termination letters, with cause, without cause, and end of contract.
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With Cause. A with cause termination means that the employer has found the employee’s performance or behavior to be unsatisfactory in some way and feels that they are no longer a good fit for the company. Basically, the company has a “reason” for firing someone, and they must carefully document incidents where this “reason” was demonstrated before firing them.
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Without Cause. When someone is fired without cause, it means they did nothing to deserve being fired. This is usually called a layoff, and it typically happens when a company downsizes or moves.
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End of Contract. Finally, there are end-of-contract terminations, which can take two forms. There can be a contract that has a predefined date of termination. These don’t always need a termination letter, but including one for clarity and to button up the deal is a good idea.
The other is an open-ended contract, which is very common in a gig situation. These contracts will require a termination letter to end the engagement.
Example Termination Letters
Below, you’ll find three basic termination letter templates, one for each of the types of termination letters. These are not complete termination letters; rather, they’re a sample to give you an idea of how to write your own.
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With Cause Termination Letter Template
May 10, 2022
Dear Frances Clare,
This letter is a confirmation of our discussion today regarding your last day of employment with Chipmunk Productions, effective today, May 10, 2022.
The reason for termination is your repeated failure to show up for work or to call in and provide notice that you were not going to be in the office. Your lack of attendance on scheduled days has caused several projects to be delayed and created a ripple effect throughout the entire production chain.
Payment for your last day of service and any accrued vacation will be made in the next payment cycle, which will be processed at the end of the month.
We acknowledge receipt of your ID badge and laptop computer as of today, May 10, 2022.
Please keep in mind that there is a signed non-disclosure agreement and any knowledge you have of our future projects and production bids is not to be discussed.
Please, feel free to reach out to our production coordinator, Charles Smith, or to me directly if you have any questions.
Sincerely,
Milo Parker
Owner at Chipmunk Productions
MParker@Chipmunk.com
(123) 456-7890 -
Without Cause Termination Letter Template
May 10, 2022
Dear Frances Clare,
We are writing to inform you that Chipmunk Productions has unfortunately decided to close our doors permanently. As you may know, we’ve suffered great losses during Covid and are no longer able to financially support this business.
We regret to inform you that we will be winding up business by the end of August and will no longer need your services as of August 3rd.
We ask that you turn in all of your hours up to and including August 3rd by Friday, August 5th , and paychecks will be sent the following Monday. In addition to your final paycheck, as discussed, there will be an additional $10,000 severance package, and your health insurance policy will continue for three months.
Over the dates of August 3rd through the 5th, we request that you check in any equipment you may have that belongs to Chipmunk Productions. There is no need to return keys or ID badges.
Please accept our deepest appreciation for the work that you have done over the last six years with our company. We have enjoyed working with you and hope to cross paths in the future.
Please, feel free to reach out to our production coordinator, Charles Smith, or to me directly if you have any questions.
Sincerely,
Milo Parker
Owner at Chipmunk Productions
MParker@Chipmunk.com
(123) 456-7890 -
End of Contract Termination Letter Template
May 10, 2022
Dear Frances Clare,
We are writing to inform you that we will no longer be in need of your services from August 3, 2022.
We have enjoyed working with you and are quite fond of the work you have done for Chipmunk Productions in the last two years. We are more than happy to provide a recommendation or referral for you in the future as we believe you do outstanding work.
Unfortunately, we’ve decided to shut down the tourism project that you were actively involved in and put our focus in another direction.
We ask that you turn in your hours and expense report by Friday, August 5th, and we will issue a check the following Monday. If you have any Chipmunk Productions equipment in your possession on August 3rd, please check it back in using our process by the end of the day, along with turning in your ID badge.
Again, we’re sorry to say goodbye at this time and appreciate all of the quality work you have done for us. Please, feel free to reach out to our production coordinator, Charles Smith, or to me directly if you have any questions.
Sincerely,
Milo Parker
Owner at Chipmunk Productions
MParker@Chipmunk.com
(123) 456-7890
The Voice of a Termination Letter
The voice of your termination letter should be strictly professional. Even if you’ve personally had a relationship or jovial past with the individual who is being fired, this is a business letter, and it needs to be succinct, clear, and to the point. There is always the chance that a lawsuit could ensue, and that letter may end up in court. You also want to be sure that there are no misunderstandings.
In marketing, considering the voice of all messaging is critical. A lot of work and research goes into what type of communication people respond best to. There’s also a voice that should be used in a termination letter, and luckily you don’t have to research it.
Legal Considerations
When it comes the time to write the termination letter, you’ve most likely already determined who you’ll be firing and why. Hopefully, you’re also apprised of all legal issues when firing a person and have taken the steps you need to document their shortcomings or the reason for the termination. This all needs to happen before the termination letter.
One last thing to consider from a legal standpoint before writing the termination letter is any company policies or contractual agreements you may have with the employee. There are many times in business when people have special employment contracts, especially in this gig economy, that might have predefined termination points and processes.
It’s key that you review these to make sure you’re approaching the termination in accordance with their contract and your company policies.
Do I Need a Termination Letter?
At this point, you might be wondering if you even need to write a termination letter, especially if your plan is to fire someone in person. The answer is that it’s not legally required, but it’s a good way to close the loop. There can be a lot of discussion on how a termination should occur, but the one thing that’s sure is that a termination letter is a valuable document.
Employment is typically a legal contract. Most often, there is some written document of this contract, even pay stubs can act as proof of a contract. To avoid any questions or legal issues in the future, there should be a termination letter in writing that is given to the individual, and this needs to be kept for the employer’s records.
Termination Letter FAQ
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How do you end a termination letter?
You end a termination letter in a professional manner. There is no need to add pleasantries or other information. In most cases, simply saying “Sincerely” and then using your signature and title is enough.
In some situations, like when it’s an end-of-contract termination or a without-cause termination, you might want to wish them well, especially if you hope to keep the relationship open for future work.
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Are you required to provide a termination letter?
No, you are not legally required to provide a termination letter in most situations. That said, they’re strongly advised as a way to detail the individual’s exit and to dictate the process that should occur.
Termination letters are an important part of an employee file. The main reason you want a letter is to avoid any confusion and to provide a reference point for both parties.
If you suspect there might be an issue with that employee or their termination, having the letter in your file and proof that they received the letter can be useful in court. If you suspect such a situation may arise, you might even want to connect with an attorney to make sure all of your bases are covered.
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Do I have to give notice with a termination?
No, you don’t have to give notice with termination in most situations. The exceptions are with some unions and certain employment contracts. That’s not saying that you can’t give notice, especially if the situation is one that’s not the employees’ fault and you want to give them time to prepare.
Each termination is different, so there are times when you’ll want to give notice. There are going to be times when you’re supposed to give notice but cannot due to the safety of others. This needs to be reviewed on a case-by-case basis.
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What is at-will termination?
At will termination is when an employer can terminate an employee at any time, for any reason, except an illegal one, for no reason without incurring legal liability. It’s a very common situation where an employer can fire someone for any (or no) reason at any time.
Most people are employed with an at-will status, meaning they choose to be employed and can quit or be fired at any time. This is typical in the United States and allows businesses and individuals to pursue careers and employees that they see as the best fit.
It should be noted that you cannot fire someone due to some form of discrimination. This is not an at-will termination, and if your employee can show that your company fired them due to their race, gender, or physical handicap, then they have a legitimate lawsuit against you.
References
Author
Kristin Kizer
Kristin Kizer is an award-winning writer, television and documentary producer, and content specialist who has worked on a wide variety of written, broadcast, and electronic publications. A former writer/producer for The Discovery Channel, she is now a freelance writer and delighted to be sharing her talents and time with the wonderful Zippia audience.
