Termination Letter: A termination letter is a letter that notifies an employee that they have been fired. The letter states their last working day, the compensation they will receive, and list of steps to be taken and more. A termination letter may or may not state the reason for the termination of the employee. Furthermore, if the organization is planning to lay off employees during poor economic times, they may be advised to have their lay-off plans reviewed by a lawyer to avoid lawsuits or other legal issues.
A termination letter has many elements that need to be addressed in detail. If any of these details are absent, it may result in miscommunication between the employee and the organization. Hence, do ensure that the following details are present:
- Effective termination date
- Factual reasons for termination (if required)
- Compensation for the termination, including unused leave, salary owed, severance pay etc)
- The details of their health care plan (what will happen to their benefits)
- List of company property to be returned
- Attach a copy of non-disclosure agreements/ non-solicitation agreements
- HR contact name, email ID and phone number
Termination Letter Samples
Following is a list of sample termination letters. While drafting your own, do ensure that the above following information is incorporated and the format present below is followed. As stated previously, termination letters will fall under two major categories
- Without cause
- With cause.
Formats for both the categories are furnished below
Termination Letter Without Cause
Termination Letter to Employee
Termination Letter With Cause
Letter of Termination of Contract
FAQs on Termination Letter
Question 1.
What is a termination letter?
Answer:
A termination letter is a letter that notifies an employee that they have been fired.
Question 2.
How do I write a termination letter to an employee?
Answer:
Address the reason (if required). Explain the status of the compensation package, medical benefits and other relevant details. Describe a course or a plan of action. Also, include a phone number or email to address any queries from the terminated employee.
Question 3.
How do I inform an employee about termination?
Answer:
Discuss the termination with the employee and also have written documentation stating the same.
Question 4.
What are the important details to address in the termination letter?
Answer:
Ensure that the following details are present –
The termination date, factual reasons for termination (if required, the compensation for the termination, the details of their health care plan, the list of company property to be returned. Lastly, attach a copy of non-disclosure agreements as well as contact details of the HR.
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