45+ Sample Termination Letter to Employee

A termination letter is used to notify the receiver that their contract or agreement is terminating. Terminating a letter template is used when you make a decision to fire an employee from your company or organization for the betterment of the business. Terminating an employee is a crucial task; if you are unsure about it, you can see samples of termination letters and employee templates to write them better.

A termination letter is also called a letter of contract termination, letter of separation, letter of employee termination, and letter of termination. A well-structured letter helps you prevent any disputes. Browse our collection to find termination letter samples and templates that contain all the essential elements that allow you to handle this task properly. See below to understand more about it. 

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Download Free Termination Letter to Employee Templates

What is a termination letter?

A notice of termination is used to inform the notice receiver about the termination of the contract. When an employer wants to fire an employee with a cause or without cause, he/she sends a letter to notify him about job termination. It contains the information about the benefits he/she receives after the dismissal, the date of the termination, and the steps the letter receiver takes after receiving this. It’s better if the employer arranges a meeting with the employee and tells him about the termination process; this step of the employer makes this process easier. Before writing the termination letter, whether for employees, lease termination, service termination, or any contract cancellation, consult your lawyer to get some legal advice that helps you prevent any legal issues.

For the development of the business, the performance of each employee matters; if an employee gives poor performance or is always late, it directly affects the company’s development. The termination letter should include the reason for terminating an employee, but it is totally up to you. If you decide to mention the terminating reason in the notice of job termination, you should collect solid evidence from the employee profile supporting your cause. If you are unsure about the termination letter and don’t know how it looks, you should download a sample of an employee or contract termination letter that helps guide you. Now, it is easy to create it by downloading a free letter of termination template and making it with the help of samples.

Things to include in the Termination Letter

The termination letter should be written appropriately and contain all the essential things that make this process easier. If an element or some elements are not included properly by the sender, it creates disputes and misunderstandings between the sender and receiver. Below we share some essential elements that should be included in every termination letter. You can understand this letter and its elements with samples; in our collection, you can easily find the termination letter of the vendor, lease, job, service, and other types of samples and templates you want to create. Some necessary components of an employee termination letter are as follows:

1. Sender’s name, address, email address, and phone number. 
2. Receiver’s name and address. 
3. The date when the contract will end. 
4. Write about the benefits or compensation he/she received.
5. Notify the receiver to return what he/she received during this contract. 
6. Remind the letter receiver to sign this letter. 
7. The reason for terminating this contract should be included if you want. 

The above things are essential and must be included in every separation letter, but according to your needs, you can add additional information to it by consulting a legal advisor.

How do you write the Termination Letter?

Writing a termination letter from scratch is not easy; an example of a termination letter helps you design it properly. You should make sure to follow the standard format and see the templates to create it in an appropriate way that reduces the risk of disputes and misunderstandings. Before writing the termination letter, collect all the essential information of the sender. Below we share some steps to write the termination letter:

1. First, write the date you send this letter on the left side of the paper.
2. Add the receiver’s name, address, and other information under the date. 
3. Add the information of the sender. 
4. Add the salutation; it may be formal or informal. Write the receiver’s name followed by “Dear,” “Mr.” and something else you consider best. 
5. In the letter’s first paragraph, state the purpose of writing this letter regarding the agreement or contract they have signed. 
6. After writing the purpose, write the date of the contract. 
7. In the second last paragraph, state the benefits and compensation he/she received with the guidelines for the receiver to move forward and send him a copy of the record or document for review. 
8. In the last paragraph, use some positive words and remind him to sign the terminating contract document. 
9. To make this letter valid, sign it to the sender. 

Make sure the letter should be error-free and write it clearly and concisely. If you want to establish a great relationship after the termination of the contract, then keep positive in your words or tone and write a soft termination letter because the letter’s tone directly affects the reader.

Types of termination letter

There are different types of termination which are used for various purposes. Some basic types of termination letters are as follows: 

1. Voluntary termination letter: It is the main type of termination letter where employees send a letter of resignation to inform the employer that they are leaving the job. It may be the two-week notice letter according to the company policy where an employee works for two weeks as an employee in the same position after sending the resignation letter. When an employer accepts the resignation from an employee and sends the letter, an employer sends a letter of employment termination when he/she accepts the resignation, it is called a voluntary termination letter. 
2. Involuntary termination letter: An involuntary termination letter is sent by the employer to the employee to notify him that he/she has been fired from this company; it may be with or without cause. It is up to the employer to mention the reason for terminating the employee from the job. 
3. Termination of tenancy letter: The tenant uses A tenancy termination letter to notify the landlord that they will leave their property before ending this agreement for some reason. This letter contains information about the property they owned, information about the tenants, and the date when the tenants plan to hand over the property to the owner. Make your work easier by downloading the tenancy termination letter samples and templates to help you write it correctly. 
4. Service termination letter: A service termination letter notifies the sender that they no longer want to take the service or provide the service to the letter receiver. This type of termination is widely used in the corporate sector. 

Employee termination procedure

Employee termination is an awkward step, sometimes creating disputes and problems for the employer and the company. Before sending a termination letter, you should take some steps to prevent any legal issues. Below, we share a few steps to consider when terminating an employee. 

Step 1: Send a warning letter: Before sending a termination letter directly, it is vital to send a warning notice letter to the employee and give him a second chance to prove himself.

Step 2: Consult your lawyer: It is essential to take advice from your lawyer before sending a termination letter to the employee to avoid and handle any disputes. 

Step 3: Complete your paperwork: Read the contract you and your employee have signed, and collect evidence that supports your right to fire any employee from the company.

Step 4: Arrange a termination meeting: It is unfair to send a termination letter directly without arranging a meeting with the employee you will fire to inform him/her verbally about his/her termination.

Step 5: Send termination letter: After informing the employee verbally, now is the time to send a notice professionally about the termination.

Step 6: Final payback: Sends final payback to the terminated employee as soon as possible. 

Step 7: Update employee records: When the terminated process is completed, update the terminated employee profile for future use.

Reasons to write an employee termination letter

When an employer writes a termination letter with cause to the employee, it seems complicated when you are unsure about the format of it. There are various reasons for terminating a worker from a job. Some ideas are as follows:

1. Termination letter for poor performance: The company or organization’s development depends on employees’ performance. When an employee performs poorly and doesn’t correctly accomplish the task and responsibility, termination is the only solution for the company’s betterment. Take the idea of writing it from samples of termination letters for poor performance available in one click. Employees are valuable company assets, and when they work hard for the company’s development, the employer should appreciate them with a recognition letter. 
2. Termination letter for misconduct: Another solid reason for terminating an employee is his/her behavior with the office staff. If an employee behaves improperly, the employer sends an employee termination letter for misconduct. See the samples of this letter to write it appropriately. 
3. Termination letter for redundancy: This type of termination letter is written by the employers to the employee when hired by someone who does the same job as the terminated employee. We make your work easier by sharing examples or samples of employee letters of termination for redundancy that guide you in writing them according to the standard format and also sharing the templates to write them. 
4. Letter of termination for stealing: An employee’s letter of termination for stealing is used when an employee takes something without permission from the office with the intent of not returning it.

Tips for writing the termination letter 

Some tips will help you to write this letter effectively. 

1. It should be free from the spell and grammatical errors. 
2. Consult with your legal team before sending the termination letter for legal advice to avoid any issue arising from terminating the employee.
3. Be specific and concise in your words, and the letter’s tone should be professional. 
4. Use positive words like “Best of luck” at the end of the letter. 
5. Attach a copy of the evidence that supports your reason for termination.
6.  Remind the letter receiver to sign the termination documents. 
7. Explain the steps to take after receiving this letter. 
8. Write this letter by following the standard format.

Frequently Asked Questions