Sales & Support: +1 (480) 613-7142
Live Demo Get Started

Employee Termination Letter Template

Monday, June 21st, 2021

A terminated employee leaving the office

Regardless of business size, terminating an employee is one of the more difficult tasks performed by Human Resources. Even though firing an employee is never fun, there are certain things a manager must do to decrease the prospect of legal repercussions. Every company should create a formal termination process in advance and meticulously document each step.

Employee termination is a scary process for both parties. To do it successfully, you need an employee handbook or policy that spells out the grounds on which employees can be fired and what kind of notice will be given before their departure date. If your company doesn’t have such things in place yet, now is the time to write and approve one ASAP! When firing someone who has been inefficient at work (or won’t take action), remember this adage: “Inefficiency is the root of all things.”

Employees can effortlessly file for unfair termination with the Equal Employment Opportunity Commission (EEOC). This means you should tread thoughtfully when contemplating firing someone, even if it seems like a clear-cut case to terminate them. By law, employers are not allowed to fire an employee based on race or sex unless they have violated company policies and procedures explicitly outlined before their hire date. There is always some degree of chance that discrimination complaints against your business could be filed by other employees who don’t want those behaviors around at work again either!

Employees can easily file for unjust dismissal through legal channels found within EEOC regulations, including but not limited to filing claims.

At-Will Employment

At-will employment indicates that an employer has the right to fire employees at any time for any reason. Every state except Montana is free to adopt this policy, so a business can terminate you if they want, and there are no rules about how long someone will work in your company unless it’s explicitly stated by way of contract or employee handbook.

Having an Employee Termination Policy

A termination policy does more than keep a blueprint for handling problem employees. By thinking through your company’s standards and expectations, you can then distribute this information to everyone who works for you. You are also defining one of the critical components of your business culture by creating these documents that will show in any lawsuits over unjust terminations if needed.

Your documentation should include all of the communications that employees receive explaining your company’s general expectations, along with specific work requirements and policies. Initially, these start with a neutral job application form describing what is expected from an employee in this position. Every subsequent document includes details such as when they are eligible for overtime pay or how to report sexual harassment, among other topics.

There are many different types of firing offenses. It is vital to have a termination policy and communicate it to your employees. Still, each type of problem calls for an appropriate response that may not always be the same as other problems.

For example, take an employee that does not meet company standards. In this example, say the employee does not perform the tasks as instructed or does not obey instructions. In such cases, the company can issue corrective instructions, create a formal warning, or terminate the employee.

It is no easy task to let people go. Most employers care about their employees and want them to feel appreciated during difficult times. Because of this, you should give news of termination in person whenever possible. You’ll also avoid much awkwardness if it’s done face-to-face because there won’t need to have an uncomfortable discussion over what happened down the line.

When terminating an employee, make sure to keep the termination process as professional and private as possible. Meetings should take place in a neutral location like a conference room if possible. In addition to the verbal communication of your decision, you may want someone else present (like a witness). The letter should explain how final compensation and benefits will be distributed, including retirement contributions or bonuses that are owed but not yet given out since they were dependent on employment levels achieved by the time of termination. Both parties should take notes during this delicate discussion. This will help both parties remember exactly what was said and agreed upon throughout these proceedings, all while keeping this information safe from prying eyes. Parties can store this information away into their personnel files afterward.

As part of the termination process, you will need a well-crafted letter. This is your chance to say what is on your mind and how you feel about the situation with tact while also giving them an opportunity for rebuttal before finalizing their termination. If this task doesn’t seem like something that sits well in any part of your stomach, then take advantage of one of our employee dismissal letters.

What is an Employee Termination Letter?

A termination letter is a formal notification from an employer to inform the employee that they are being dismissed. This letter typically includes information such as what led to their dismissal, any benefits or severance pay they may receive and the date of the final paycheck.

Terminating an employee is a challenging task, and it’s key to ensure that employees don’t feel cheated or degraded. If your evaluation process works well, the employee should have had some warning that they might be fired before you send them an official termination letter. Make sure to arrange for a brief meeting with the person to know what happened before you officially end their position by sending them this letter.

It can be hard to let go of employees, but sometimes it is necessary. Furloughing an employee for a temporary period of time may happen if your company’s budget does not allow them room to continue with their regular duties. During this time off, they are still eligible for unemployment and other benefits such as health insurance, which will help when returning on board post-furlough! Letting all those that are involved in the process know about this arrangement beforehand is crucial. You don’t want any surprises later down the road after it’s been implemented, so make sure you send out some employee furlough letters through email or snail mail once things have concluded successfully.

Letters to employees are essential for both the company and the individual. An email is not enough; it’s best to show a little more care in your communication with this person who has given their time and energy to help make the business successful. Keep these two things in mind: tone of voice (positive) and compliance (fully following rules). It’s always a good practice to close an employment relationship on favorable terms, so they don’t have any bad feelings towards leaving or filing lawsuits against you later on. A fully compliant termination letter ensures no unnecessary risk from potential legal disputes.

Employee Termination Letter Template Download Employee Termination Letter Template

Do not even think about firing your employees without our letter templates – things will get complicated very quickly if you do so on your own (trust us!). Our Employee Termination Letter Template makes sure that all of their required documents are included as well as what managers need to say when speaking out loud during this unfortunate event. This way, no one gets left behind wondering “what just happened?” after being fired from their job.

(Today’s Date)

Employee Name
Street Address
City, State, ZIP

Dear (Employee):

This letter serves to confirm our discussion that (Company Name) will terminate your employment effective (date) due to (briefly explain the reason for termination).

(If applicable) Enclosed, please find a final paycheck and a check in the amount of $__, which represents your pay for all time worked (and, if applicable, accrued unused vacation and personal time).

If you have any questions concerning this matter, please feel free to contact me.

Sincerely,

(Name)

(Title)

Joshua F.
Redline Electric & Solar

"The best recruiting platform on the market! VIVAHR allowed us to create a dashboard and applicant experience like no other!!"

Get more applicants from the Best Job Boards

Post for free to 50+ job boards
Unlimited Job Postings
Unlimited Applicants

Download Template

 

Does an employer have to provide the terminated employee with a letter?

Employers should provide letters of termination as a matter of principle. As most employees in the U.S. are at-will, employers can terminate their employment for any reason unless there is an issue with discrimination involving race, gender ethnicity, etc.

Employers typically furnish a termination letter to show that they followed best practices and gave due notice before ending work relationships.

What are the notice periods for termination of employment?

When companies let employees go, they are not obliged to give notice unless the employee is under contract or covered by a union agreement. In that case, employers must adhere to contracts and agreements set between themselves and their workers, which can vary in terms of how much advance warning an employer needs to provide before termination.

Under federal law (WARN), any company with 100+ employees who either lays off more than 50 people at once or closes down a business for good has two months’ worth of time from when it plans on doing this so as long as its given written notification beforehand; otherwise, there should be no need for concern since all valid terminations come with ample prior notice time ensured, regardless if you are currently working somewhere else right now.

It is important to be aware of the laws that apply in your own state and locality, not just federal rules. You can visit The Department of Labor’s website for more information.

What are the main reasons employers terminate employees?

Stay up to date

Sign up for VIVAHR's weekly email for hiring essentials.