Termination Letter - Format, Meaning, Tips, and
Examples
Termination of an employee, even though disturbing, is still a crucial part of an
employer’s job responsibility. Every employer has to face the unpleasant experience of
terminating an employee in their professional journey.
However, the employer or the manager can change the way they approach the
termination process. This process starts with the Termination Letter. Employers should
focus on drafting a letter of termination that appreciates the employee’s contribution, is
concerned about their situation, and still conveys the message of the company.
So, What is a termination letter?
Termination Letter - Meaning
A Termination Letter is also known as a Letter of Termination, disqualification letter, a
notice of termination, termination statement, or letter of separation. This is a letter
issued to an employee to inform them about their termination from the job. It contains
the date of termination and the reason behind it.
Letter of Termination also includes other useful information like the next steps
employees should take, whether they are liable for any compensation, and how they
can collect their full and final salary and documents.
How to Write a Termination Statement?
Consider the following points while you write an employment disqualification letter:
- State the date of termination to the employee
- Mention the accurate and detailed reason(s) for their termination.
- Write the compensation and benefits, if any
- Notify the employee that he/she should return all the company property immediately.
- Take them through all the applicable and important clauses and conditions in their
signed document.
- Always remember to include the HR details, if they or their future company would
need to get in touch.
Why is a Termination Statement Important?
As terrible as it is, there are important reasons for going out and receiving the
termination notice:
1. It states the employer’s justification for terminating the employee in detail, if
necessary. If the employee receives a letter of separation that explains why they were
fired, it will be more difficult for the corporation to change its story later.
2. A termination statement specifies the date of termination. It's crucial because there
are many deadlines for filing wrongful termination lawsuits against an employer.
Employers frequently allege that employees have missed a deadline and, as a result, are
prevented from filing claims.
3. The termination letter refutes the employee's allegation that he or she resigned.
Some businesses may claim that they did not terminate an employee and that the
individual voluntarily left or abandoned their job. It's usually done for strategic reasons
to avoid being held accountable. However, the employer cannot argue that the
employee was never fired if the employee receives a termination notice.
4. Finally, while there is no legal obligation to write or submit a letter of termination,
detailed and thorough termination notice can assist avoid instances where a previous
employee claims they were fired without cause or knowledge.
Types of Termination Letters
There are 4 types of terminations:
1. Voluntary Termination
2. Involuntary Termination
3. At-Will Termination
4. Mutual Termination
There are two other types of termination statements - with cause and without cause.
A without cause termination letter is issued when the employee is terminated due to
issues related to the company. These issues include reducing the size of the company or
change in the organizational structure. It is nowhere related to the performance and
behavior of the employee.
While a with cause termination letter is issued when an employee is dismissed due to
the performance or behavior of the employee. For instance, if an employee is
chronically absent despite repetitive warnings, a company may issue a With Cause
Termination notice.
Having so many types of letters of termination, it might be a bit hectic to find one in
your database when required. Would you want a place where you can get access to all
the different types of HR Letters and you just need to edit and download the document?
Ultimate Business Systems - an excellent HRMS Software is the solution.
Employee Termination Letter Format
[Date]
Dear [Employee Name]
We regret to inform you that your employment with [Company Name] is terminated
from [Date]. This termination is the reason of:
[Explain Reason 1]
[Explain Reason 2]
We request you to return all the company property you were issued anytime during
your employment. Delay in this process would reflect in your F&F.
Your Full and Final settlement would be done as per the company’s policies. If you are
eligible for any paid leaves, they will be identified and paid according to the
organizational regulations. You can contact us anytime in case of any queries.
Sincerely,
[Signature]
[Your Name]
[Designation]
[Company Name]
Employee Letter of Termination Example
10th November 2021
Dear Akshat Goel
We regret to notify you that your work as a manager with XYZ Solutions Pvt. Ltd. will
officially end on 22nd December 2020.
The organization’s decision to fire you is based upon your poor performance in the last
90 days, which has not improved despite repeated warnings. You were already
provided with a written warning indicating the result of continued poor performance.
We request you to return all the company property you were issued anytime during
your employment. Delay in this process would reflect in your F&F.
Your Full and Final settlement would be done as per the company’s policies. If you are
eligible for any paid leaves, they will be identified and paid according to the
organizational regulations. You can contact us anytime in case of any queries.
Sincerely,
[Signature]
Palak Shah
HR Manager
XYZ Solutions Pvt. Ltd.
Wrapping Up
Termination is a crucial part of a company. When an employee is not performing well
despite several warnings, the only solution is termination. A termination Letter helps
you inform your employee about the termination and the reason behind it.
With a leading HRMS Software India, get access to all types of termination letters and
other letters in just one place. We provide you with a lite edit feature for all the HR
documents. You just need to click the letter, fill in a few details, and the ready-to-use
letter will be sent to your email.
Get in touch with us to know how our efficient HRMS Software works.
Meta Description - Are you looking for a termination letter that conveys your
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Format 1
(Company Name)
(Street Address)
(City, State Pin Code)
Dear ABC,
This letter is to confirm that your employment with [Company name] stands
terminated effective [date].
The internal investigation has concluded that your actions on [date of the incident]
towards your colleagues violated the [name of policy violated] policy.
We have received your laptop and keys at the termination meeting. You will receive a
separate communication for the final paycheck and other benefits.
If you have any questions, you may contact [name]
Sincerely,
(Name)
(Title)
(Signature)
Format 2
[Company Name]
[Company Address]
Date: DD, MM, YY
Dear [Employee Name],
We are writing this letter to formally notify you that you would not be required to
continue as [Job Title] with [Company name] due to [state the reason]. Your position
stands terminated from [mention the effective date].
[Explain the reason for termination in brief].
In the light of these reasons, termination is the only possibility. Your final payment of
dues including salary for [no.of months] month in lieu of notice will be made to you at
the end of the month. If you have any queries and wish to discuss this matter further,
please feel free to connect with the HR Department.
Regards
Your Designation
