1. Human Resources
  2. Tools and Samples

Employee Termination Letter

Employee termination letter made easy with four samples and a free template download.
Paul Peters
By Paul Peters, May 20, 2024
Paul Peters is the Chief Editor of Betterteam. He's a former print journalist and small business owner and has written articles for a variety of newspapers, magazines and websites.
Employer handing an employee a termination letter.

A termination letter notifies an employee that he or she has been fired, lists the next steps they need to take, and explains the benefits or compensation they are due to receive. Termination letters are also called a pink slip, letter of termination, contract termination letter, letter of separation, and notice of termination of employment.

Employee Termination Letter Sample Template:

[Date Letter is Drafted]

[Employee Name],

This letter is to inform you that your employment with [company name] will end as of [date termination is effective].

You have been terminated for the following reason(s):

[List factual reasons for termination].

This decision is not reversible.

You will receive: [List compensation they will receive, including pay for unused leave, severance pay, salary owed, etc.].

Your health care benefits will [explanation of what will happen with their benefits].

You are requested to return [list all company property to be returned].

Also, please keep in mind that you have signed [list any agreements employee has signed, such as a confidentiality policy or a nonsolicitation agreement].

If you have questions about policies you have signed, your compensation, benefits, or returning company property, please contact [contact name, typically someone from HR, with contact info].

Sincerely,

[Name of person handling termination]

Employee Termination Letter Download:

Download this free employee termination letter in Microsoft Word format.

Download Now

Sample Termination Letters:

The following termination letter samples are examples only. Talk to your legal counsel before sending a sample termination letter so they can modify it to correctly fit your situation, especially if you plan on using a sample termination letter for cause.

1. Basic termination letter to an employee without cause.

Oct. 29, 2017

Mr. Peters,

This employment termination letter is to inform you that your employment with The Internet Company will end as of October 29, 2017. This decision cannot be changed.

You will receive your final paycheck for this month and payment for your remaining leave today. Once you have signed and returned the attached release of claims document, you will receive a $25,000 severance payment.

Your health care benefits will remain in effect for another 90 days.

You are requested to return the company laptop, swipe card, and cell phone before the end of the day.

Also, keep in mind that you have signed a confidentiality agreement. Please review the attached copy.

If you have questions about compensation, benefits, company property, or policies you have signed, please contact John Doe at 1 (800) 555-0600.

Sincerely,

Barry White

2. Sample termination letter without cause (staff reduction).

Oct. 1, 2020

Mr. Peters,

This letter of termination of employment is to inform you that your employment with Pied Piper, Inc. will end as of October 29, 2020. This decision is final and will not be modified.

You have been terminated for the following reasons:

Recent economic conditions have caused a significant downturn in sales, necessitating a 20 percent workforce reduction at Pied Piper. Unfortunately, your position is part of this reduction and has been eliminated.

You will receive your final paycheck after your last day, as well as payment for your remaining leave. You will also receive a $15,000 severance payment provided the attached release of claims document is signed and returned.

Your health care benefits will remain in effect for 180 days after your termination takes effect.

You are requested to return the company vehicle, key card, and cell phone on your last day of employment.

Also, please keep in mind that you have signed a number of agreements that prohibit you from divulging confidential information. Please review the attached copies.

If you have questions about this letter, please contact John Smith at 1 (800) 555-0600.

Sincerely,

Jack Barker

3. Sample termination letter for cause (attendance).

Oct. 29, 2018

Mr. Peters,

This separation letter is to inform you that your employment with Acme Internet Inc. will end as of October 29, 2018. This decision is not reversible.

We decided to terminate your employment for these reasons:

On September 29, 2018, you were absent from work without leave. At that time, you were given a formal written warning that your absence violated company policy.

On October 18, 2018, you were again absent from work, without leave. At that time you were given a second warning and informed that a third case within a year would result in your termination.

On October 28, 2018, you were absent from work without leave a third time, resulting in your termination.

Included with this letter of employment termination is your final paycheck.

Your health care benefits will remain in effect for 60 days.

You are requested to return any company property, such as laptops, keys, and books, before the end of the day.

Also, please keep in mind that you have signed a non-solicitation agreement. Please review the attached copy.

If you have questions about compensation, benefits, company property, or policies you have signed, please contact Jane Doe at 1 (800) 555-0600.

Sincerely,

Francis Bacon

4. Sample letter of termination of employment due to poor performance.

Oct. 29, 2021

Mr. Peters,

This letter is to inform you that your employment with Internet Industries Corp. will end as of October 29, 2021. This decision is not reversible.

Your employment was terminated for these performance reasons:

On July 1, 2021, you received performance coaching and were informed that your performance would be required to improve if your employment with Internet Industries Corp. were to continue. On August 25, 2021, you received a second warning and were informed that failure to improve performance within 60 days would result in your termination.

You have failed to meet the performance targets agreed upon. As a result, your employment has been terminated.

You will receive your final check for this month in the mail in 7 days. Once we have received a signed copy of the attached release of claims document, you will receive a $5,000 severance payment.

Your health care benefits will remain in effect for 35 days.

You are requested to return all company property, including your car, cell phone, and ID badge, before the end of the day.

If you have questions about compensation, benefits, company property, or policies you have signed, please contact Jane Doe at 1 (800) 555-1212.

Sincerely,

Justin Vernon

Read More:

Need more guidance? Check out our article on firing an employee. Have an employee who has stopped showing up for work? Check out our guide to job abandonment, which includes a letter template for this situation.

If you're laying an employee off, rather than firing them, check out our layoff letter.

Also, if you need to replace someone quickly, check out our guide to finding employees, or post a job on free job posting sites. You may also want to check out our guide to attrition and our guide to employee turnover.

Disciplinary Action

Disciplinary Action

Includes a policy, explanation of the process, and answers to common questions.

FAQs:

How do I write a termination letter to an employee?

  1. Add the employee's name, ID number, position, and department.
  2. Add the name of the manager or supervisor handling the termination.
  3. Include any severance, benefits, and compensation the employee is entitled to.
  4. Detail any company property the employee is expected to return.
  5. Highlight any legal agreements, including nondisclosure or noncompete clauses the employee has signed.
  6. Have your legal counsel check the letter before you send it.

Do you have to give an employee a termination letter?

There is no federal law that states that a company must issue a letter of termination; however, many employers do furnish them as a matter of principle. As most employees in the U.S. are at-will employees, the relationship between an employer and employee can end for any reason, or no reason at all, aside from a breach of contract or discrimination involving race, gender, ethnicity, etc.

How do I inform an employee about termination?

You can discuss the termination with the employee, but it is best to have a written notification.

What are the 5 fair reasons for dismissal?

  1. Misconduct.
  2. Performance or capability issues.
  3. Redundancy.
  4. Breach of a statutory restriction.
  5. Some other substantiated reason(s), such as the expiry of a fixed-term contract, a personality clash that severely affects the business, or a significant conflict of interest.

What should be included in a termination letter?

  • The date the termination is effective.
  • The reason(s) for termination.
  • An explanation of their compensation (if any) and what will happen to their benefits.
  • A list of company property to be returned (if any).
  • A reminder of the agreements the employee has signed (if applicable).
  • The contact details of an HR representative.

Does an employee need to sign a termination letter?

No, not signing the termination letter does not affect the termination.

What is the minimum notice period for termination of employment?

Companies are not obliged to give notice to an employee before termination or layoff, unless the employee is under contract or covered by a union agreement. In that case, the employer-employee relationship is regulated by the terms of the contract.

Under the Worker Adjustment and Retraining Notification Act (WARN), employers with 100 or more employees are required to provide 60 days' notice in the case of a mass layoff or plant closure.

State and local laws may differ depending on your location, so be sure to contact your Department of Labor to find out more about local rules and regulations.

Should I consider using an employee termination form?

Typically this will be required in larger companies with big HR departments. They contain basic information about the termination, such as the employee's name, department, position, and date of termination.

When should I use a termination letter?

  • It is required by state or local law.
  • You believe the employee is ineligible for unemployment.
  • You want a record of the termination in case of a lawsuit.
  • The termination needs to be made clear to the employee.
  • You want to provide information on the employee's next steps.
  • You want to pass along information about owed compensation and benefits.

Is there a time when I should not use a termination of employment letter?

It's hard to imagine that situation. If you've got a letter of termination of an employee that just supplies the basic info, and sticks to facts, there's really no reason not to use it. Our termination letter example should be right in all situations. If there is any worry, leave off the reason for termination from the firing email template.

How do I create a severance agreement?

You can learn more by checking out our severance agreement template.

Is discharge the same as terminated?

The terms "discharge" and "terminated" are often used interchangeably, but the meaning changes as far as a contract is concerned. "Discharge of a contract" means that the main obligations of the contract have been met by the employee, signifying the end of the relationship between the employer and employee.

Where can I find more letters for HR?

Related Articles:

Employee Warning Notice

A guide to writing an employee warning notice with a downloadable template.

Wrongful Termination

Definition, resources, and FAQs.

Employee Handbook

Free template download and answers to frequently asked questions.

Insubordination in the Workplace

Learn how to deal with insubordination in the workplace. Includes definition, guide, tips, and FAQs.

Final Paycheck Laws by State

Learn about the final paycheck laws for each state.
Post a Job