2025

5 Termination Letter Templates

Curious to see how to write a termination letter for an employee? Keep reading to discover multiple examples of termination letters.

With a growing workforce, termination letters are a staple at every job. Many employees tend to underperform, show tardiness, or genuinely don’t seem interested in working for their company anymore.

What is a Termination Letter?

A termination letter is a standard notice from an employer to employees that they are being dismissed from their jobs. It provides information regarding the reason for dismissal, any benefits or final pay the employee may receive the date of their final paycheck, and other relevant details.

How to Write a Termination Letter?

Letting someone go is complex, and a termination letter is key to ensuring that employees don’t feel cheated or degraded. If your disciplinary or evaluation processes work well, the employee should have had some forewarning that termination may be coming.

Make sure to set a concise meeting with the employee to let them know they are being let go before you send them an official termination of employment letter.

Similar cases exist where you need to temporarily fire employees—this is also known as furloughing. Employee leave is either partially paid or mandatory unpaid time off, during which employees are usually qualified for unemployment and other benefits.

Several reasons may lead to layoffs, such as reduced overhead costs or administrative restructuring. As an HR professional, inform employees about the layoffs through an employee furlough letter.

Craft the termination letter with two elements: tone and compliance. It is in everyone’s best interest to close the working relationship with the employee on amicable terms, and a fully obliging termination letter helps decrease the chances of lawsuits.

Take into consideration these factors when drafting a termination letter:

  • Discuss with a lawyer to ensure you can legally terminate this employee and learn more about relevant terms. For example, in some countries, you must give ample notice, reasons for termination, and severance pay.
  • Decide on what the final day before the termination or layoff should be with their unit supervisor or department head.
  • Collect all procedures that are in effect after an employee has been terminated or furloughed so you can remind them in your letter.
  • Be conscious of the tone; be tactful but firm. If feasible, ask a fellow HR coworker to read the letter and let you know if anything sounds wrong.
  • Let the employee know the date of their termination.
  • State the precise and detailed reason(s) for his/her termination.
  • Mention compensation and benefits, if any.
  • Notify that they must immediately return all company property.
  • Take them through important and applicable clauses or terms in their signed agreements.
  • Include the company’s HR contact details if they or their future employer need to contact them.

Why is a Termination Letter Important?

As unfortunate as it is, the reasons for going out there and getting the termination letter are significant.

  1. If necessary, the termination letter states the employer’s justification for terminating the employee in detail. If the individual has a termination letter outlining the grounds for the firing, the company will find it more difficult to modify its narrative subsequently.
  2. A termination letter specifies the date of termination. This is critical since there are several deadlines for filing complaints against an employer in case of wrongful termination. Employers frequently suggest that employees have failed to meet a deadline and are, thus, barred from pursuing claims.
  3. The termination letter debunks claims that the worker resigned. Some companies may argue that they did not fire an employee and that the employee freely departed or abandoned their employment. It is commonly done for strategic purposes to avoid blame. Nevertheless, if the employee receives a termination letter, the employer cannot claim that the person was never let go.
  4. It helps avoid situations where a previous employee claims they were fired without reason or awareness.

Basic Sample Termination Letter Template

Dear [name],

I regret to inform you that you will no longer be employed by [company_name] as of [termination_date]. This is the soundest decision because of [insert reason for termination].

From [termination_date] on, you won’t be qualified for any payment or benefits associated with your role. Therefore, please return [company possessions that must be returned] before [date] to the Human Resources office.

You are entitled to your salary until [termination_date], and we will compensate you for your remaining vacation days. In addition, we will also offer severance payments that will amount to [amount]. [You will receive a separate letter with the settlement details or other corresponding information you are permitted to receive from us].

Please remember that you have signed a non-compete, non-disclosure, and non-solicitation agreement. If you have any knowledge about our employees, customers, or other stakeholders stored on paper or your appliances, you must remove it immediately.

If you need clarification or have questions, I am available for up to [five] working days after your last day of employment.

We wish you the best of luck.

[Your name and signature]

Poor Performance Termination Letter Template Example

Dear [name],

I am saddened to inform you that as of [mm/dd/yy], you will no longer be employed with [company_name], and this is your contract termination letter. As examined, the reasoning behind this is your receded performance over the past six months.

We made this judgment after your Performance Improvement Plan ended, which we embarked on [mm/dd/yy]. From [date] on, you will not be qualified for any settlement or benefits associated with your appointment. Please yield your swipe card, organization cell phone, and laptop by [time] on [date] to our HR office.

You are authorized to pay your salary up until [date], and we will reimburse you for your remaining vacation days. We will also provide severance pay that will amount to two monthly salaries. You will receive a separate letter with the complete compensation details and information about your health coverage.

Please remember that you have signed a non-compete, non-solicitation, and non-disclosure agreement. Therefore, if you have any information about our customers, employees, or other stakeholders stored on paper or your devices, you must remove it immediately.

I am available until the end of next week if you have any questions.

We wish you the best of luck.

[Employer_name]

Sample Employee Termination Letter Due to Prolonged Absence

Few employees go on an unexplained leave of absence for prolonged periods, wherein they are uncontactable or there are no signs of returning to the organization. This is highly unacceptable behavior as per any company rule. Therefore, here is a termination letter to send out to such employees.

Dear ABC,

Subject: Employment Termination

Our unfortunate duty is to inform you that this letter confirms that your employment with [company name] has been terminated on [ termination date].

The reason for termination is your multiple unexplained and uninformed leave of absence from work for prolonged periods.

You will receive your entitled severance package as per company policy. In addition, you will receive a statement detailing your accrued benefits.

[Name of HR executive] will discuss the final details with you as well as answer your questions or doubts, if any. Kindly contact him/her as soon as possible to discuss your termination process and final package.

This action by us was deemed necessary. We wish you success in your future endeavors.

Yours truly,

[Name]

[Title]

[Signature]

Employee Termination Letter for Probationary Employee

Employers usually hire employees and keep them on probation for a few months before confirming their employment.

This probation period generally lasts 90 days or three months. However, it varies from company to company. Suppose the employee’s performance and professional conduct are not satisfactory and fall below the company’s expectations. In that case, they are given an employee termination letter to relieve them from employment with the company.

[Name of Manager]

[Title]

[Phone Number]

[Email]

[Date]

[Recipient Name]

[Title]

[Company Name]

Dear ABC [Recipient Name],

We acknowledge and recognize the effort you’ve put into your job role as during your probationary period with [firm name].

Regrettably, the results did not meet business expectations. Accordingly, we inform you that your employment with (firm name) is terminated effective today [or add date].

We will process your outstanding salary and Record of Employment on the next scheduled payment date [add date]. These documents will be mailed to your home address.

We wish you the best in your forthcoming endeavors.

Sincerely,

[Name of Manager]

[Title]

[Phone Number]

[Email]

[Date]

Furlough Letter Example

Dear [name],

I am sorry to notify you that your placement will be temporarily on furlough from [date] to [date] due to urgent business circumstances. Hopefully, we can mend your employment after this critical time.

Here is what to expect:

  • During this time, you will not acquire any payments from the company. You must also thoroughly withdraw from your working duties.
  • The company will persist in paying for your health and car insurance.
  • You may be qualified for unemployment benefits under specific criteria.
  • Your present PTO balance will stay the same.

We commit to doing our best to bring you back again soon. If you need more clarity, don’t hesitate to contact me or [name].

We wish you the best of luck.

[Employer_name]

Conclusively, companies should focus on drafting termination letters that acknowledge the employee’s contribution, are considerate of their situation, and still convey the company’s message. Employee termination letters are a must-have for all organizations.

FAQs

Here are the most frequently asked questions about termination letters.

What is included in a termination letter?

A termination letter typically outlines the reasons for termination, the effective date, and the expectations for the departing employee. It may also provide details about returning company property, such as laptops or access cards, and inform employees about their final paycheck and benefits.

What does “terminated effective immediately” mean?

When an employee is terminated effective immediately, their employment ends on the same day they are informed. They are no longer allowed to perform job duties, and arrangements are often made for the immediate return of company assets.

How should a departing employee return company property?

The letter of termination will generally specify how and when a departing employee should return company property, including items such as computers, phones, and identification badges. Prompt compliance with these instructions is crucial to avoid potential disputes.

When can I expect my final paycheck after being terminated?

The timing of a final paycheck depends on local labor laws and company policies. In many jurisdictions, the paycheck must be provided on or shortly after the termination date. The letter of termination may outline when and how the final payment will be issued.

What happens to employee benefits after termination?

Termination often affects employee benefits such as health insurance, retirement plans, or stock options. The letter of termination may include information about the continuation or cessation of these benefits and instructions for transitioning coverage, such as COBRA for healthcare.

Does the company have the right to hold back a final paycheck if company assets aren’t returned?

While employers may request the return of company assets, withholding a final paycheck as a penalty is often not allowed under labor laws. Any issues related to unreturned property are typically handled separately from final wage disbursement.

Can a terminated employee access company systems after termination?

No, once an employee is terminated, access to company systems is typically revoked immediately to protect sensitive information and maintain security. The termination letter often includes details about deactivating accounts and ensuring the departing employee no longer has access to company networks or data.

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Josh Fechter
Josh Fechter is the founder of HR.University. He's a certified HR professional and has managed global teams across 5 different continents including their benefits and payroll. You can connect with him on LinkedIn here.