Employee Termination Letter Template


If you’re wondering how to terminate an employee, we know it’s not an easy task to undergo but at times, it is necessary. It is absolutely crucial that the employee(s) who is being let go doesn’t feel cheated or humiliated. An evaluation or disciplinary processes that works the best is one where the employee has some kind of idea that he/she is going to be terminated from the company. Ensure you hold a short meeting with the employee so that they know they are going to be fired before they receive the official termination of employment letter.

What should you include in the termination letter template?

Be mindful of the tone and compliance in the termination of employment letter. It is best for everyone if the end of the employment relationship is done on good terms, plus a compliant termination of employment letter helps lower lawsuit risks.

Include the following in your termination of employment letter:

  • Employee name, ID number, position, department and location.
  • Manager or supervisor name that is handling the termination.
  • Include any severance, benefits, and compensation that the employee is entitled to.
  • Detail what company property the employee is expected to return.
  • Highlight legal agreements such non-disclosure, non-compete, etc. that the employee has signed.
  • Make sure your legal counsel checks the termination of employment letter before you send it.

Our employee termination letter sample is an example only and we recommend discussing with your legal council further details so that they can modify it to fit your situation, especially if you are using the employee termination letter for cause.


Termination of Employment Letter Template

Dear Mr. Clarkson,

I am sorry to inform you that as of May 1, 2019, you will no longer be employed with Top Gear Production. As discussed, the reason behind the termination is your reduced performance over the past six months. Following your annual review on December 1, 2018, we came to this decision.

As of May 1, 2019, you are no longer eligible for compensation or benefits associated with your position. Please return your company entrance card, cell phone and laptop before 5 pm on May 1, 2019 to our HR office.

You are entitled to your full salary up until May 1, 2019 and we will compensate you for your remaining vacation days. We are also providing you with severance pay that will amount to two monthly salaries. A separate letter with the complete compensation details and information about your health coverage will be sent to you, as per Consolidated Omnibus Budget Reconciliation Act (COBRA).

Please keep in mind that you signed a non-compete, non-solicitation and non-disclosure agreement. Therefore, if you possess any information about our customers, employees or stakeholders stored on paper or on your personal devices, you must delete it immediately.

I am available for questions or clarifications until the end of the week, do not hesitate to contact me if needed.

We wish you the best of luck.

Richard Hammond


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