Use our employment termination letter to formally notify an employee of their dismissal.
Updated October 24, 2023
Written by Sara Hostelley | Reviewed by Brooke Davis
An employment termination letter provides formal notice to an employee that they’re being fired or laid off. Termination of employment is a necessary part of any business, and the responsibility falls on the employer. Even if the employer and employee have a good relationship, it’s best to get this action in writing for the company’s records.
An employment termination letter is a document from an employer to an employee that informs the latter of their dismissal from their role.
Employee termination letters are important because they prove a business acted fairly and legally in terminating an employee. They finalize a termination and usually show that an employee received an opportunity to improve their performance (in the case of poor performance or misconduct).
A termination letter is also one of the final documents the employee will receive so they can learn about company policies around termination and review their next steps.
When terminating executive and senior employees, an employee termination letter also presents an opportunity to remind the employee of any non-disclosure or non-compete agreements they may have signed.
Here’s an example of a termination letter:
RE: OFFICIAL NOTICE OF EMPLOYMENT TERMINATION
Dear Phoebe Maskin,
This letter is to inform you that as of October 31, 2023, you will no longer be employed with Raven Industries. You have been terminated because of your poor attendance at work. Our records show that you’ve received three written warnings and had two conversations with your manager in an attempt to rectify the attendance issues.
We ask you to kindly return the following company property before October 31, 2023: your company-issued laptop and cellphone.
You are entitled to payment up until October 31, 2023.
For any matter regarding health care benefits, health insurance, 401k and/or pension, please contact Katie Standhaft in the human resources department.
Your final paycheck will be in the amount of $1,500, which will be delivered to you via direct deposit.
If you choose to appeal this decision, you may contact Julien Chase in the human resources department.
You can choose to participate in an exit interview. If you wish to do so, the interview will be conducted at a place and date suitable to all parties.
Lucy Duncan
HR Manager
Here are some of the elements to include in an employee termination letter:
Here are some common reasons you may fire an employee:
If a company needs to reduce its workforce because it’s experiencing financial problems, you may fire multiple employees at once as part of a mass layoff. Eliminating some positions can help a company overcome financial instability and position the company for long-term success.
If you want to reduce company costs but not fire an individual permanently, consider writing a furlough letter.
If an employee is failing to follow company rules, guidelines, or safety procedures while on the job, you may have to fire them. This decision often comes after an employer has tried to correct the employee’s behavior.
Sometimes, an employee may not have the knowledge and skills to perform their job properly. You may fire someone who is causing the rest of their team to suffer by failing to meet their performance goals.
If the employee regularly calls out of work or arrives late, you may state this as the reason for terminating their employment. However, employers should have clear guidelines for handling employees with poor attendance to avoid discriminatory claims.
Most states have at-will employment, so employers can usually fire employees without a reason or for any reason as long as it’s not unlawful.
Federal and state laws exist to prevent employers from firing employees for discriminatory reasons. For example, Title VII of the Civil Rights Act of 1964 prevents employers from firing employees based on discrimination as it relates to employees’ national origin, sex, religion, color, and race.
Firing an employee can be a difficult task for an employer. It’s a delicate process they must handle carefully to maintain professionalism.
Here’s a list of steps on how to fire an employee:
Before you fire an employee, review your company’s termination process. Ensure the reasons for firing someone correspond to your company’s policies and confirm the reasons aren’t discriminatory.
Discuss the decision with the appropriate company department, whether it be the company’s legal team or human resources department.
Identify and review the reason for terminating an employee. If the company hasn’t issued any kind of corrective actions yet and they’re part of your company’s termination process, implement these actions.
Set aside time to talk to the employee and explain how they can correct their behavior or performance. Give them a probation period to allow their performance to improve. Use an employee reprimand form to warn them of an impending termination if they don’t correct their performance.
If the employee fails to adjust their performance, keep records of the advice and guidance you offered in an attempt to implement change.
If you’ve exhausted corrective actions and have decided to proceed with termination, schedule an in-person meeting with the employee to deliver the news. Choose a time and day that makes sense for your company’s goals, as you may prefer to deliver the news at the end of a week versus at the beginning of a week.
Inform them of their termination verbally and provide them with a termination letter to keep for their records.
Keep the meeting short to respect the employee’s time, but be mindful that the news may affect them emotionally. Be empathetic and offer them resources if possible. Stay calm and allow them to express their feelings openly.
View our employee termination letter template below and download it in PDF or Word format:
