A termination letter template serves as a formal notice from a manager or supervisor to an employee, contractor, or service provider that their engagement is ending. It typically outlines the reason for dismissal, the date it takes effect, and practical details such as severance, benefits, and the return of company property.
Although ending a working relationship is never pleasant, a clear, concise template streamlines the process and guarantees all required documentation is covered.
In this guide, you’ll find seven complimentary termination letter templates along with up‑to‑date tips for drafting a straightforward, effective termination letter.
Table of Contents
What Is an Employee Termination Letter?
Why Termination Letters Matter
Legal Requirements & Compliance Checklist
Essential Elements Every Termination Letter Must Contain
Step‑by‑Step Guide: How to Write a Termination Letter
Getting a Termination Letter From Your Employer
The 7 Sample Termination Letters (Detailed Templates)
Poor Performance
Misconduct
Absenteeism/Tardiness
Downsizing/Restructuring
Violation of Company Policy
Insubordination
Lack of Required Skills/Adaptability
Best Practices for Compassionate Off‑boarding
Common Mistakes to Avoid
Tools & Resources
Employee Termination Letter FAQs
A termination letter—also known as a letter of termination of employment, employment termination letter, or simply an employee termination letter—is a formal, written notice from employer to employee confirming that the employment relationship will end on a specific date. In jurisdictions that recognise at‑will employment, the letter reinforces the employer’s decision and prevents ambiguity; in jurisdictions that require “just cause”, it documents the legally sufficient grounds for dismissal.
Well‑drafted letters typically include the effective date of termination, a concise but factual reason, reference to any prior warnings or performance improvement plans (if applicable), logistics for the return of company property, details about final pay and benefits, and instructions for next steps such as COBRA or pension rollover requirements. These components provide clarity for the departing employee while creating a defensible paper trail for the organisation.
Verbal discussions are vital for empathy, but only a signed document can:
Satisfy statutory notice in jurisdictions that require written notice.
Protect against wrongful‑termination claims by proving the cause and process.
Standardise off‑boarding so every employee is treated consistently, safeguarding brand reputation.
Beyond mere compliance, a carefully crafted letter achieves four critical objectives:
Legal Protection: A documented chronology of performance issues, warnings, and final action reduces the risk of expensive litigation or unemployment‑benefit disputes.
Employee Clarity: Specifics on last day worked, severance, and benefit continuation eliminate confusion that often fuels grievances.
Brand Preservation: Departing employees who feel respected are far less likely to post negative reviews or discourage future candidates.
Operational Efficiency: Clear return‑of‑property checklists accelerate asset recovery and IT off‑boarding, reducing security risks.
Pro‑tip: Keep your template aligned with the latest federal, state, and provincial statutes. Labor laws evolve—especially around final‑pay timing and accrued PTO. Review templates at least annually with counsel.
Failure to comply with local, state, or national labor laws can convert a simple dismissal into a six‑figure liability. Use the following checklist (and add jurisdiction‑specific items) before sending any termination notice:
| # | Compliance Item | Why It Matters |
|---|---|---|
| 1 | Statutory notice period or payment in lieu | Required in many countries and some US states to avoid “wrongful dismissal.” |
| 2 | Final paycheck timing & contents | States like California require payment immediately; others allow next regular payroll. |
| 3 | Accrued PTO payout | Mandated in 24+ US states and most of EU/UK legislation. |
| 4 | COBRA or equivalent benefits continuation notice | Federal requirement for US employers with 20+ staff. |
| 5 | Unemployment insurance reporting | Failure to report separation can delay employee benefits and trigger fines. |
| 6 | Record‑keeping retention | EEOC and IRS recommend retaining termination docs for 3–7 years. |
| 7 | Protected‑class analysis | Ensure dismissal is unrelated to race, gender, pregnancy, disability, union activity, or whistle‑blowing. |
| 8 | Non‑compete and NDA reminders | Courts enforce only reasonable covenants; spell them out to maintain enforceability. |
| 9 | Translation requirements | Some jurisdictions (e.g., Quebec, parts of EU) require letters in the employee’s primary language. |
Action Step: Create a pre‑termination checklist in your HRIS or applicant‑tracking system so managers can’t generate a letter until each compliance box is ticked.
Drawing from both attached articles and HR best practice, include the following 10 sections in every termination letter template:
Header Information – Company logo, address, and date.
Employee Details – Name, job title, department, employee ID.
Subject Line – e.g., “Notice of Termination of Employment.”
Opening & Effective Date – A direct statement that employment ends on Month Day, Year.
Reason for Termination – Keep it factual: performance, misconduct, redundancy, etc.
Historical Context – Summary of prior warnings, performance reviews, or investigation findings to demonstrate due process.
Company Property Return – Clear checklist and deadline (keys, laptop, access cards, uniforms, proprietary data).
Final Pay & Benefits – Severance eligibility, PTO payout, bonus proration, and benefits end date.
Post‑Employment Obligations – Non‑disclosure, non‑compete, or intellectual‑property clauses.
Point of Contact – HR representative or manager for questions.
Collect employment agreement, policy manuals, performance evaluations, and any investigative reports. Courts scrutinise consistency; ensure that the employee’s file supports the stated reason.
Templates standardise tone and ensure compliance language is not forgotten. Select the type—performance, misconduct, or redundancy—that matches the fact pattern.
“This letter confirms our discussion on April 21, 2025, during which we informed you that your employment with Orion Biotech will end effective May 5, 2025.”
Avoid adjectives (“unacceptable,” “terrible”). Preference is for measurable facts: “You failed to meet 70% of quarterly sales targets over four consecutive quarters.”
If the basis is for cause, list dates and documents previously provided: “Verbal warning (Dec 12, 2024), written warning (Jan 22, 2025), Performance Improvement Plan (Feb 1–Mar 31, 2025).”
Include deadlines for company property return, revocation of system access, exit‑interview scheduling, and outplacement services if offered.
Spell out gross severance, deductions, PTO payout, bonus treatment, stock‑option vesting status, and benefit‑continuation instructions.
Remind the employee of confidentiality, IP assignment, or non‑solicitation clauses.
Designate an HR or payroll specialist to field questions and keep the tone professional.
A misplaced phrase can create liability. Run every draft through legal or an HR compliance partner.
How to write a termination letter? Follow the 10‑step framework above, ensuring clarity, compliance, and courtesy.
How to write termination letter? Keep it concise, factual, and include effective date, reason, and next steps.
How to get a termination letter from employer? Politely request a written notice from HR. In many jurisdictions, employers are obliged to provide one within a specified timeframe.
Employees sometimes need an official “letter of termination” to trigger unemployment benefits, immigration‑status changes, or loan‑forgiveness clauses. If yours wasn’t automatically issued, take these steps:
Submit a Written Request – Email HR citing the relevant labor‑code section or company policy that entitles you to a written notice.
Specify the Needed Details – Ask for effective date, reason, and reference to any severance or continuation coverage.
Follow Up Politely but Firmly – If HR delays, remind them of statutory time limits (e.g., California: 72 hours for final pay, 5 days for written notice).
Escalate if Necessary – Contact the labor department or seek legal advice if your employer refuses.
Subject: Notice of Termination of Employment – Performance
Dear [Employee Name],
This letter confirms our discussion on [Date], during which we informed you that your employment with [Company Name] will be terminated effective [Termination Date].
Despite multiple coaching sessions and a formal Performance Improvement Plan (PIP) issued on [PIP Start Date], your performance has not met the expectations outlined for your role as [Job Title]. Specifically:
Failure to achieve a minimum of 80% of quarterly sales targets for Q3 and Q4 2024.
Sub‑standard customer‑satisfaction ratings (3.2/5 vs departmental benchmark of 4.5).
Missed project deadlines on [Project Names], resulting in client escalations.
Company property (laptop, key‑card, and corporate credit card) must be returned to IT by [Return Deadline]. Your final paycheck, including payment for [Unused PTO Hours] hours of unused PTO, will be available on [Final Pay Date]. Health‑insurance coverage ends [Benefit End Date]; COBRA information will be mailed to your address on file within 5 business days.
If you have questions, contact [HR Contact Name] at [Phone/Email].
Sincerely,
[Manager Name]
[Title]
Subject: Immediate Termination of Employment – Misconduct
Dear [Employee Name],
Following an internal investigation concluded on [Date], we have determined that your behaviour on [Incident Date] constituted a serious violation of [Company Policy Name]. Specifically, video evidence and witness statements confirmed that you [describe misconduct: e.g., falsified expense reports totalling $1,850].
In accordance with Section 12 of our Employee Handbook, this behaviour constitutes gross misconduct and warrants immediate dismissal. Your employment with [Company Name] terminates effective immediately.
All access to company systems has been revoked. Please arrange to return your laptop and security badge to the security desk by 5 p.m. today. Failure to do so will result in the matter being referred to local law enforcement.
Your final wages for hours worked through today will be available via direct deposit within 24 hours. You are not eligible for severance under the terms of our Misconduct Policy.
You may request copies of the investigation file by contacting HR. For benefit questions, email benefits@[CompanyDomain].com.
Sincerely,
[Manager Name]
Subject: Termination of Employment – Attendance
Dear [Employee Name],
Over the past six months, you have accrued 14 unexcused absences and arrived more than 30 minutes late on nine occasions. This exceeds our Attendance Policy limit of 6 unexcused absences per rolling 12‑month period.
You received a verbal warning on [Date] and a written warning on [Date], yet the attendance issues persisted. As a result, your employment will end on [Termination Date].
Company property must be returned no later than noon on [Termination Date]. You will receive your final pay—including payout for [Unused PTO Hours] hours—on the next regular payroll date.
We wish you success in future roles where consistent attendance expectations can be met.
Sincerely,
[Manager Name]
Subject: Position Elimination – Notice of Termination
Dear [Employee Name],
After an exhaustive review of our 2025 operating budget, [Company Name] is implementing a company‑wide restructuring to ensure long‑term sustainability. Regrettably, your position [Job Title] has been eliminated, and your employment will end on [Termination Date].
This decision is not a reflection of your performance. We value the contributions you made over your [X] years with us.
To aid your transition, we are providing:
Severance Pay: [Amount] equivalent to [X] weeks of base salary.
COBRA Subsidy: 100% of health‑insurance premiums for three months.
Outplacement Services: Six months of professional career‑coaching.
Please attend the off‑boarding meeting on [Date] to review paperwork and return company equipment.
Thank you for your dedication, and we wish you every success.
Sincerely,
[Manager Name]
Subject: Termination for Policy Violation – Confidentiality Breach
Dear [Employee Name],
On [Incident Date], you forwarded proprietary design documents to your personal email account, contrary to our Confidential Information Policy (Section 8, Employee Handbook).
Given the sensitive nature of the data involved, we have no alternative but to terminate your employment effective immediately.
Your final pay, less deductions for unreturned property, will be processed within 24 hours. Please contact security@[CompanyDomain].com to arrange data‑wiping of your personal devices containing company IP.
Sincerely,
[Manager Name]
Subject: Notice of Termination – Insubordination
Dear [Employee Name],
On [Date], you refused a direct instruction from [Supervisor Name] to attend mandatory safety training. The refusal was repeated in writing on [Date]. Under Section 4 of our Conduct Policy, insubordination warrants dismissal after written warning.
Therefore, your employment ends on [Termination Date]. Please meet HR at 10 a.m. to return company property and collect the final paycheck.
Sincerely,
[Manager Name]
Subject: Termination of Employment – Role Fit
Dear [Employee Name],
Over the past nine months we have observed a continuing gap between the technical requirements of the Senior Data Analyst role and your current skill set, particularly in Python‑based data‑pipelines and AWS Redshift. Despite training and mentorship, the required proficiency has not been achieved.
Consequently, your employment will end on [Termination Date]. We encourage you to pursue roles aligned with your strengths and will provide a neutral reference confirming your employment dates and duties.
Please return all company assets by 5 p.m. on your last day. Severance equivalent to two weeks of base pay will be provided.
Sincerely,
[Manager Name]
Deliver the News in Person First – Whenever feasible, conduct a face‑to‑face (or video) meeting before sending the letter.
Time It Thoughtfully – Mid‑week mornings allow the employee to seek immediate support resources, avoiding the isolation of a weekend.
Offer Outplacement and References – Demonstrates goodwill and mitigates negative online reviews.
Provide Emotional‑Support Resources – EAP hotlines, counselling sessions, or mental‑health apps.
Train Managers on Difficult Conversations – Role‑play scenarios and provide scripts to ensure consistency.
Vague Language – Invite legal challenges; be specific.
Surprise Terminations – Unless gross misconduct, employees should see it coming via progressive discipline.
Inconsistent Severance – Creates perceptions of discrimination.
Delay in Final Pay – Risk statutory penalties in many jurisdictions.
Retaliation Triggers – Avoid dismissing shortly after protected activity (e.g., whistle‑blowing).
HRIS Termination Workflows – BambooHR, HiBob, UKG.
Template Libraries – Society for Human Resource Management (SHRM) termination toolkit.
Legal Reference – U.S. Department of Labor employer guidance, ACAS (UK), Fair Work Ombudsman (Australia).
Outplacement Vendors – Randstad RiseSmart, Lee Hecht Harrison.
Is a termination letter required by law?
Not universally, but many jurisdictions mandate written notice in specific circumstances. Even when optional, it is best practice.
Can we email the termination letter?
Yes, provided you also offer a signed hard copy or secure PDF, and the employee has acknowledged electronic delivery consent.
How many warnings before termination for poor performance?
There is no fixed rule; however, progressive discipline (verbal + written + PIP) is advisable to show reasonable opportunity to improve.
Should we mention severance in the letter?
Absolutely—spell out the gross amount, payment schedule, and any release‑of‑claims conditions.
What if the employee refuses to sign?
Their refusal does not invalidate the termination. Note the refusal, have a witness sign, and proceed.
Writing an effective termination letter from employer to employee is equal parts legal compliance, clear communication, and human empathy. By following the frameworks, checklists, and seven detailed templates above, you can protect your organisation while treating departing employees with dignity. Bookmark this guide, add the templates to your HRIS, and revisit the compliance checklist quarterly to ensure your processes remain up to date.
This article is for informational purposes only and does not constitute legal advice. Consult qualified counsel to address your specific circumstances.