Employee Termination Letter

An Employee Termination Letter is a way for an employer to inform its employee that they are being let go.

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An Employee Termination Letter is not a pleasant letter to receive or write. While the employer doesn't have to deliver the Employee Termination in person, those in charge need to write it and keep it in their records. In most cases, the Employee Termination Letter is preceded by a warning letter or an in-person reprimand.

That's only in the case of termination with a cause. An employer doesn't have to offer a reason and can fire employees at-will.

What Is an Employee Termination Letter?

An Employee Termination Letter is a standard document used when an employer decides to terminate an employee's employment for any reason. Writing a letter like this can be complicated as it requires all the right details, all while keeping the matter precise and the tone final. It should outline all company assets the employee should return, and the final date required at the job in question.

The termination process might differ from employer to employer and the relevant state law. However, the Employee Termination Letter is an essential piece of employment documentation for any company.

Other Names for Employee Termination Letter

Depending on your state, an Employee Termination Letter may also be known as:

  • Employment Termination Letter
  • Dismissal Letter
  • Termination Letter
  • Notice of Termination
  • Letter of Dismissal from Employment

Who Needs an Employee Termination Letter?

An Employee Termination Letter is a useful document for business owners, big and small. Especially in more prominent companies, the letter creates a paper trail of hiring and letting employees go.

Why Use 360 Legal Forms for Your Employee Termination Letter

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Create your own documents by answering our easy-to-understand questionnaires to get exactly what you need out of your Employee Termination Letter.

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How to Create an Employee Termination Letter with 360 Legal Forms

Writing an Employee Termination Letter usually involves a lot of tact and careful word choices. More importantly, it requires all the necessary details and clarity about what will happen onward.

Let 360 Legal Forms help with our extensive library of attorney-vetted legal forms. The process is fast and easy. All you have to do is fill out our easy-to-understand questionnaire. Once complete, simply download your form as a PDF or Word document from your secure online account.

What Information Will I Need to Create My Employee Termination Letter?

To create your document, please provide:

  • Date and Location: The date when the document is to be created and the address.
  • Employer Details: The legal name of the company, governing state, and contact information.
  • Employee Details: The legal name of the employee involved and contact information.
  • Reason: Specify the reason for terminating the employee.
  • Compensation: The amount of the final pay or severance package.
  • Final Day: Include the date of the employee's last day at the job.
  • Company Possessions: A list of all company assets the employee is to return to the company.
  • Additional Clauses: Non-disparagement, non-solicitation, or non-disclosure clause.
  • Post-Termination Process: Details if the employee has a right to appeal and if an exit interview is in the offing.

Employee Termination Letter Terms

  • Termination: A decision by the employer to end the employment of an employee
  • Misconduct: Unacceptable workplace behavior or mismanagement at work
  • Severance Package: The package of benefits an employee is entitled to upon leaving the company
  • Resignation: A decision by an employee to quit
  • At-Will Employment: An arrangement where the employer can hire and fire anyone for any legal reason
  • Non-Compete: An agreement to not compete against the employer's business
  • Non-Solicitation: An agreement to not approach other employees or the clients of the employer
  • Non-Disclosure: An agreement to not reveal any trade secrets or proprietary information of the employer
  • Revocation: The cancellation of a contract
  • Exit Interview: A type of interview involving a departing employee

Employee Termination Letter Signing Requirements

For the Employee Termination Letter to be valid and legally binding, it only needs the signature of an authorized person representing the company. The employee doesn't have to sign the document, nor is notarization required.

What to Do with Your Employee Termination Letter

Usually, the employer gives the termination letter to the employee in person or by email. The company then keeps the copy with the HR department.

Frequently Asked Questions

Essentially, a termination is getting fired for work performance. If an employee displays an unsatisfactory quality of work, insubordination, theft, or even chronic tardiness, the employer has the right to fire them whenever. They may not even have to have a reason at all. In contrast, a layoff occurs due to a company's downsizing, relocation, outsourcing, or merger. Companies usually lay off workers in groups and offer them severance packages. Lays-offs could also mean that the situation is temporary, though a larger employer usually uses the furlough for this purpose.

An Employee Separation Agreement is another type of termination. Employers use it to protect themselves from any liabilities. In return, they may offer employees a severance package. A separation agreement means that both parties are ending the working relationship in good faith and won’t hold each other responsible for anything that transpired in the course of the relationship.

The employer is not required by federal or state law to use an Employee Termination Letter. However, many employers choose to do so as a matter of company policy. This rule might even be a part of the company's bylaws, so regardless of who is in charge, they will have to abide by this rule.

There are no laws that mandate employers to notify employees before presenting the termination letter. The only exception may be if the employee is in a union and there’s a separate union agreement. Or, if it is stated otherwise in the contract. Also, in the case of larger companies that have over 100 employees, laying off workers may require a 60-day notice. Most of these companies would just send the employees home and continue to pay them for the period.

Even though an employer can fire any employee at will, there are certain limitations to this rule.
In the spirit of equal protection, a company is not permitted to terminate employees based on race, gender, age, disability, sexual orientation, religion, national heritage, or pregnancy status.
These are the only circumstances where an employee can take an employer to court for wrongful termination.

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Applicable to all 50 states
Applicable to all 50 states

Our documents are vetted by lawyers and are applicable to all 50 states.