An employer never hires an employee intending to fire them later.
But sometimes circumstances force an employer to fire a worker. This
is a serious task that businesses should do carefully. The termination
letter is an important document not only for the termination meeting
but also for legal purposes if the employee files a wrongful termination
lawsuit. Because it is important document, most employers start with
an employment termination letter sample.
Importance of an employment termination letter
The termination letter is not like any other document. If you are
the employer, you must do it right. A well done letter speaks volumes
about your sense of justice and professionalism. It also can prevent
you from turning up on the wrong end of a wrongful termination lawsuit.
Guidelines for an employment termination
The most common reasons for firing an employee are underperformance,
bad conduct and insubordination. The employer should handle the termination
letter the same way in all three cases. However, the minor details
of the procedure may vary.
There are three major items that you, the employer, must remember
when terminating an employee. First, you must consider the legal
issues involved. Second, include any extra payments and benefits
that you own the employee. List the severance package if you offer
one. Finally, make sure you explain the reasons for the termination.
If you follow a proper procedure, you will not surprise the employee
with any of this. You should have given them plenty of feedback in
your verbal and written warnings.
Also, make sure you always have enough evidence and data to support
your decision. As an employer or manager, keep a record of your experiences
with this employee. Their file should list out their repeat transgressions
with dates and the disciplinary action the manager had to take. Finally
remember to remain professional in both your letter and in the termination
Employment termination letter sample – Template
Let us take a look at the template of an employment termination
letter sample. You can create variations depending on the circumstances
and the legal issues. The legality may vary from country to country
so keep this in mind. The template of an employment termination letter
sample is given below.
Dear Mr. /Ms. (whichever applicable)
In reference to our prior meeting held on (specify the date of the
meeting /meetings), I hereby state that your service with (specify
the name of your company) is terminated. The termination will be
effective from (mention the effective date of the termination).
According to our previous discussion, the circumstances leading
to this decision are stated below:
(Here, mention all the reasons for the termination as well as warnings
you gave to the employee)
(Specify all the things the employee has to return, all the matters
that need to be settled before he /she leaves, date of leaving, notice
period, appealing procedures, etc.)
(Specify enclosures, if any)
N.B.: Please sign and return this letter to confirm its receipt
and that of the enclosure (if any).
without fear of making mistakes. Our recommended procedure.