Terminating an employee can be frustrating yet emotional at the same time. You also have to keep in mind that you should terminate an employee on legal grounds as legal proceedings against the wrong termination can be very expensive not only for the terminated employee but for you as the employer as well. This is why you should always remember to make your reasons for terminating an employee valid. Remember that having valid documentations such as employee performance evaluation forms can help make your reason more valid. Plus, you should also officially let the employee know that he is being terminated through a termination letter. A termination letter is an official business letter that would let the employee know the reasons that led to the decision of termination.
If you are in need of a termination guideline, then you have come to the right website! We will be presenting to you a few simple guidelines that you need to put in mind when it comes to writing a termination a letter of termination. We also have a few sample letters that you can refer that will definitely give you a better perspective as to what a termination letter looks like, as well as what it should contain.
Termination Letter Template in PDF
Sample Termination Notice Letter
Letter of Termination of Employment in DOC
Employment Termination Letter with Cause
Confidential Termination Letter
What Is a Termination Letter?
Before we start discussing the guidelines you need to follow regarding writing termination letters, let us define what is a termination letter. A termination letter will give the employee being terminated from the company a detailed reason as to why he/she is being terminated from the company.
What are the most acceptable reasons for being terminated from the workplace?
- Attendance issues
- Criminal behavior (in the workplace)
- Discriminatory actions such as sexual harassment
- Physical violence
- Other valid reason that affects impacts the productivity, the health of the employees, and the overall reputation of the company
Quick tip: Whatever the reason of a termination may be, always secure a copy of documented proof that would give support to the reason for termination. Such documentation will include employee evaluation forms, coaching forms, or counseling forms. These documents will be useful during termination meetings or performance deliberations. Whatever was discussed during the meeting will be summarized in the termination letter.
How to Write a Termination Letter
There will always be times when terminating an employee or a few employees is a necessity. With termination comes a termination letter that would explain every single detail about the termination. These letters also help to protect you from any questions and legal actions that may be taken against you and your company.
First things first, you have to make sure that you have all the necessary information you need. All of this information will be included in the letter. Remember that the more detailed your termination letter is, it will be easier for the employee to understand the circumstances that led to the termination.
The basic information will include the following:
- Name/s of the employee/s being terminated
- Designation or position in the company
- Name of the company
- Dates – the date when the letter was written, the date when the termination will be effective, and other important dates that are relevant to the termination process
Reason for Termination
It is important that you give the terminated employee/s peace of mind before they leave the company. So it is important that you give them all the details that led up to the termination. You may include the documents that will serve as solid proof for the termination. It would also be a good idea to state whether they were given a warning through warning letters and other forms of notices.
Ask to Return Company Property
If you have issued gadgets and other company items to the employee, politely ask him/her to return said items if they were not part of the company perks. Ask them to also clear out their stations and workstation computers of any personal files on or before the effective date of termination.
Unused Vacation Leaves
If accrued vacation time is one of the benefits that your employees get upon employment, you are obligated to pay them for the unused leaves they have. However, these will all be based on what the company job contract states. Make sure you review the contract.
Getting the Final Paycheck
Make sure you let the employee know how they will receive their final paycheck—mail, in person, or deposit. Include all the details that they need to do before the final paycheck will be released.
Insurance and Other Benefits
If you issue your employee benefits such as insurance and retirement savings, let them know how these will be handled. Provide them the necessary information about their insurance such as if it will continue after termination or if it is terminable with employee termination or resignation. It is also important to give them details as to where their savings and investments are. By giving them these information, you definitely make the transition smoother and easier for you and the employee.
Sample Employee Termination Letter
Letter of Termination of Employment Contract
Contract Termination Letter Example
Termination Letter for Poor Performance
Terminating an employee will always be a difficult thing to do no matter what the reason for termination is. So if you are at a loss for words about what to say when it comes to terminating an employee, keep it classy and professional with a little help from the sample termination letters for the workplace we have in this article. Just like resignation letter etiquette, never use your termination letter as a tool where you will vent your negative feedback about the employee. Never make it rude. Keep everything pofessional and polished.
After checking out the sample termination letters and making your own termination letter, make sure to make two copies—keep one on file and one to hand out to your employee. If you want to, you may opt to add a space where the employee can affix their signature as a means of acknowledging the termination letter.
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