How to Write a Termination Letter to an Employee with 9 Templates
Table of Contents
An employee termination letter is considered one of HR management’s most sensitive issues, which needs to be well-drafted. A termination letter that acknowledges clear communication and professionalism. In this article, we will cover how an employee termination letter format should be, why it matters, and provide ready-to-use templates for various circumstances. Whether it’s an end-of-employment letter, a firing letter template, or a notice of termination, the formats provided here will assist you.
What is a Termination Letter?
An employer writes the termination letter to the employee. It mentions the reason for termination, the last day of work, and compensation plans. In contrast to verbal discussions, it serves as a written document that ensures compliance and helps prevent future conflicts.
Basic Termination Letter Format
A termination letter to employee format acts as a formal document, which outlines some of the important details. These details include legal requirements for ending employment in a clear and professional manner. This section shows a basic termination letter format, helping HR professionals ensure respectful communication and organizations to stay compliant.
Get Termination Letter To Employee Format
Sample of Termination Letter to Employee
Date: 15/09/2025
Employee Name: Mr. Karan Das
Designation: Sales Executive
Subject: Termination of Employment
Dear Mr. Karan Das
We are notifying you that your employment in Xenzha Pvt. Ltd. will terminate on [Last Working Day]. This is an end-of-employment letter being issued in accordance with company policy. Your Final settlement, pending dues, and relieving documents will be delivered to you as per the notice period.
Before your final working day, please ensure the handover process
We hope that you have future opportunities.
Sincerely,
Mr. Vasu Pankhaniya
Sales Manager
Tips for Writing a Basic Termination Letter to Employee
Here are some tips to write a letter of termination that is clear, professional, and legally safe:
- Keep It Clear and ConciseAvoid unnecessary details, and next steps like handover and settlement to ensure there’s no ambiguity.
- Maintain a Professional ToneEven though it’s a sensitive matter, the tone should remain respectful and neutral. This helps safeguard the company’s reputation and avoids sounding harsh.
- Include Essential DetailsAlways mention the last working day, settlement/dues, return of company assets, and documentation. This ensures compliance with company policies and labor laws.
9 Best Job Termination Application Samples for Employees (Free)
Provided below are various templates for employee termination letters, each meticulously crafted to suit distinct and specific circumstances. These templates offer comprehensive guidance, ensuring that all necessary legal and procedural requirements are met while maintaining a professional and respectful tone during what can be a challenging process for both the employer and the departing employee.
Sample 1: Format of Termination Letter to Employee for Unacceptable Behaviour
A formal letter of termination is issued when an employee repeatedly engages in misconduct despite prior warnings. It stresses the impact of their actions on workplace harmony and mandates immediate offboarding. This avoids any legal liability, especially when 46% of plaintiffs in wrongful termination cases get compensation from their employers.
Date: [DD/MM/YYYY]
Employee Name: [ ]
Designation: [].
Subject: Letter of Termination of Employee for Misconduct
Dear [Employee Name],
This letter is being issued due to unacceptable behavior on your part, which has continued despite previous warnings. As a result, we have no choice but to terminate your employment, as your actions have negatively impacted the workplace atmosphere. You are required to complete all offboarding procedures promptly..
Sincerely,
[Manager’s Name]
[Designation]
Sample 2: Letter of Termination for Non-Performance
This letter is used when an employee fails to show improvement after consistent feedback and reviews. It communicates the decision to terminate due to underperformance and the process for employee exit.
Date: [DD/MM/YYYY]
Employee Name: [ ]
Designation: []
Subject: Non-performance Termination.
Dear [Employee Name],
This letter addresses your poor performance following multiple reviews and feedback sessions. Due to the lack of noticeable improvement, we must unfortunately end your employment as of [Date].
Your final dues and employee exit process information, along with offboarding process requirements, will be conveyed to you.
Sincerely,
[Manager’s Name]
[Designation]
Sample 3: Immediate Termination of Employee
This is a format of a letter that you can use to inform an employee of termination with immediate effect. It provides information on violations of policies and clarifies doubts on wrongful termination.
Subject: Immediate Termination Notice
Dear [Employee Name],
We are very sorry to inform you that with this notice, you are relieved of your duties. This letter is given to you because you have violated company policies, and services cannot be continued. Final settlement information will be provided on its own.
Sincerely,
[Manager’s Name]
[Designation]
Sample 4: Contract Termination Letter Format
A notice for termination due to the end of the contract in which the employee was bound. Due to the completion of the agreement tenure of the project, the letter of termination is given.
Date: [DD/MM/YYYY]
Employee Name: [ ]
Designation: []
Subject: Contract Termination Notice
Dear [Employee Name],
This letter serves as notice that your employment contract dated [Date] with [Company Name] will be discontinued effective [Date]. This is in accordance with the terms outlined in the agreement.
Please reach out to us to start the exit process.
Sincerely,
[Manager’s Name]
[Designation]
Sample 5: Termination Email Sample for Poor Performance
This is an email format termination highlighting performance-related issues and standards despite constant training. It outlines the employee offboarding process and handover.
Date: [DD/MM/YYYY]
Employee Name: [ ]
Designation: []
Subject: Notice of Employment Termination
Dear [Employee Name],
This is the termination mail based on your performance. Despite receiving training, your performance has not met the company’s benchmarks. Therefore, on [Date], you will be terminated.
We are asking you to hand it over at the time of your departure.
Sincerely,
[Manager’s Name]
[Designation]
Sample 6: Termination Sample Letter for Employee Benefits Change
A letter issued during organizational restructuring or policy changes that necessitate job discontinuation. It states that termination is effective from a given date and includes the notice period.
Date: [DD/MM/YYYY]
Employee Name: [ ]
Designation: []
Subject: Discontinuation of Employment Due to Policy Change
Dear [Employee Name],
We have to terminate your employment with [Company Name] because of restructuring and modifications in the benefits and operating policies of the company. This sample of a discontinuity letter becomes effective: [Date]
Sincerely,
[Manager’s Name]
[Designation]
Sample 7: Mutual Termination of Employment Agreement
A separation letter confirming mutual agreement between the employer and employee to end the relationship. It clarifies that no further claims will be raised by either party, along with employee exit process details.
Date: [DD/MM/YYYY]
Employee Name: [ ]
Designation: []
Subject: Mutual Separation Agreement
Dear [Employee Name],
This letter of separation confirms that you agreed, and the company has decided to terminate the employment relationship mutually and as of [Date]. Both parties accept that it is not being claimed that any other claims are going to be raised.
We will provide information about the settlement in this way.
Sincerely,
[Manager’s Name]
[Designation]
How to Write a Termination Letter to an Employee?
Writing a letter of termination requires a balance of professionalism, clarity, and compliance with company policy. The goal is to communicate the decision respectfully while covering all necessary details. Here’s how you can structure it:
Write on the Official Company Letterhead
A termination letter is a formal document by the HR department and, therefore, should be written on the official letterhead of the company. This provides credibility and makes the letter appear as an official communication of the organization.
Give the Cause, without the Use of Harsh Language
Workers need to understand the reason for their layoff, but this should be done professionally and neutrally. Use direct communication and factual information as much as possible to reduce the conflict.
State the Final Working Day and the Settlement
Always remember to state the last working day of the employee as well as information about salary, benefits, or payments, etc., to avoid confusion. This ensures clarity and avoids future settlement disputes.
Add the Directions on the Exit Policy
Returning company assets, clearing accounts, or participating in exit interviews are usual in the offboarding process. Clearly stating them will enable employees to easily go through the formalities and safeguard the company’s interests.
Be Professional and Respectful
The tone must also be polite and respectful, even in the process of ending employment. This protects your company’s name while remaining fair and professional to the staff.
What Essentials Must be Covered in the Termination Letter?
When drafting an end-of-employment communication, certain elements are crucial to ensure clarity, compliance, and professionalism. Including these essentials avoids misunderstandings, ensures smooth offboarding, and safeguards both the employer and the employee.
| Feature | Description |
|---|---|
| Official Letterhead | Using the company’s official stationery adds authenticity and makes the communication legally valid. |
| Reason for Separation | Clearly state the cause of discontinuation without harsh language. |
| Final Working Day | Mention the employee’s last day to avoid ambiguity and help in transition planning. |
| Settlement & Benefits | Provide details of salary, pending dues, benefits, or gratuity to ensure transparency. |
| Exit Policy Instructions | Outline steps such as asset handover, account clearance, or exit interviews to ensure a smooth offboarding process. |
| Professional Tone | Maintain respect and professionalism throughout, protecting the brand’s reputation while keeping the message firm. |
Termination Letter vs Resignation Letter: Key Differences
Here are the key differences between a termination and a resignation letter.
| Aspect | Termination Letter | Resignation Letter |
|---|---|---|
| Who initiates | Organization/employer | Employee |
| Reason | Poor performance, misconduct, breach of policy, redundancy, contract ending, etc. | Personal reasons, career change, relocation, health, better opportunity, etc. |
| Notice | May be with or without notice, depending on cause, contract, or legal obligations. | Usually, the requirement is to give notice based on the employment contract or policy. |
| Documentation | Formal document issued by employer; outlines reason, last working day, benefits, severance, any company-property returns, etc. | Usually, a resignation notice or letter from the employee speaks to the intent and notice period. Less “legal risk” for the employer if done properly. |
| Impact on benefits/severance | It can affect eligibility depending on the cause; employer action can trigger severance or not, depending on laws or policy. | Employee-initiated exits may have fewer severance requirements, depending on company policy or contract. |
Acceptance of Termination by Employee
Sometimes, employees may respond with an acknowledgment of termination. Sometimes, in response to receiving a termination notice, employees may provide an acknowledgment of their termination. This acknowledgment can take various forms, such as a formal written letter, an email, or even a verbal confirmation, depending on the company’s policies and the specific circumstances of the termination. Here’s a format:
Date: [DD/MM/YYYY]
Employee Name: [ ]
Designation: []
Subject: Acknowledgment of Termination
Dear [Manager’s Name],
I acknowledge receipt of the termination letter dated [Date] and accept the decision. I will complete all formalities as per company policy.
Sincerely,
[Employee’s Name]
Final Thoughts
An employee termination letter is essential in any organization. The letter clarifies that the organization may terminate employment without confusion, in compliance with labor laws, and in accordance with social culture, while maintaining a touch of professionalism. This letter is a formal instrument of communication with multiple purposes, protecting the company’s interest as well as that of the person being terminated.
What is the Difference between a Firing Letter and a Termination Letter?
Usually, a firing letter relates to immediate termination because of disciplinary reasons, while a termination letter could also involve non-performance, completion of contract, or restructuring.
Can Termination be Done over Email?
Yes, it can indeed be done by email, but one must surely follow up by handing in the official letter of termination of employment for compliance reasons.
What Should be Stated in an Employee Termination Letter?
The letter of termination shall state the grounds for termination, the last official day of work, details of payments, and handover instructions.
Will I Get an Experience Letter after Termination?
It depends on the reason for termination and the company policy. In cases of “for cause” termination (e.g., misconduct), companies may refuse an experience letter. However, if the termination is due to restructuring, redundancy, or other reasons unrelated to performance or behavior, many companies will provide a letter of experience.
Can We Get a Relieving Letter after Termination?
A relieving letter is typically issued when an employee voluntarily resigns and has completed their notice period, indicating they have been relieved of their duties. In the case of termination, a relieving letter is generally not provided. Instead, you would likely receive a letter of termination, which formally states the end of your employment.
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