A termination email notifies an employee that they will be dismissed from their current position. This email discusses the reasons for the employee’s involuntary departure, the next steps they need to follow, and any benefits or compensation they will receive.
Though most companies are not compelled to issue termination letters/emails, they are significant as they help your organization retain a decent reputation, show professionalism, and provide a record of events for legal reasons.
What is a termination letter?
A termination letter is an official notice given by the employer to the employee to inform them of their dismissal from the job. It is a formal document that communicates the decision of an employer to terminate an employee’s employment contract. This letter typically includes the reasons for termination, the effective date of termination, and any details regarding severance pay or benefits.
A termination letter serves as a record of the employer’s decision to terminate the employment relationship and provides the terminated employee with important information about the terms of their departure. It is also a legal document that can be used as evidence in any disputes that may arise between the employer and the terminated employee.
Significance of Termination Letter
The following reasons state the importance of a termination letter:
- It is a tool used by employers to justify the termination of an employee. It makes it easier for the employee to know the claims and makes it difficult for the employer to modify their narrative.
- It serves as a former notice from the employer’s side and highlights their professionalism.
- It also acts as legal proof for any future references.
- It also helps in ending the relationship with an employee in an amicable manner.
- It gives the employee a fair amount of time and compensation to handle their unemployment situation.
How to Write a Termination Letter to an Employee?
- Always start with the date of drafting the letter, it can be mentioned at either side.
- Use salutations like ‘Dear’ and include the entire name of the employee.
- Be crisp and clear that the company has terminated the services of the employee.
- Remember to clearly specify the date from when the termination comes into effect.
- List out all the reasons that led to the termination, and include evidence to support the claims if possible.
- Clearly explain the compensations and benefits like provident fund, pension, leave encashment etc., that the employee might be entitled to.
- Request the employee to return the assets and if they are in the possession of company provided accommodation give them ample amount of time to vacate it.
- Remind the employees of the non-disclosure and non-competing agreements that continue to stay in effect.
- Include the HR contact information to help in clarifying all the queries.
- Use a professional tone throughout the letter and conclude it with good wishes, and the closing salutations can be ‘Best Regards’ or ‘Sincerely’.
18 Employee Termination Letter Samples
Moreover, writing employees a termination email/letter is a more humane and respectful manner of dismissing them. Here is a termination letter template to help you draft yours:
1. Termination Email Sample with Reason
This sample is about termination emails that explain the reason for ending an employee’s job. The email should include the date and reason for termination, and details about severance pay, benefits, and any remaining duties. Employers must provide a clear and professional explanation to avoid legal issues.
Here is how the email should be written for this sample:
Subject: Termination of Employment
Hi [Name of Employee],
We regret to inform you that your employment with us is being terminated, effective immediately (or add date). The following are the reasons for your dismissal:
- Reason 1
- Reason 2
- Reason 3
Please return any business property that you have under your possession. The issuance of your final payment would be delayed if you delay or fail to do so.
Any severance payments will be given in accordance with the company’s policies.
If you have any unpaid leaves remaining, they will be computed and paid according to the company’s policies. You can reach the HR department if you have any queries or concerns.
Regards,
[Name]
[Title]
2. Termination Email Sample for Poor Performance
The termination email explains poor performance and what steps were taken to address it, but ultimately they were unsuccessful. It must be written professionally and follow legal and company policies. Relevant information about the final paycheck and benefits should be provided.
Here is how a sample termination letter should be written for poor performance:
Subject: Employee Termination
Hi [Name of the employee],
We acknowledge all the efforts that you’ve put into your job role as (Job Title). Unfortunately, the results did not meet our expectations. We regret to inform you that your employment with (firm name) stands terminated effective immediately as of (date specified).
Please do not forget to return the business assets under your possession. If you have any unpaid leaves remaining, they will be paid according to the company’s policies. These documents will also be mailed to your home address. Feel free to reach out to the HR department if you have any queries.
We wish you the best of luck for your future endeavors.
Regards,
[Name of the Manager]
HR Department
3. Employee Termination Letter Sample for Failing Business Expectations
If an employee fails to meet corporate standards, they may be terminated, and the employer should explain the reasons in a clear, objective manner in the termination email. The email should also mention any relevant company policies and offer guidance on appealing the decision or finding new employment.
Below is the sample of the termination of an employee failing to meet corporate standards:
Subject: Termination of Employment
Hi [Name of the employee],
We sincerely regret to inform you that your employment with our company is terminated from 12th April, 2023. We made this decision after you constantly failed to meet the business expectations.
From 12th April, you will no longer be eligible for any compensation or benefits associated with your previous job role. Please return all the company assets that are under your possession by 7 pm on 12th April to our HR office.
You are entitled to your salary until 12th April and you will be compensated for your remaining vacation days. We will also be providing severance pay amounting to 3 monthly salaries.
You are requested to delete any information about our customers, employees or other stakeholders stored in any of your personal devices as you have signed a non-disclosure agreement.
Please feel free to reach me or anyone in the HR department for further questions or clarifications.
All the best for your future endeavors!
Regards,
Mohini Rathod,
HR department.
4. Termination Email Sample Without Cause
The email informs that the employee is being terminated without cause. This means the employer is ending the relationship for reasons other than performance or behavior, such as downsizing or restructuring. The email must include effective date, severance, future actions, and be respectful. It can be a difficult experience for the employee.
Here is the sample email to inform about the termination of the employee:
Subject: Termination of Employment
Hi [Name of Employee],
We regret to inform you that your employment with our company will end on October 30, 2023. This decision is permanent.
You will receive your final paycheck and payment of your remaining leaves today. You will also receive your severance payment amounting to 2 monthly salaries today.
Your healthcare benefits plan will be effective for another 90 days.
You are requested to return the company assets before the end of the day. Also, keep in mind about the confidentiality agreement that you have signed.
If you have any further queries feel free to reach out to the HR Department.
All the best for your future!
Regards,
Belle Peters,
HR department.
5. Termination Email Sample Due to company economic condition
This is a formal email from an employer informing an employee that their employment will be terminated due to economic conditions. It explains that the company is reducing its workforce and unfortunately the employee’s position has been eliminated. It is important for companies to communicate their reasons for termination clearly and respectfully.
Below is the sample email to write for the termination of employee due to economic conditions:
Subject: Termination of Employment
Hi [Name of Employee],
We regret to inform you that your employment with our company will end on December 31, 2023. This decision is final and will not be modified.
You have been terminated as the recent economic conditions have led us to reduce 20% of our workforce, your position is a part of this and has been eliminated.
You will receive your final paycheck and payment of your remaining leave on your last working day. You are also entitled for a severance payment amounting to 2 monthly salaries.
Your healthcare benefit will continue to be effective for 90 days after your termination takes effect.
You are requested not to disclose any confidential information as you have signed non-disclosure agreements.
You are requested to return all the company assets under your possession on your last working day.
If you have any further questions, feel free to contact the HR department.
We wish you the best of luck!
Regards,
Backer Adams,
HR department.
6.Termination Letter Sample of Probationary Employment
A probationary employee termination letter is a formal document that an employer uses to tell a worker that their job is ending while they are still on probation. This letter is commonly sent if somehow the employee has failed to meet the employer’s expectations during the probation period or if the employer has opted to end employment for another reason.
Here is a sample probationary employee termination letter:
[Your Company Letterhead]
[Date]
[Employee Name]
[Employee Address]
[City, State ZIP Code]
Subject: Termination of Probationary Employment Notice
Dear [Employee Name],
We are sorry to inform you that your employment with [Your Company Name] will be terminated effective [Termination Date]. You were hired on a probationary basis for [Probationary Term], as was explained to you at the time.
Despite our efforts to monitor your probationary performance, you have not satisfied the basic standards for your position. So, we cannot hire you permanently.
Your final paycheck, including payment for any outstanding leave, will be sent to you via [preferred payment method] within [number of days required by law].
All corporate property, such as your employee ID card, keys, and any assigned equipment, must be returned upon termination of employment.
We appreciate everything you did while at [Your Company Name] and hope the best for you in the future.
Sincerely,
[Your Name]
[Your Title]
[Your Company Name]
7. Immediate Termination Sample Letter for Employees
When an employee’s employment is being terminated immediately and without further notice, the employer will typically utilize a letter to convey this news. This degree of dismissal is usually reserved for the worst corporate policy infractions or actions that pose a substantial risk to the company, its employees, or its consumers.
Here is a sample immediate termination letter:
[Company Name]
[Street Address]
[City, State Pin Code]
Subject: Notification of Immediate Termination
Dear [Employee Name],
It is with deep regret that I inform you of your immediate termination from [Business Name]. This decision has been made due to [insert reason for termination, such as violation of company policy, theft, harassment, etc.].
Please be aware that your immediate termination is based on a serious violation of company policy, and is therefore without notice or severance pay. You will be paid for any hours you worked up until the time you were fired. You will also get paid for any vacation or sick time you have earned, as the law requires.
Please return any company property in your possession, such as keys, badges, and equipment, to your manager before leaving the premises.
We wish you success in all of your upcoming pursuits.
Sincerely,
[Your Name]
[Your Title]
[Company Name]
8. Employee Termination Letter Sample for Restaurant Employee
An employee termination sample for a restaurant employee is a written document that informs the employee that their employment has been terminated. In order to prevent any ambiguity or misunderstanding, it is crucial to include specific data, such as the cause for termination and the effective date.
Here is an example of an employee termination letter for a restaurant employee:
[Restaurant Letterhead]
[Date]
[Employee Name]
[Employee Address]
[City, State ZIP Code]
Subject: Notice of Termination of Employment at [Restaurant Name] – [Termination Date]
Dear [Employee Name],
Your employment with [Restaurant Name] will end as of [Termination Date], and we apologize for the inconvenience. After careful consideration, the management has decided that your employment with us is no longer suitable due to [Reason for Termination].
Your due payment will be mailed to the address we have on file for you within [time frame]. This will cover any unpaid earnings, benefits, and vacation time. You must also return any and all business property, including uniforms, keys, and company-issued tools and equipment.
We admire everything that you’ve accomplished for [Restaurant Name] and are writing this letter to express our gratitude. We hope that your future initiatives be successful.
Please do not hesitate to reach us if you have any queries or concerns about this judgement.
[Restaurant Manager Name]
[Restaurant Manager Title]
9. Termination Sample Letter for Employee Benefits Change
A termination letter of employee benefits is a letter that informs an employee that their benefits are ending or changing. This letter is issued to employees when their employment ends or their benefits change due to a change in their status.
A sample termination letter of employee benefits might look something like this:
[Company Letterhead]
[Date]
[Employee Name]
[Employee Address]
[City, State ZIP Code]
Subject: Notification of Termination of Benefits
Dear [Employee Name],
We regret to inform you that due to [Reason for Termination of Benefits], your [Type of Benefit] benefits with our company will be terminated effective [Termination Date].
As per our company policy, you will receive [Details of any Severance or Continuation of Benefits]. The Consolidated Omnibus Budget Reconciliation Act may allow you to keep your benefits (COBRA). You will be provided with additional information regarding COBRA in a separate mailing.
We understand that this is going to tough for you. We promise to offer you with the help and resources you need during this transition.
Please contact our HR department at [HR Department Contact Information] with any benefits or termination inquiries.
Sincerely,
[Company Representative Name]
[Company Representative Title]
10. Sample Termination Letter for Employee Separation
A formal letter notifying an employee of their termination is an employee termination letter. The letter will normally outline the termination’s rationale, the termination’s effective date, and the employee’s final pay, benefits, and other pertinent information.
Here is an example of an employee termination letter:
[Your Company Letterhead]
[Date]
[Employee Name]
[Employee Address]
[City, State ZIP Code]
Subject: Notice of Termination for Separation
Dear [Employee Name],
I feel sorry to inform you that your employment with [Company Name] will be terminated, effective [Termination Date]. The reason for your termination is [Reason for Termination], which was discussed with you on [Date of Discussion] during our meeting.
As per company policy, you will be paid for any remaining wages or vacation time owed to you. Your final paycheck will be mailed to the address we have on file for you within [time period]. This will include any overdue earnings and/or benefits.
Also, you will be paid out for any vacation time that you have earned but have yet to utilize.
You will no longer have access to any company records, systems, or property following your termination. If you have any corporate property, such as uniforms, keys, or tools, please return them to the appropriate people.
Please accept our sincere appreciation for your time spent working for [Business Name]. We hope that your future initiatives be successful.
Sincerely,
[Your Name]
[Your Title]
[Company Name]
11. Sample Employee Termination Letter Due to Prolonged Absence
An employee termination letter due to prolonged absence is a written document that outlines the decision to terminate an employee’s employment due to an extended period of absence without adequate justification or communication with the employer. Under these situations, the employer can fired the employee for failing to fulfill their duties. A sample termination letter due to prolonged absence might look something like this:
[Company Letterhead]
[Date]
[Employee Name]
[Employee Address]
[City, State ZIP Code]
Subject: Termination of Employment Notice for Prolonged Absence
Dear [Employee Name],
We’re sorry to inform you that you will no no longer work for [Company Name] as of [Termination Date]. The reason for your termination is due to your prolonged and unexplained absence from work. You have not answered our calls, emails, or texts despite multiple attempts to contact you and ask about your status. This has severely hindered our activities and left us in a precarious position.
As per company policy, you will be paid for any remaining wages or vacation time owed to you. Your final paycheck will be mailed to the address we have on file for you within [time period]. This will include any overdue earnings and/or benefits.
You will no longer be entitled to the company’s systems, equipment, or information upon termination. Return any corporate property, including tools and equipment.
You will be much missed at [Company Name], and we appreciate your time here.
Sincerely,
[Manager Name]
[Manager Title]
12. Letter of Termination of Employment for Sales Employee
An employer’s decision to fire a salesperson should be supported by legitimate grounds like poor performance, breaking corporate rules, or other problems with the employee’s conduct or behavior because salespeople are frequently in charge of generating income for the firm.
Here’s a sample termination letter for a sales employee:
[Company Letterhead]
[Date]
[Employee Name]
[Employee Address]
[City, State ZIP Code]
Subject: Notice of Termination
Dear [Employee Name],
We regret to notify you that [Company Name] has decided to terminate your employment effective [Termination Date]. After reviewing your performance and conduct, we have decided to terminate your job.
[Describe the termination, such as “Despite repeated warnings and attempts to improve your sales performance, you have failed to fulfill your sales targets for the past six months.” “You broke the company’s attendance and punctuality regulations, disrupting the team’s operation.”]
As per company policy, you will be paid for any remaining wages or vacation time owed to you. Your final paycheck, including any unpaid salary and benefits, will be mailed to you within [timeframe].
You’ll also receive any unused vacation time, per business policy.
Please note that you will no longer have access to the company’s systems, equipment, or information after termination. We ask that you return any company property in your possession, including sales materials, client lists, or other company-owned resources.
Thank you for your service to [Company Name] and best wishes for your future.
Sincerely,
[Manager Name]
[Manager Title]
13. Sample Letter for Employee Termination Due to Redundancy
When an employee gets released because of redundancy, it means that the company no longer needs their position because of changes in business needs, reorganization, or other things that are out of the employee’s control. In such circ*mstances, it’s crucial to speak with the employee clearly and empathetically and offer assistance and tools to help them find new work.
Here’s a sample letter for an employee termination due to redundancy:
[Company Letterhead]
[Date]
[Employee Name]
[Employee Address]
[City, State ZIP Code]
Subject: Letter of Termination Due to Redundancy
Dear [Employee Name],
We’re sorry to tell you that your job with [Company Name] will end due to redundancy on [Termination Date]. The decision to eliminate your position was based on the company’s current and future requirements. It is unrelated to how successfully you performed your duties or how you conducted yourself in any way.
We know this news may upset you, but we pledge to make the adjustment as seamless as possible. We will give you severance money and any unused vacation time as part of a legitimate redundancy package. If needed, we may give a reference letter for your job quest.
If you have questions concerning your termination or redundancy package, contact HR. Next week, we will have a redundancy support session to help you with job looking, resume writing, and other career subjects.
We appreciate your efforts to [Company Name] throughout your employment. We hope you discover new and rewarding possibilities.
Sincerely,
[Manager Name]
[Manager Title]
14. Basic Termination Notice Sample Letter
A standard termination notice is a letter that formally informs a worker that his or her employment will be ending soon. Any pertinent information regarding the employee’s final salary, perks, or business property should also be included in a letter of termination.
Here’s a sample termination letter with reasoning:
[Company Letterhead]
[Date]
[Employee Name]
[Employee Address]
[City, State ZIP Code]
Subject: Termination letter for employment
Dear [Employee Name],
We regretfully inform you that your employment with [Company Name] will be terminated effective [Termination Date]. After careful analysis of your work and attitude, we have determined that terminating your job is in the company’s best interests.
[Explain the reason(s) for the termination, for example: “Despite your efforts to enhance your work, your performance has not met the company’s expectations. [Or, “You have violated company policy regarding [insert specific policy], which the company cannot tolerate.”]
Please feel free to get in touch with us at any time if you have any concerns.
Sincerely,
[Manager Name]
[Manager Title]
15. Sample Employee Termination Letter for Business Needs
Terminating an employee for business needs typically refers to an employer needing to cut costs, downsize, or restructure the company. In such circ*mstances, the company’s strategic interests and financial position determine an employee’s termination, not performance. Here’s a sample termination letter for an employee terminated for business needs:
[Company Letterhead]
[Date]
[Employee Name]
[Employee Address]
[City, State ZIP Code]
Subject: Termination Letter due to Business Needs
Dear [Employee Name],
We regretfully inform you that your employment with [Company Name] will be terminated effective [Termination Date]. Due to commercial demands, we must make tough decisions to reorganize and simplify. We’ve decided to eliminate your position.
Please be assured that this decision is not based on your performance or conduct but on our business needs. We appreciate your work for our firm and will offer a favorable reference if needed.
We thank you again for your efforts to [Company Name] and wish you the best in your future endeavors.
Sincerely,
[Manager Name]
[Manager Title]
16. Sample Employee Termination Letter for No Reason
A company may decide to fire an employee without giving a reason. This is possible if the company operates in an “at-will” employment status or if the worker is still in the “trial” phase of their employment. The employer is not required by law to disclose a cause for the termination in such situations. Hence, in the case of termination, race, gender, and religion must be excluded.
Here’s a sample termination letter for an employee without reason:
[Company Letterhead]
[Date]
[Employee Name]
[Employee Address]
[City, State ZIP Code]
Subject: Important Notice: Termination of Employment
Dear [Employee Name],
It is to inform you that your employment with [Company Name] will be terminated effective [Termination Date]. All the help you gave us while you were here is greatly appreciated. We hope that your future activities be fruitful.
Don’t be reluctant to get in touch with us if you have any queries or concerns.
Sincerely,
[Manager Name]
[Manager Title]
17. Sample Employee Termination Letter for Infringement of Company Rules
Terminating an employee for infringing company rules is a serious decision that should be taken with careful consideration. If an employee is being let go, a formal termination letter should explain why in addition to other pertinent details like the termination’s effective date and any severance pay the employee is due.
Here is a sample termination letter for an employee who has infringed company rules:
[Company Letterhead]
[Date]
[Employee Name]
[Employee Address]
[City, State ZIP Code]
Subject: Termination due to Infringement of Company Rules
Dear [Employee Name],
It is with regret that we inform you that your employment with [Company Name] will be terminated effective [Termination Date]. This decision has been made due to your infringement of the company’s rules and policies.
We take all forms of misconduct seriously and your actions have violated the company’s expectations of appropriate behavior. The infringement has caused a breach of confidence that cannot be sustained, according to our investigation.
We acknowledge your commitment to [Company Name] as well as wishing you the greatest success in your future work.
Sincerely,
[Manager Name]
[Manager Title]
18. Mutual Termination of Employment Agreement
Mutual termination happens when both parties agree to discontinue the job relationship. The employee’s personal situation, company demands, or desire to pursue other options may cause this.
Here’s a sample letter that an employer can use to communicate a mutual termination agreement to an employee:
[Company Letterhead]
[Date]
[Employee Name]
[Employee Address]
[City, State ZIP Code]
Subject: Mutual Termination Letter
Dear [Employee Name],
We regret to tell you of our employment termination. Yet, this choice was mutually agreed upon.
As per our discussion, we have agreed to terminate your employment effective [Termination Date]. It’s in your and the company’s best interests.
You will receive [severance salary, unused vacation time, or other perks] according to our mutual agreement. The company will also provide an impartial reference.
You will receive a letter from us that verifies your termination and explains the severance package you are due. If relevant, we will also give you a COBRA notice and any other papers required.
We appreciate your contributions at [Company Name] and wish you well in your future pursuits.
Sincerely,
[Manager Name]
[Manager Title]
Important Legal Considerations for Employers When Terminating Employees in India
Employee termination is a delicate matter that requires tactful handling. When firing an employee in India, businesses must adhere to a specific set of regulations. Here are six important legalities to consider:
1.Providing notice:
Employers must provide written notice to the employee before termination. The notice period should be mentioned in the employment contract and should comply with the terms of the contract or the relevant labour laws.
2.Payment of dues:
Employers must settle all dues with the employee before terminating them. This includes salary, any outstanding bonuses, reimbursem*nts, and other entitlements.
3.Severance pay:
Workers with more than a year of service are eligible for severance pay. The amount of severance pay is usually calculated based on the employee’s length of service and the last drawn salary.
4.Compliance with labour laws:
Employers must comply with all relevant laws while terminating an employee. This includes providing a valid reason for termination and following due process. The employer must also ensure that the termination is not discriminatory or unfair.
5.Proper documentation:
Employers must maintain adequate documentation of the termination process, including the notice period, payment of dues, and any correspondence with the employee. This documentation may be required in case of any legal disputes or claims.
6.Communication:
Employers should communicate the termination decision to the employee professionally and respectfully. The employee should be provided with a clear explanation of the reason for termination and allowed to respond.
It is essential to follow these legalities to avoid any legal disputes or claims by the employee. Before firing an employee, businesses should get legal guidance to make sure they are in accordance with all applicable rules and regulations.
Navigating Employee Terminations in India
Terminating an employee requires careful handling and attention to legal considerations. Employers in India must follow specific legal requirements, provide a clear reason for termination, and avoid discriminatory or defamatory language. We hope these 18 employee termination letter samples and legal considerations serve as a helpful guide to ensure a fair, respectful, and legal process.
Termination Letter FAQs
1.Can an employee be terminated without notice?
An employee can be terminated without notice only in cases of misconduct. But it also needs a disciplinary enquiry that is to be held following legal principles.
2.Do organizations need an employee termination form?
Some large organizations require an employee’s signature on a termination form. It normally includes the employee’s name, department, position and date of termination.
3.Can I use a termination letter sample to write my own termination letter?
Yes, many termination letter samples are available online that can be used as a guide for writing your own termination letter. However, it is important to customize the letter to fit the specific circ*mstances of the termination and ensure that it complies with any legal requirements.
4.What should be included in a termination letter or email?
A termination letter or email should include the reason for termination, the effective date of termination, any severance pay or benefits that will be provided, and any instructions for returning company property or completing final tasks. It should also be written professionally and respectfully.
