Free Employment Termination Letter

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Frequently Asked Questions

What does it mean to be terminated with cause?If one's employment is terminated with cause, there is typically no requirement on the part of the employer to provide notice or financial compensation. However, the employer must ensure that the reason for termination is properly set out and that the employer can provide the cause if it goes to court. Typical examples of termination with cause include dishonesty, disloyalty, insubordination, disobedience, lateness/absenteeism, illness, disruption of business affairs, alcohol or drug use, incompetence, neglect of duty, conflict of interest, criminal or immoral conduct and sexual harassment.

Other than when required to provide compensation or notice by an employee's employment contract, a US employer does not have to provide notice or compensation to an employee who is terminated without cause.

Your Employment Termination Letter

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_________________________
_________________________________________________
__________, Virginia
__________


18th day of December, 2017


_________________________
_________________________________________________
__________, Virginia
__________


Dear _________________________,

Re: Termination of Employment

This is to inform you that your employment with _________________________ has been terminated effective immediately.

Your position has been terminated with cause as a result of your conduct. _________________________________________________________________________________________________________________________________

The statutory law does not require an employer to provide any notice or pay in lieu of notice when an employee is terminated with cause.

We would kindly request that you immediately return all company property that was obtained during the course of your employment with our company.

You are reminded that all trade secrets, business plans and procedures, client contact lists and other confidential information of _________________________ are proprietary and may not be used by you in any way.

If you have any questions or concerns regarding the above, please do not hesitate to contact me.

Yours truly,

_______________________________
__________
__________

_______________________________
Date

Employment Termination Letter Information

Alternate Names:

An Employment Termination Letter is also known as a/an:

  • Termination Letter
  • Notice of Termination
  • Employment Separation Letter

What is an Employment Termination Letter?

An Employment Termination Letter is used by an employer to communicate termination of employment, with or without cause. It is provided to the employee as a formal notice of dismissal from their current position with the company.

What should an Employment Termination Letter include?

An Employment Termination Letter should include as many details as necessary regarding the dismissal of the employee in question. General information, such as the name of the employee and their position, as well as the name and contact information for the manager or human resources person in charge of the process, should also be included.

Here are some examples of information the Employment Termination Letter should include:

  • A description of the event or events that resulted in the decision to dismiss the employee: misconduct, incompetence, insubordination, absenteeism, stealing, falsifying company records, or damaging company property. Include the date and time of any previous warnings about behavior (verbal or written) if applicable
  • Any expenses owed to the employee (such as if the employee purchased goods or services for business reasons and requires reimbursement for those purchases), and when any benefits will end (e.g. health benefits, or employee discounts on product or services)
  • The employee's termination date
  • A reminder to the employee to return any company property they may have in their possession
  • Specific details on severance pay, if applicable, or payout of vacation time
  • Any necessary additional terms or clauses, such as confidentiality

Does an employer need to provide an Employment Termination Letter?

While there are no laws that technically require an employer to provide an Employment Termination Letter to an employee they are letting go, many employers choose to do so anyway as part of a formal process, and/or to avoid a potential lawsuit. For the employer, it's good practice to have documentation outlining the employee's termination in case it needs to be referred to later. The terminated employee should also receive a copy for their records.

Although it doesn't negate the risk of a lawsuit by the former employee, simply having good documentation available as part of a paper trail is beneficial to both parties.

Related Documents:

  • Employee Warning Letter: a document an employer provides to an employee who has violated workplace rules or policies
  • Employee Offer Letter: a document used by an employer to offer an employment opportunity to a potential new employee
  • Employee Evaluation: a document used by employers to measure the job performance of an employee
  • Employment Contract: a document that outlines the terms and conditions of employment for a newly hired employee
  • Compensation Agreement: a document that an employer uses to set out wage expectations for a new hire, or change the wage of an existing employee
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