5 termination letter templates and how to write one

Letting an employee go is one of the hardest parts of being a manager or HR professional. Whether it's due to poor performance, unacceptable conduct, layoffs, or other reasons, handling dismissals with professionalism, empathy and compliance is challenging but critical. Having clear templates and a defined process for termination letters can make this difficult task a bit easier.

In this guide, we provide several useful termination letter templates for different scenarios managers commonly face. You’ll also learn why termination letters are important, and best practices for writing effective ones. 

What is a termination letter?

A letter of termination, also known as a pink slip or dismissal letter, is a formal document issued by an employer to notify an employee that their employment is ending. It officially communicates the end of the working relationship and outlines important details like the termination date and reason, final pay, and next steps.

The termination letter serves as a written record of the dismissal. While it may be preceded by verbal discussions or warnings, the letter itself is the defining document stating that the employee has been let go.

Why are employee termination letters important?

Having a clear, comprehensive termination letter is important for several reasons:

1. Legal protection: A well-written letter of termination provides a record of the dismissal reasons and process. This can help protect the employer if the employee later claims wrongful termination or seeks legal action. The letter demonstrates the employer had justifiable grounds and followed due process.
2. Clarity and transparency: Termination letters remove ambiguity by clearly stating that employment has ended and documenting the key details. This ensures both parties are on the same page and prevents misunderstandings.
3. Employment law compliance: In some jurisdictions (including countries like Spain, Poland, and Germany), providing a termination letter is a legal requirement. Even when not mandatory, it demonstrates good faith and fair labor practices on the part of the employer.
4. Smooth offboarding: The termination letter kickstarts the offboarding process by outlining next steps, like returning company property and transitioning responsibilities. This helps ensure loose ends are tied up.

Without a letter of termination, dismissals can be messy and lead to confusion, resentment, and legal exposure. But when done right, these letters facilitate a clear and professional parting of ways.

What should an employee termination letter include?

While the exact contents will vary based on the situation, here are key elements every termination letter should cover:

Reason for termination

The letter should clearly state the reason for termination, whether it's layoffs, poor performance, misconduct or something else. Be specific and, where relevant, provide examples and connect them to company policy violations. This prevents confusion and lends credibility if the reasons are later challenged.

Date of termination

Specify the exact date employment will end, making it clear the decision is final. Where appropriate, note the employee's last day of active work and whether they'll be paid for any remaining days. For advance notice, clarify whether they're expected to work or will be on garden leave.

Details of final pay and benefits

Detail exactly what will be included in the employee's last paycheck, such as remaining salary, accrued leave, severance pay or other statutory payments. Note the payment date and method. Also discuss the status of their benefits, like health insurance, and when coverage will cease.

Company property return and systems access

List all company assets, like laptops, keycards and uniforms, the employee needs to return and by when. Outline when their access to company systems, networks and premises will be revoked. Remind them of their ongoing confidentiality obligations.

How to write a termination letter: 7 best practices

When notifying an employee of their dismissal, it's important to strike the right tone and include all relevant information. Here are some tips for crafting clear, compliant termination letters:

1. Be direct and specific

Open the letter by directly stating its purpose and the outcome, for example:

"This letter is to inform you that your employment with [Company] will be terminated as of [date] for [reason]."

Thereafter, provide more context and details. Use clear, specific language throughout. Avoid vague statements like "we've decided to let you go" or "things aren't working out."

2. Provide reasons and cite policy violations

Back up the termination decision with concrete grounds, such as:

"Your employment is being terminated due to continued poor attendance, including 12 unexcused absences in the past 3 months, in violation of our Attendance Policy, Section 4.2."

Connect the reasons to previous warnings, performance reviews and company policies. This shows the dismissal is fair and justified rather than arbitrary.

3. Maintain a professional tone

The letter should be formal and factual, not emotional or accusatory. Avoid inflammatory language, like:

"We've given you plenty of chances to get your act together, but you clearly don't care about your job."

Instead, simply present the facts in a measured way:

"Despite two written warnings about your attendance, your tardiness has continued. This leaves us no choice but to terminate your employment."

4. Be compassionate but firm

For layoffs and terminations unrelated to conduct, express empathy for the impact on the employee:

"We regret that current business conditions necessitate this layoff and appreciate your service."

But don't give false hope. Make it clear the decision is final.

5. Include next steps and important dates

Help bring closure by detailing offboarding steps, such as:

"Your final paycheck will be deposited on [date] and include [amount] in lieu of notice. Please return your company laptop and keycard to HR by [date]."

This reminds the employee of their responsibilities and of the support being provided.

6. Offer transition assistance if appropriate

Where possible, especially for layoffs, offer some transition support, such as:

"You'll remain eligible for your benefits until [date]. We're also offering outplacement counseling services to assist with your job search."

This ends things on a more positive note and reduces ill will.

7. Proofread carefully

A termination letter is an important legal document, so review it carefully for accuracy, clarity and typos before sending. Double-check details like dates, numbers, names and policy references. Have a second person, like an HR manager or legal counsel, check it too.  This extra step helps prevent costly mistakes and ensures the letter follows current employment law requirements in your jurisdiction.

5 termination letter samples and templates for every use case

Here are some practical templates you can adapt for common termination scenarios, along with examples. Feel free to customize based on your company's policies and voice.

1. Sample termination letter to employee for unacceptable behavior

Use this template to dismiss an employee for misconduct or policy violations:

(Date)

Notice of Termination of Employment

Dear (Employee name),

This letter serves as formal notification that your employment as (Dame of position) at (Company name) is officially terminated effective (Date of termination).

The reasons for your termination include:

• (Incident description 1): On (date), you (brief description of behavior).
• (Incident description 2): On (date), you (brief description of behavior).
• (Incident description 3): On (date), you (brief description of behavior).

These behaviors are in violation of (specific company policies or codes of conduct) outlined in our employee handbook.

Please return the following company property by (date):

• (List of company property, e.g., laptop, keys)

You can expect to receive your last paycheck by (date). Your final paycheck will include (salary, accrued leave, severance pay, or other benefits). A detailed computation breakdown will be provided.

Your access to (platforms and tools) will be revoked by (date and time). Your final paycheck, including (salary, leave encashment), will be processed by (date).

We appreciate your contributions during your time with us and wish you the best in your future endeavors. If you have any questions, please contact (name of company representative) at (contact details).

Regards,

(Name)

(Position)

(Company name)

Here’s an example of the template outlined above:

August 15, 2024

Notice of Termination of Employment

Dear Peter,

This letter serves as formal notification that your employment as Sales Associate at XYZ Corp is officially terminated effective August 15, 2024.

The reasons for your termination include:

• Insubordination: On August 3, 2024, you refused to follow your manager's reasonable instructions to update the CRM after repeated requests.
• Inappropriate workplace behavior: On August 8 and 12, 2024, you made offensive jokes of a sexual nature that made your colleagues uncomfortable.

These behaviors are in violation of the Respect in the Workplace and Employee Conduct policies outlined in our employee handbook.

Please return your company laptop, keycard and any outstanding expense reports to HR by August 22, 2024.

You can expect to receive your last paycheck by August 29, 2024. It will include your salary through August 15 and accrued vacation pay. A detailed computation breakdown will be provided.

Your access to the CRM, email, and office will be revoked as of 5pm today, August 15, 2024.

We appreciate your sales contributions during your time with us and wish you the best in your future endeavors. If you have any questions, please contact me at [email protected] or 111-123-1111.

Regards,

Susan Jones

HR Manager

XYZ Corporation

2. Sample termination letter for poor performance

Use this template when dismissing an employee for performance issues:

(Date)

Dear (Employee name),

This letter confirms that your employment with (company name) is terminated effective (date), due to failure to meet the performance standards of your role as (position).

As discussed during our meetings on (Dates of performance discussions), your performance has fallen significantly short of expectations in the following areas:

• (Performance issue 1)
• (Performance issue 2)

We provided you with a plan on (Date), which outlined clear goals and timelines for improving your performance. However, as of today, you have not met these objectives. We have therefore made the difficult decision to end your employment.

Your final paycheck, including (Salary, benefits, etc.) will be deposited on (Date). Please return all company property, including (List items) to (Contact person) by (Date).

We appreciate your efforts and wish you success in your future career. Should you have any questions, please contact me at (Contact information).

Sincerely,

(Manager Name)

(Manager Title)

(Company Name)

3. Sample termination letter without cause

Use this template for terminations unrelated to the employee's conduct or performance:

(Date)

Dear (Employee name),

I regret to inform you that your employment with (Company name) in the position of (position) will end on (Termination date). This decision is not a reflection of your performance or conduct. Rather, (Briefly explain reason for termination, e.g., department restructuring).

In recognition of your service, you will receive:

• (Severance amount/calculation)
• (Continued benefits and duration)
• (Outplacement support)

Your final paycheck will be processed on (Date) and include: (List pay and benefits included).

Please return your (Company property) to (Contact person) by (Date). Your system access will remain active until (Time) on your last day to facilitate knowledge transfer to your team.

We greatly appreciate your contributions and commitment to (Company) over the past (Duration of employment). Please let me know if you have any questions or if there is anything we can do to help with your transition. I am happy to provide a reference for your job search.

Sincerely,

(Name)

(Title)

4. Sample termination letter with reason or cause

Use this template to dismiss an employee for cause (e.g., serious misconduct or policy violations):

(Date)

Dear (Employee name),

This letter serves as official notice that your employment with (Company name) is terminated effective immediately, (Date), for cause. The reason(s) for your termination are:

• (Reason 1 with details of incident/violation and relevant policy)
• (Reason 2 with details of incident/violation and relevant policy)

These actions constitute a serious breach of your employment agreement and our company policies, leaving us no choice but to end your employment.

Your final paycheck, including wages through (Last day of work), will be deposited on (Date). You will not receive (Severance package, Benefits) due to your termination for cause.

Please return all company property in your possession, including (List items) to (Contact person) within (Number) business days. Your access to company systems will be terminated immediately.

If you have any questions, please direct them to (Contact person) in (Department) at (Contact information).

Regards,

(Name)

(Title)

5. Sample termination letter for layoffs

Use this template when dismissing an employee due to downsizing or restructuring:

(Date)

Dear (Employee name),

I regret to inform you that due to (Reasons for layoff, e.g., economic conditions, restructuring), we have made the difficult decision to eliminate your position of (Position) effective (Layoff date).

Please understand that this decision is not a reflection of your performance or value to (Company). We appreciate your dedication and contributions over the past (Duration of employment).

To help with your transition, we are offering:

• (Severance package details)
• (Benefits continuation information)
• (Outplacement services)

Your final paycheck will be issued on (Date) and include (Detailed list of final pay and benefits).

Please return all company property to (Contact person) before your last day. We are happy to provide references for your job search. If there are any other ways we can assist with this transition, please don't hesitate to ask.

Thank you again for your service to (Company). We wish you all the best in your future endeavors.

Sincerely,

(Name)

(Title)

Easily manage employee offboarding with Rippling

Terminations are a difficult but inevitable part of running a business. Using clear, compliant termination letters helps protect your company legally and treat exiting employees fairly. But crafting these letters is just one part of the complex offboarding process.

Rippling is an all-in-one HR management platform that makes employee departures painless. With Rippling, you can:

• Automate offboarding tasks like disabling system access and recovering equipment
• Track the offboarding process to ensure a smooth exit
• Schedule access termination for optimal timing (immediate or future date)
• Automatically transfer departing employee's data (like Google Drive files) to their replacement
• Monitor device returns with automated alerts and tracking
• Generate comprehensive reports to verify all application access has been revoked

Rippling streamlines every aspect of the employee lifecycle, from onboarding to performance to departure. Its powerful automation and intuitive workflows save you time and keep you compliant, no matter your company size.

Employee termination letter FAQs

How do you write a termination letter?

To write an employee termination letter, follow these steps:

• Clearly state the purpose of the letter upfront
• Specify the termination date and whether it's effective immediately
• Describe the reason(s) for termination, with specific examples
• Outline details of the employee's final pay and benefits
• Explain next steps, like returning company property
• Use an empathetic but firm tone
• Proofread the letter carefully before sending

Refer to the best practices and templates in this article for more guidance.

Does a termination letter mean you were fired?

Not necessarily. A termination letter is used for all types of involuntary dismissals, including layoffs and job eliminations unrelated to the employee's conduct.

The termination letter should specify the exact reason employment is ending. Only if it cites causes like poor performance or policy violations could the letter be considered proof of firing "for cause."

What is an example of a termination letter without cause?

Here is an example of a termination letter without cause:

Dear Jane,

I regret to inform you that your position as Marketing Specialist is being eliminated effective October 15, 2024 due to department restructuring. This decision is not a reflection of your performance or abilities. Rather, our new business strategy requires a different mix of marketing skills.

To support you in this transition, you will receive:

• Four weeks of severance pay
• Continuation of your health benefits for 60 days
• Outplacement services including resume writing and job search support

Your final paycheck will be processed on October 31, 2024 and include your salary through October 15, accrued vacation pay, and the severance amount.

Please return your company laptop, keycard and any outstanding expense reports to HR by your last day. Your system access will remain active until 5pm on October 15 to allow you to transition your work.

We greatly appreciate your creative contributions to our marketing over the past three years. Please let me know if you have any questions or if there is anything we can do to help with your career transition. I am happy to provide a reference.

Sincerely,

Mark Johnson

Director of Marketing

Do you get a termination letter if you quit?

Typically, no. Termination letters are used for involuntary terminations initiated by the employer, not voluntary resignations initiated by the employee.

When an employee resigns, it's standard practice for them to provide a resignation letter to their employer giving notice of their departure. The employer may then respond with an acceptance letter acknowledging the resignation and outlining the offboarding process.

However, in some cases, an employer may issue a termination letter even if the employee offers to resign in lieu of being fired. This usually happens when the resignation occurs in the context of misconduct or performance issues and the employer wants to document that they took action.

This blog is based on information available to Rippling as of November 5, 2024.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.