Today we want to share with you an employee termination letter, terminating an employee is never an easy job. Nevertheless, there are always reasons to layoff someone from your company – bad performance, toxic morale, company downsizing, or not extending an employment contract.
Sending an employee termination letter is necessary for a company to maintain a good reputation and show professionalism throughout any decision made. It is also to provide a legal record for both the employer and the employee.
Before we jump to the tips, let’s help you know what the termination letter really is. A termination letter is a form of letter used by an organization or business to terminate an employee due to a specific reason. The reason can be poor performance, unacceptable behavior, external factors like a pandemic, and so on.
If you are in charge of making employee termination letters, you should know that there are some important elements to put on your company’s employee termination letter. The following tips and basic employee termination templates will help you to write employee termination letters for various reasons.
How To Write An Employee Termination Letter
An employee termination letter should cover all information about the termination and also terms and conditions that need to be taken care of by both employer and employee. Here are some key elements you need to put on your employee termination letter.
Address Who Is Going To Be Terminated
The first element to put on the letter is the name and position of the employee that will be terminated. Type the name and position of the employee correctly hence no misunderstanding will happen in the future.
State The Last Working Date
The second element is to state the effective date of the termination decision and the last working date of the terminated employee. This will help the employee to prepare for the dismissal and to clarify any potential confusion regarding the employee’s working period.
Explain The Reason for The Termination
This is the most important part of your termination letter. You shouldn’t leave the employee hanging with confusion about the sudden termination. Explain the reason clearly and accurately. You can also add evidence if the reason for termination is related to their bad performance or attitude in the office.
Point Out The Terms and Conditions The Employee Needs to Take Care Of
If there is an employment agreement that was settled on the first contract between the employer and the employee, you need to clarify that on the termination letter too. Point out if there are any reimbursement and additional vacation leave that the employee needs to claim before the termination date, or any company properties that need to be returned.
Clarify The Benefits for Terminated Employee
Lastly, clarify the benefits that the terminated employee will get once their employment is over. Usually, this will be about severance pay or bonus that will be calculated or paid separately from their last paycheck.
Employee Termination Template
Check out our employee termination template below for your own reference!