Contractor Termination Letter Template

Subject: Termination Notice

Dear Mr/Ms. [Contractor.FirstName][Contractor.LastName],

This letter is to inform you that as of (month, day, year), we will no longer be using your (describe services generally, e.g., cleaning, accounting, etc.) for our (state your business, e.g. marketing agency, design firm, etc.) as entered into in our Contractor Agreement (the "Agreement") formed on (month, day, year). Please accept this letter as the official notification that satisfies the appropriate legal constraints as specified in our contract. Our decision in this matter is final and there will be no negotiation.

Our contract agreement with [Contractor.Company] expires on (month, day, year). Please accept this letter as notice to terminate the contract/not renew the contract as of (month, day, year).

(Choose one option below that is specific to the reason for the termination.)

Option A: General Reason for Termination

If circumstances for your business has changed and you no longer need the contractor, use this space to describe the reason.

We have been satisfied with [Contractor.Company]'s services over the past (time length of relationship, e.g., months, days, years). However, we are terminating our contract with [Contractor.Company] because (state the reason for termination, e.g., a shift in business strategy, the business has been acquired, services no longer required, etc.). This change in our business relationship is necessary for us in light of this new development.

Option B: Breach of Contract

If there's been a breach of the contract, use this space to describe the violation and how it violated the original agreement by referencing a specific clause if possible. Here's an example:

It came to attention on DATE that [Contractor.Company] violated the terms of our agreement, and more specifically, the confidentiality clause by sharing private company information with an unauthorized person. For this reason, we are terminating our contract.

Option C: Failure to Perform

If there's been a performance failure, use this space to describe the issue, including agreed-upon deliverables, their corresponding dates, and whether each one has been met. Here's an example:

Our agreement with [Contractor.Company] required completion of the following deliverables:

1. (describe deliverable and the date it was due);

2. (describe deliverable and the date it was due);

3. (describe deliverable and the date it was due),etc.[Contractor.Company] has failed to meet any of those targeted dates/[Contractor.Company] has met the (list which was met) deliverable(s), but has not met any of the others in the time contracted.

Due to the poor performance and failure to meet this/these target(s), we are terminating our contract.

Option D: Fraud

If there's been a fraud, use this space to describe the issue. Here's an example:

It came to attention on DATE that [Contractor.Company] has been fraudently charging [Sender.Company] for services not rendered. Due to multiple pieces of evidence of this fraud, we are terminating our contract.

• All outstanding deliverables should be completed before our contract is officially terminated. Please send us any pending invoices by (month, day, year) so that we can clear any outstanding amounts by (month, day, year).

• As per the terms in the Agreement, you will be paid any remaining fees that are outstanding for the fully completed projects or services rendered. Payment shall be made within the pay period in accordance with the terms of the initial Agreement.

• Please take note that only services rendered and accomplished shall be paid. Any other work or services that have not yet been performed shall not be part of the final payment.

• Also, please note that as of (month, day, year) you will no longer have access to (list any relevant networks, systems, facilities, etc., the contractor will lose access to). Please return any outstanding [Sender.Company](equipment, documents, etc.) that you may be in possession of by (month, day, year).

• We recognize that we have had a relationship with [Contractor.Company] for (length of time). We hope you understand our current situation and the factors that have led to this decision. We appreciate the work that you have performed for us during the period of our Agreement and we wish to part on good terms.

• Please acknowledge the receipt of this notice by signing and returning a copy of this notice within seven days of receipt. Whether you return the signed copy or not, this contract termination will still be in effect as of (month, day, year).

• We expect that you will accept this letter as our farewell message and as a request to close our account with your company. If you have any questions regarding this contract termination letter, please contact me at [Sender.Phone] or [Sender.Email].