PandaTip: In a business environment, there are a number of things you may terminate. Any formal termination is usually associated with an implied or stated contract. This termination letter concerns termination of an employee, however, similar rules apply in contract termination. Generally, you want to provide reasons for termination and the authority by which you are terminating; whether that be company policies, an “at will” employment agreement, or a clause in a contract.






As per our meeting with [IDENTIFY PARTIES] earlier today, this termination letter is to formally notify you that your employment with [COMPANY] will terminate effective as of [DATE] (“Termination Effective Date”), due to

___  your failure to meet the terms of your employment agreement.

___  your failure to perform at the level required for your job classification.

___  your failure to abide by [COMPANY] policies and/or procedures.

___  a change in business conditions such that your position is no longer required at [COMPANY].


PandaTip: We’ve given some examples of reasons for termination above. A severance package, as reference below, is most applicable when the employee is being terminated due to lack of need. A company will typically have policies that specify how much is to be paid to the employee, so a reference to those policies may be a good idea. Additionally, the severance package may be contingent upon the employee signing a severance agreement, with a release of claims clause, which ensures that the employee will not make any claims against the company.

A severance package has been provided under separate cover, and the amounts specified therein are inclusive of any payments, statutory or otherwise, that may be owed to you in accordance with [COMPANY] policy or under applicable law, including accrued vacation.  This severance package is available for your review and acceptance at any time prior to [TIME] on [DATE].  The severance package will be void if not accepted prior to this time.

Please note that you are still under certain obligations as imposed by your employment agreement with [COMPANY].  Specifically, you must continue to ensure confidentiality with respect to information made available to you by [COMPANY] or through your employment by [COMPANY], and you must ensure proper transfer of intellectual property contributed while with [COMPANY].

Please find [COMPANY]’s Out-Processing Checklist attached. This checklist will be completed just prior to or on your last day of work. Please review the checklist and be prepared to return items in your possession to your supervisor, HR representative or other staff member who will be conducting your out-processing. This checklist is being provided as a guide to assist as you prepare for your last day of work.

PandaTip: What items do you give to your employees? A computer, phone, keys, etc.?

Also attached is information regarding your current or continuous benefits coverage.  Please review this information in detail, and reach out to your HR representative with any questions.

If you have any questions concerning the information in this employment termination letter, please contact the undersigned directly via email or phone at [EMAIL ADDRESS] or [PHONE NUMBER].





Approved by industry professionals
Get this template