Writing an Employment Termination Letter is an important step to take when dismissing an employee. Use our Termination Letter template to ensure no important details are missed.
1. Note the reasons for dismissal
There are many reasons why an employee just doesn’t work out. These reasons can include the employee’s conduct on the job, or their capability. However, an employee can also be let go because they’re redundant within a company.
Other reasons could include situations such as the end of a fixed-term employment or the failure to complete a probationary employment period.
2. Provide employer and employee details
For both the employer and the employee, include their names and addresses (including city, state/territory, and postcode). For the employer, also include the business type (individual or organization) and their contact information.
3. Include termination details
Make sure to include these other important details within your document:
Notice details
Providing notice means that the employer notifies the employee that they will be leaving their job after some set period of time, such as four weeks. Providing pay in lieu of notice means that the employer pays the employee some amount of their wage to compensate for a shorter notice period. The pay in lieu of notice could be for all or part of the notice period.
An employer can provide an employee with:
- A notice period
- Pay in lieu of notice
- Another kind of compensation or notice
The law usually requires that an employer gives an employee notice of dismissal. You should ensure that you know how much notice is required by law or by the employment contract.
In some situations, such as when an employee exhibits serious misconduct, it’s possible to dismiss an employee with no notice.
Last day
Note the terminated employee’s official last day of work.
4. Provide final details
You can choose to provide additional details regarding the employee’s dismissal.
Benefits
You can choose to include details about the termination of an employee’s benefits, if applicable. Note the day that the employee will no longer have access to their benefits, such as the last day of work, last day of the month, or last day of notice.
Additional compensation
If the dismissed employee will receive additional compensation or assets, make note of them in the termination letter.
There may be requirements a dismissed employee must meet in order to receive compensation, such as signing a general release form. Make a note of these requirements.
Company property
List any property that you require the employee to return, such as keys, phones, computers, or company cars.
5. Include additional clauses
If there is anything that hasn’t been previously addressed in the Termination Letter template that is applicable to your situation, you can choose to make note of it here. Most Employment Termination Letters don’t need additional clauses.
6. Sign the document
Both parties must sign the document to ensure its validity. If you know the date that all parties will sign, make note of it here. You can also choose to cc someone in the letter.