6 Termination Letter Examples and Best Practices for Employers

6 Termination Letter Examples and Best Practices for Employers

What makes a good termination letter? Really, it's tough to fire someone, so a good termination letter will help make everything a little less painful for everybody involved. This helps both you and your employee understand what's going on and what comes next.

When writing these letters, you need to think about both legal protection and treating people with respect. The right wording can keep your company safe while showing basic decency to someone who's losing their job. The right letter is vital because it creates a paper trail that could save you headaches if questions come up later.

In this article, you will explore 6 effective termination letter examples that you can use for your own purposes. Download and customize them according to your needs. Let's find them together.

1. Termination Due to Poor Performance

Dear Mr. Jarrett,

I regret to inform you that your employment with Riverside Industries will be terminated effective June 15, which provides two weeks' notice from today's date.

Despite our discussions on April 10 and May 5 regarding performance concerns, and the improvement plan we put in place, the required standards have not been met. Specifically, your sales targets have remained below 60% of expectations for three consecutive quarters. Plus, customer feedback scores have consistently fallen below company benchmarks.

Your final paycheck will include payment through your last day worked plus any accrued vacation time. Information regarding your benefits and COBRA options will be provided by HR before your departure date.

Please return all company property including your laptop, security badge, and parking pass on your last day. Gracie from HR will schedule an exit interview and assist with any questions regarding this transition.

We greatly appreciate your efforts during your stay with Riverside Industries and wish you success in your future endeavors.

Regards,
Sarah Martinez
Regional Manager

2. Termination for Misconduct

Dear Ms. Carolyn,

This letter is to confirm that your employment with Allied Systems is terminated effective immediately as of March 18, 2025.

This action is the result of an investigation into your conduct on March 12 that concluded you have violated Section 4.3 of the Company Policy regarding proper workplace behavior. As discussed in our meeting this morning, your actions constituted serious misconduct that cannot be tolerated within our organization.

Your final paycheck, including payment for hours worked through today and any accrued but unused vacation time, will be processed according to state law and sent to your address on file. Information regarding your benefits continuation options will be mailed to you within five business days.

Please return all company property including your laptop, access card, company phone, and other belongings to the HR department by March 20. Mark from Security will escort you to collect your personal belongings today.

If you have questions regarding your final pay or benefits, please contact Diane in HR at extension 4522.

Sincerely,
Maude Spencer
Operations Director

3. Termination Due to Company Downsizing

Dear Mr. Christiansen,

It is regret to inform you that your employment as Marketing Coordinator at Nexuz Solutions will be terminated effective the 15th of April 2025. This is because of department restructuring concerning the company-wide downsizing.

This unfortunate and difficult decision is certainly not a reflection of your performance, which has always met our achievements. Unfortunately, this current economic condition forced us to reduce our workforce by 15 percent in all departments.

You will receive severance pay of four weeks, health benefits until May 31, and unused vacation pay. Our outplacement service partner, CareerPath Solutions, will contact you within 48 hours to offer resume assistance and job search support at no cost to you.

HR will schedule an exit meeting to discuss the details of your severance package, benefits continuation through COBRA, and to answer any questions you may have. Please bring all company property to this meeting.

We sincerely appreciate your two years of contributions to Nexuz Solutions and would be happy to provide a positive reference for your future employment opportunities.

Regards,
Jennifer Okafor
Human Resources Director

4. Termination at the End of a Contract

Dear Ms. Leona,

I'm writing to let you know that your contract with LSEG will be ending on April 30, 2025, which is as scheduled. We regret to inform you that we won't be renewing it at this time.

As you know, we brought you on for the Henderson project last May with a 12-month agreement. Now that we've wrapped up that project and have nothing similar coming up soon, we'll be parting ways when your contract ends.

You'll get your final paycheck on our regular payday after April 30, which will include everything you're owed through your last day. Before you go, please connect with IT to hand back your laptop, badge, and anything else belonging to LSEG.

I want you to know how much we appreciate your work. The Henderson client couldn't stop talking about your eye for detail and how you solved problems others couldn't see. If our project lineup changes down the road, we'd love to have you back.

Need a reference or employment letter? Just reach out to Alicia in HR and she'll take care of you.

Thanks for everything,
Michael Torres
Project Director

5. Termination Due to Policy Violations

Dear Mr. Fabian,

Parkside Technologies is hereby informing you about the termination of your employment with the company, effective from the 31st of March, 2025, as a result of repeated violations of the company's established policies.

Despite our discussions on January 15 and February 20, you have persisted in disregarding the attendance policy by coming late, without any prior notification or excuses on eight occasions in the last month. You've also failed to complete the required compliance training that was due on February 1, despite three reminder emails.

Your final paycheck will be mailed to your home address and will include payment through March 31 plus any unused vacation time. Information about continuing your health benefits will be sent separately.

Please make sure to return your company laptop, building access card, parking permit, and other company belongings to HR on your last day. Kelly from HR will contact you to schedule an exit interview and address any questions you may have.

While it didn't work out this time, we are grateful for the time you spent contributing to the customer service team.

Regards,
Anton Bichler
Department Manager

6. Termination During Probationary Period

Dear Mr. Carter,

I wanted to inform you concerning your employment here at Tritech. After careful consideration, we have decided to terminate your employment with effect from March 28, 2025. As we already mentioned during the interview, everyone is presumed to be on a 90-day probationary period that confirms suitability for both parties.

When we sat down last month for your check-in, we talked about some struggles with the project software and connecting with the remote team. I know you've been trying, but we haven't seen enough improvement in these areas to move forward past the probation period.

You'll get your final check on March 31 with everything you're owed through your last day. Since our benefits don't kick in until after probation, there's nothing to sort out there.

Please bring back your laptop and access card when you leave on your last day. Tom in HR will help with anything else and walk you through the final steps.

I understand that this is not easy news. I really appreciate the work you've put in for the past several months, and I hope you find a more appropriate role soon.

Take care,
Layla Washington
Team Lead

Best Practices for Writing a Termination Letter

When you write a termination letter, you must follow these best practices which can help you handle the situation professionally while protecting everyone involved:

A) Clarity and Conciseness in Communication

  • Get straight to the point - state the decision clearly in the first paragraph.
  • Specify the exact last day of employment.
  • Explain the reason honestly but without unnecessary details.
  • Avoid corporate buzzwords or overly formal language that feels impersonal.

B) Maintaining Professionalism and Empathy

  • You should remember there's a person on the receiving end going through a tough moment.
  • Acknowledge their contributions genuinely where appropriate.
  • Use a respectful tone even when addressing difficult situations.
  • Avoid blame or emotional language that may hurt the person.

C) Ensuring Compliance with Labor Laws

  • Include all legally required information for your state or country.
  • Clearly outline final pay details and timing.
  • Explain benefits continuation options (like COBRA).
  • Reference only relevant company policies or contract terms.

D) Providing Necessary Resources for Transition

  • List specific next steps for returning company property.
  • Include direct contact information for HR questions.
  • Outline any severance or outplacement services offered.
  • Specify how to collect personal belongings.

E) Other Important Considerations

  • Have a second set of eyes review before sending.
  • Keep a copy for your records.
  • Deliver the letter in person when possible.
  • Be prepared to answer immediate questions.
  • Consider security protocols for sensitive roles.

Key Elements of a Termination Letter

The termination letter should include these critical elements to make sure both legal compliance and professional communication during a difficult transition.

Essential ComponentsTone and Professionalism
• Employee name and position• Direct but not harsh
• Clear statement of termination• Factual without being accusatory
• Specific last day of employment• Respectful of the employee's dignity
• Brief, factual reason for termination• Free of emotional language
• Final pay information and timing• Clear without unnecessary jargon
• Benefits continuation details• Legally sound but not threatening
• Company property return instructions• Acknowledges the human impact
• Exit process details• Maintains appropriate boundaries

Note: The above termination letter templates (examples) contain random names generated using our Fake Name Generator tool. If you want to use those templates, simply download and replace them with the real employee and employer names.

Special Termination Circumstances

In some situations of termination, it would certainly be wise to treat carefully. These will depend on special challenges posed by remote workers, employees with long-standing presence at the workplace, and those tiresome layoffs.

1) Remote Terminations

  • Use video calls for a personal touch.
  • Provide clear instructions for how to return company property.
  • Follow up with written confirmation.

2) Layoffs vs. Individual Terminations

  • Layoffs are business-driven so explain the situation broadly.
  • Offer transition support like severance or job placement assistance.
  • Individual terminations should be specific, documented, and clearly communicated.

3) Long-Term Employees

  • Acknowledge their contributions and years of service.
  • Offer extended benefits or transition support if possible.
  • Handle discussions with extra care and professionalism.

Wrapping Up

Firing or removing a person from the organization isn't easy. However, a well-written termination letter helps make the process simple. Plus, clear and respectful communication protects both the company and the employee. By following best practices and using the right templates discussed in this article, you can handle difficult situations professionally while showing empathy. A thoughtful approach makes all the difference.

FAQs

Q1: Should the termination letter always state the reason for termination?

Yes, it's necessary to include a brief reason for clarity and legal protection. The language should remain objective and professional without unwanted detail.

Q2: Can an employee respond to a termination letter?

Yes, employees have all the right to respond, especially if they have questions or disputes. While the letter is final, they may seek clarification or discuss severance and benefits with HR.

Explore Related Posts

https://smarttoolsai.com/post/resignation-letter-examples 

https://smarttoolsai.com/post/peer-review-examples 


Share on Social Media: