An employee who receives a termination email is informed that they will be leaving their current job. The grounds for the employee’s involuntary departure, the next measures they must take, and any benefits or compensation they will receive are all covered in this email. Termination letters and emails are important because they help your company maintain a respectable reputation, demonstrate professionalism, and give a record of events for legal purposes, even though most businesses are not required to use them.
What is a termination letter?
An official notice that the person has been fired from their position is called a termination letter. It is a formal document that expresses an employer’s decision to end an employee’s employment. The grounds for termination, the date of termination, and any information pertaining to severance compensation or benefits are usually included in this letter.
In addition to giving the fired employee crucial information regarding the conditions of their leave, a termination letter documents the employer’s decision to end the employment relationship. Additionally, it is a legally binding record that can be used as proof in any future disagreements between the fired employee and their employer.
Significance of Termination Letter
The significance of a termination letter is stated for the following reasons:
It is a tactic employed by businesses to defend firing a worker. It facilitates the employee’s understanding of the claims and makes it challenging for the employer to change their story.
It emphasises the employer’s professionalism and functions as a previous notice from their end.
It serves as official documentation for any upcoming references as well.
It also facilitates the smooth termination of a relationship with an employee.
It allows the worker a reasonable amount of time and pay to deal with their joblessness.
How to Write a Termination Letter to an Employee?
The date of the letter’s draughting should always come first; it might be stated on either side.
Use greetings such as “Dear” and give the employee’s full name.
Make it clear that the employee’s employment has been terminated by the company.
Don’t forget to include the precise date the termination takes effect.
Provide a list of all the grounds for termination, together with any supporting documentation, if at all possible.
Give the employee a detailed explanation of the benefits and compensation to which they may be entitled, such as provident funds, pensions, leave encashment, etc.
If the employee is in possession of company-provided housing, give them enough time to leave and request that they return the assets.
Inform the staff that the non-disclosure and non-competing agreements are still in force.
Provide the HR contact details so that all questions can be answered.
Maintain a professional demeanour throughout the letter and end it with well wishes. “Best Regards” or “Sincerely” are suitable concluding salutations.
18 Employee Termination Letter Samples
Furthermore, it is more kind and humanitarian to fire employees by sending them a letter or email of termination. To assist you in writing your own, below is a sample termination letter:
1. Example of Termination Email with Reason
An example of a termination email is one that explains why an employee’s employment has been terminated. Along with information about severance pay, benefits, and any remaining responsibilities, the email should contain the date and reason for termination. To stay out of trouble with the law, employers must give a concise and expert explanation.
Subject: Release from Work
Hello [name of employee],
We regret to notify you that effective immediately (or add date) your employment with us is being terminated. Your dismissal results from the following:
Reason 1; Reason 2; reason 3
Kindly get back any company property you own. Should you postpone or neglect to make your last payment, this would cause delays.
Any severance benefits will be distributed in line with corporate rules.
Should any unpaid leaves still exist, they will be computed and paid in line with corporate policies. Should you have questions or issues, you can get to the HR division.
regards,
[Nickname]
[Title]
2. Termination Email Sample for Poor Performance
The termination email explains poor performance and what steps were taken to address it, but ultimately they were unsuccessful. It must be written professionally and follow legal and company policies. Relevant information about the final paycheck and benefits should be provided.
Here is how a sample termination letter should be written for poor performance:
Subject: Employment Termination
Hi [Name of the employee],
We value all the work you have done in your employment as (Job Title). Sadly, the outcome fell short of our expectations. We regret to notify you that effective immediately of (date specified) your employment with (firm name) is terminated.
Kindly remember to go back over the company assets under your control. Should you still have unpaid leaves, they will be compensated in line with corporate regulations. Your home address will also get these records mailed to you. Should you have any questions, please contact the HR division.
We hope your future activities bring luck the best of sort.
Emails,
[Manager’s Name: [Name)]
Section HR Department
3. Employee Termination Letter Sample for Failing Business Expectations
If an employee fails to meet corporate standards, they may be terminated, and the employer should explain the reasons in a clear, objective manner in the termination email. The email should also mention any relevant company policies and offer guidance on appealing the decision or finding new employment.
Below is the sample of the termination of an employee failing to meet corporate standards:
Subject: Termination of Employment
Hi [Name of the employee],
We sincerely regret to inform you that your employment with our company is terminated from 12th April, 2023. We made this decision after you constantly failed to meet the business expectations.
From 12th April, you will no longer be eligible for any compensation or benefits associated with your previous job role. Please return all the company assets that are under your possession by 7 pm on 12th April to our HR office.
You are entitled to your salary until 12th April and you will be compensated for your remaining vacation days. We will also be providing severance pay amounting to 3 monthly salaries.
You are requested to delete any information about our customers, employees or other stakeholders stored in any of your personal devices as you have signed a non-disclosure agreement.
Please feel free to reach me or anyone in the HR department for further questions or clarifications.
All the best for your future endeavors!
Regards,
Mohini Rathod,
HR department.
4. Termination Email Sample Without Cause
The email informs that the employee is being terminated without cause. This means the employer is ending the relationship for reasons other than performance or behavior, such as downsizing or restructuring. The email must include effective date, severance, future actions, and be respectful. It can be a difficult experience for the employee.
Here is the sample email to inform about the termination of the employee:
Subject: Termination of Employment
Hi [Name of Employee],
We regret to inform you that your employment with our company will end on October 30, 2023. This decision is permanent.
You will receive your final paycheck and payment of your remaining leaves today. You will also receive your severance payment amounting to 2 monthly salaries today.
Your healthcare benefits plan will be effective for another 90 days.
You are requested to return the company assets before the end of the day. Also, keep in mind about the confidentiality agreement that you have signed.
If you have any further queries feel free to reach out to the HR Department.
All the best for your future!
Regards,
Belle Peters,
HR department.
5. Termination Email Sample Due to company economic condition
This is a formal email from an employer informing an employee that their employment will be terminated due to economic conditions. It explains that the company is reducing its workforce and unfortunately the employee’s position has been eliminated. It is important for companies to communicate their reasons for termination clearly and respectfully.Below is the sample email to write for the termination of employee due to economic conditions:
Subject: Termination of Employment
Hi [Name of Employee],
We regret to inform you that your employment with our company will end on December 31, 2023. This decision is final and will not be modified.
You have been terminated as the recent economic conditions have led us to reduce 20% of our workforce, your position is a part of this and has been eliminated.
You will receive your final paycheck and payment of your remaining leave on your last working day. You are also entitled for a severance payment amounting to 2 monthly salaries.
Your healthcare benefit will continue to be effective for 90 days after your termination takes effect.
You are requested not to disclose any confidential information as you have signed non-disclosure agreements.
You are requested to return all the company assets under your possession on your last working day.
If you have any further questions, feel free to contact the HR department.
We wish you the best of luck!
Regards,
Backer Adams,
HR department.
6.Termination Letter Sample of Probationary Employment
A probationary employee termination letter is a formal document that an employer uses to tell a worker that their job is ending while they are still on probation. This letter is commonly sent if somehow the employee has failed to meet the employer’s expectations during the probation period or if the employer has opted to end employment for another reason.
Here is a sample probationary employee termination letter:
[Your Company Letterhead]
[Date]
[Employee Name]
[Employee Address]
[City, State ZIP Code]
Subject: Termination of Probationary Employment Notice
Dear [Employee Name],
We are sorry to inform you that your employment with [Your Company Name] will be terminated effective [Termination Date]. You were hired on a probationary basis for [Probationary Term], as was explained to you at the time.
Despite our efforts to monitor your probationary performance, you have not satisfied the basic standards for your position. So, we cannot hire you permanently.
Your final paycheck, including payment for any outstanding leave, will be sent to you via [preferred payment method] within [number of days required by law].
All corporate property, such as your employee ID card, keys, and any assigned equipment, must be returned upon termination of employment.
We appreciate everything you did while at [Your Company Name] and hope the best for you in the future.
Sincerely,
[Your Name]
[Your Title]
[Your Company Name]
7. Prompt Termination An Example of an Employee Letter
An employer will usually use a letter to inform an employee that their job is being terminated immediately and without further notice. This level of termination is typically saved for the biggest violations of company policy or behaviours that seriously endanger the business, its workers, or its customers.
This is an example letter of immediate termination:
[Name of Company]
[Address on the Street]
[Pin Code for City, State]
Subject: Prompt Termination Notification
Dear [Name of Employee],
I regret to notify you that you will be leaving [Business Name] immediately. [Insert reason for termination, such as theft, harassment, or breach of corporate policy] is the rationale behind this decision.
Please be advised that you will not be receiving notice or severance compensation as a result of your instant termination, which is due to a major violation of company policy. For any hours you worked prior to your termination, you will receive payment. As required by law, you will also be compensated for any sick or vacation time you have accrued.
Before you leave the office, please give your manager back any corporate property you may have, such as equipment, badges, and keys.
We hope all of your future endeavours bring you success.
Regards,
[Your Name]
[Your Title]
[Name of Company]
8. Sample Employee Termination Letter for Restaurant Workers
A written notification that an employee’s employment has been terminated is an example of an employee termination for a restaurant. It is essential to include particular information, such as the reason for termination and the effective date, to avoid any confusion or misunderstanding.
An illustration of a letter of termination for a restaurant employee is provided here:
[Letterhead from a restaurant]
[Date]
[Name of Employee]
[Address of Employee]
[Zip Code for City, State]
Subject: Notice of Employment Termination at [Name of Restaurant] – [Date of Termination]
Dear [Name of Employee],
We regret any inconvenience, but your employment with [Restaurant Name] will terminate on [Termination Date]. The management has determined that your employment with us is no longer appropriate because of [Reason for Termination] after giving it considerable thought.
Within [time limit], your due payment will be mailed to the address we have on file for you. This will include vacation time, benefits, and any unpaid wages. Additionally, you have to return all company property, such as keys, clothing, and tools and equipment that were provided by the employer.
We are writing to thank you for everything you have done for [Restaurant Name] and to show our appreciation. We wish you well in your further endeavours.
Do not hesitate to contact us with any questions or concerns regarding this ruling.
[Name of Restaurant Manager]
[Title of Restaurant Manager]
9. Sample Letter of Termination for Change in Employee Benefits
A letter informing an employee that their benefits are ending or changing is known as a termination letter. When an employee’s job terminates or their benefits change as a result of a status change, they receive this letter. An example of an employee benefits termination letter could resemble this:
[Business Letterhead]
[Date]
[Name of Employee]
[Address of Employee]
[Zip Code for City, State]
Subject: Notification of Benefit Termination
Dear [Name of Employee],
We regret to notify you that your [Type of Benefit] benefits with our company will be terminated with effect from [Termination Date] owing to [Reason for Termination of Benefits]. You will get [Details of any Severance or Continuation of Benefits] in accordance with our corporate policy. You might be able to preserve your benefits under the Consolidated Omnibus Budget Reconciliation Act (COBRA). You will receive a separate mailing with more information about COBRA.
We recognise how difficult this will be for you. We pledge to provide you all the support and tools you require throughout this change. For any questions about benefits or termination, please get in touch with our HR department at [HR Department Contact Information].
Regards,
[Name of Company Representative]
[Title of Company Representative]
10. Example of Employee Separation Termination Letter
An employee termination letter is a formal document that informs a worker of their employment. Typically, the letter will include the reason for the termination, the date it will take effect, the employee’s last salary and benefits, and other relevant details.
This is an illustration of a letter of termination for an employee:
[Letterhead from Your Company]
[Date]
[Name of Employee]
[Address of Employee]
[Zip Code for City, State]
Subject: Separation Termination Notice
Dear [Name of Employee],
I regret to notify you that, as of [Termination Date], your employment with [Company Name] will be terminated. We met with you on [Date of Discussion] to discuss the cause for your termination, which is [cause for Termination].
You will receive payment for any unpaid earnings or unused vacation time in accordance with business policy. Within [time period], your last pay cheque will be mailed to the address we have on file for you. Any past-due earnings and/or benefits will be included.
Additionally, you will receive payment for any vacation time you have accrued but have not yet used. After your termination, you will no longer have access to any corporate property, systems, or records. Please return any corporate property you may have, such as tools, keys, or uniforms, to the proper individuals. We really appreciate the time you have spent working for [Business Name]. We wish you well in your further endeavours.
Regards,
[Your Name]
[Your Title]
[Name of Company]
Important Legal Considerations for Employers When Terminating Employees in India
Terminating an employee is a sensitive issue that needs to be handled carefully. In India, companies are required to follow certain rules when terminating an employee. Here are six crucial legal considerations:
1. Giving notice
Before terminating an employee, employers are required to give them written notice. In accordance with the provisions of the employment contract or applicable labour legislation, the notice period should be specified in the contract.
2. Dues payment:
Before firing an employee, employers must make good on all outstanding debts. This covers pay as well as any unpaid bonuses, reimbursements, and other benefits.
3. Severance compensation:
Severance pay is available to employees who have worked for more than a year. The duration of employment and the most recent salary received by the employee are typically used to determine the amount of severance pay.
4. Adherence to employment regulations:
When firing an employee, employers are required to abide by all applicable laws. This entails following due process and giving a good basis for termination. Additionally, the employer is responsible for making sure the termination is neither unfair or discriminatory.
5. Adequate documentation
The notice period, the payment of dues, and any correspondence with the employee must all be adequately documented by the employer during the termination procedure. In the event of any legal issues or claims, this documentation might be necessary.
6. Interaction:
The decision to terminate an employee should be gently and professionally conveyed by the employer. The cause for termination should be explained in detail to the employee, who should then have a chance to comment.
To prevent any legal issues or employee claims, it is imperative to abide by these laws. Businesses should seek legal advice before terminating an employee to ensure that they are complying with all relevant laws and regulations.
