– Termination Letter –
A termination letter is a letter written by an employer to an employee containing details surrounding their termination.
It is typically used as a formal notice to the employee and an official record of the fact they have been terminated.
A termination letter is also referred to as a letter of termination, a notice of termination, a letter of dismissal, or a termination notice.
The term “pink slip,” although less common nowadays, may be a reference to a termination letter delivered on the pink layer of a triplicate form.
Why is Termination Letter Necessary?
It may go without saying, but being fired from a job can be a demoralizing experience for an employee, even while an employer had valid reasons for terminating employment.
Despite this, disgruntled employees may believe that personality conflicts or benign mistakes may give rise to legal remedies.
Because of this, having written confirmation of your termination, and the reasons behind it is an important step that is often overlooked because at-will employees may be fired for any reason, as long as it is not an illegal reason.
Nevertheless, a termination letter may clarify misunderstandings and offer an employer additional protection against legal action in the future.
Things to be included in a Termination Letter
As such, this post will highlight what should be in a termination letter, and how one could be used to stave off potential legal action.
1. Documentation of what went Wrong
A termination letter is supposed to detail the actual reasons why the employee was dismissed.
However, the letter should not include information suggesting that the employee was terminated for exercising a legal right such as taking allowed time off or reporting safety violations.
2. An accurate Timeline of Events
A full recitation of the opportunities that were given to correct problem behavior or other deficiencies must detailed, along with the employee’s responses to them before he or she was dismissed.
3. Confirmation of a Termination Date
Termination date is essential because it starts the clock for important post-termination notices that must be sent.
Also, an employee will need a confirmed date of separation in order to receive unemployment compensation.
If you have additional questions about termination letters, an experienced employment law attorney can advise you.
How to Write a Termination Letter
Following are the essential steps involved in writing a proper termination letter:
1. Start with the Date
Since you will be writing the termination letter on the company letterhead, the company’s name and address will be already printed at the top.
So, you can begin with the date of drafting the letter. You can write the date either at the right or left top of the letter, below the printed header.
2. Address the Employee
Use a salutation like ‘Dear’ to address the employee. Include the complete name of the employee in the salutation.
Example: Dear [employee name]
3. Make a Formal Statement of Termination
Make a clear statement that the company has terminated the services of the employee. You can begin with something like ‘I am sorry to inform you that…’, ‘This letter is to formally notify you that…’ or ‘Please take note that…’.
4. Specify the Date of Termination
It is essential that you specify the date from which the termination comes into effect. This would be the last working day for the employee in the company.
The time gap between the date of serving the termination notice and the final date of termination should be equal to or more than the notice period stipulated in the employment contract.
5. Include the Reasons for Termination
List all the reasons that led to the employee’s termination. In the case of termination without cause, clearly explain the position of the company.
If it is terminated with cause, support the reasons with evidence, wherever possible.
The letter should clearly indicate that the company has given enough opportunity to the employee to take corrective measures before deciding to proceed with the termination.
6. Explain the Settlement Details
Explain the compensation and benefits the employee will be entitled to. These can be in the form of provident funds, pension, leave encashment, and severance pay.
Let them know how they can collect their final documents like experience certificates and salary slips.
If they are covered under the employee insurance policy, specify whether such coverage will expire or continue until a certain date.
7. Request them to Return the Company Property
If the employee is in possession of any company property, such as go down keys, laptop, mobile phone, or ID card, request them to return such property.
If they are in occupation of a company-provided accommodation, you may give a reasonable time to vacate the property.
8. Remind them of the Binding Agreements
Some agreements like non-disclosure agreements and non-competing clauses often continue to apply even after an employee leaves the company.
Make sure that you remind them of such agreements that are still in force. You may also include a copy of such agreements for their record.
9. Include the Contact Details of the HR
Towards the end of the letter, you can include the contact information of the HR representative whom the employee can approach with their queries.
If there are multiple people handling different HR functions, include all of them along with the functions they handle.
10. Maintain a Professional Tone
Use a professional tone and language throughout the letter, no matter how familiar a relationship you share with the employee.
Keep the content relevant, clear, and concise. Be honest and accurate while representing the events.
11. Conclude and Sign the Letter
You can conclude the letter with good wishes or by sympathizing with the employee. The closing salutation can be something like ‘Sincerely’ or ‘Best Regards’.
Leave some space for signature and write your name below that. Be sure to sign the letter after you take a printout.
Use our sample letters as guides, but be mindful of the tone of your final customized version. Be sensitive, but firm.
If possible, ask a fellow HR colleague to read the letter and let you know if anything sounds wrong.
Here’s our Termination Letter Template
Sample 1
Dear [employee name],
I’m sorry to inform you that as of [termination date], you’ll be no longer employed with [company name].
As discussed, we think this is the best decision, because of [insert reason for termination]. [This is the final step in our disciplinary process/ a decision we made after the end of your Performance Improvement Plan launched on _date.]
From [termination date] on, you won’t be eligible for any compensation or benefits associated with your position. Please return [company property that must be returned] before [date] to the Human Resources office.
You are entitled to your salary up until [termination date] and we’ll also compensate you for your remaining vacation days.
We’ll also provide severance pay that will amount to [amount]. [You’ll receive a separate letter with the complete details of compensation or other related information you’re entitled to receive from us.]
Please keep in mind that you have signed a non-compete, non-solicitation, and non-disclosure agreement.
If you have any information about our customers, employees, or other stakeholders stored on paper or on your personal devices, you must delete it immediately.
If you have questions or clarifications, I’m at your disposal for up to [five] working days after your last day of employment.
We wish you the best of luck.
[Your name and signature]
Sample 2
Dear Mr. Thomas,
I’m sorry to inform you that as of 12/3/2018, you’ll be no longer employed with Acme Inc. As discussed, the reason behind this is your reduced performance over the past six months.
We made this decision after the end of your Performance Improvement Plan, which we launched on 07/03/2018.
From Dec. 3 on, you won’t be eligible for any compensation or benefits associated with your position.
Please return your swipe card, company cell phone, and laptop by 5 pm on Dec. 3 to our HR office.
You are entitled to your salary up until Dec. 3 and we’ll also compensate you for your remaining vacation days. We’ll also provide severance pay that will amount to two monthly salaries.
You’ll receive a separate letter with the complete compensation details and information about your health coverage (as per Consolidated Omnibus Budget Reconciliation Act or COBRA).
Please keep in mind that you have signed a non-compete, non-solicitation, and non-disclosure agreement.
If you have any information about our customers, employees, or other stakeholders stored on paper or on your personal devices, you must delete it immediately.
If you have questions or clarifications, I’m at your disposal until the end of next week.
We wish you the best of luck.
Elijah Burns.
What’s a Lease Termination Letter?
A lease termination sometimes called an “end of lease letter,” is a written notice from the property manager or landlord to the tenant to inform them their lease is about to expire.
The document also states that the lease will not continue after a set date that the landlord determines. A move-out notice, or notice to vacate, is a similar document provided by the tenant to the landlord.
The notice states that the renter does not plan to renew the lease and sets the date to move out. Landlords should request a move-out date to plan, paint, and prep the property for new renters.
Lease termination letters are often sent at the end of a lease term. You may decide to take the apartment off the market, renovate and raise the rent, or find the tenant unreliable and prefer to find a new renter.
Lease termination letters can also be used if the tenants violate the terms of a lease arrangement or fail to pay rent.
More on Lease Termination Letter
Your city or neighborhood may also experience new zoning codes or ordinances, or the apartment may have been damaged during a storm or inclement weather.
How to Write a Lease Termination Letter
Whether you’re a landlord who needs to send a lease termination letter to a tenant, or a tenant who needs to send one to your landlord, a simple lease termination letter should include the following basic elements:
1. Landlord: Name of the party who owns the premises being rented.
2. Tenant: Name of the party who rents the premises and pays the landlord.
3. Original rental agreement: Landlord and tenant contact info, address of the premises, start and end dates of the agreement.
4. Vacate date: When the tenant will move out and leave the property.
5. Forwarding address: Where to send future notices or security deposits.
6. Reason for termination: Why the agreement is ending.
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Tips for Writing a Lease Termination Letter
Here are a few general rules to follow when writing your lease termination letter:
1. Proofread for errors. Be sure to check dates and spelling to make sure the information is accurate.
2. Keep it clear. You should include a clear reason for your early termination, especially if your lease only allows early termination under certain circumstances.
3. For example, leases generally allow a tenant to leave early if the premises aren’t habitable and the landlord hasn’t made repairs.
4. Check the lease for where and how to deliver it. Leases often tell you where to give notice and sometimes even specify how it must be delivered.
Additional Tips for Writing a Lease Termination Letter
Don’t sit on it. Once you know you need to terminate your lease early, write and send your lease termination letter as soon as possible.
If you’re terminating early, it’s better to give the other party as much notice as possible so they can plan accordingly.
When to Send a Lease Termination Letter
A lease termination letter is usually given to a tenant at least 30 days prior to the end of the lease date stated in the letter.
A 30-day notice is especially common with month-to-month tenancies.
However, you may be required to provide a 60-day notice or even a 90-day notice of termination, so be sure to read through your lease agreement thoroughly and check your local laws before you send a lease termination letter to your tenant.
This will ensure you have given them proper notice according to your state regulations and the terms of your lease.
Lease Termination Sample Letter
Here is a sample lease termination letter to help you get started. Keep in mind that this is just a sample letter, so be sure to check your state laws and the terms of your lease before finalizing your lease termination letter.
➤ [Your Name]
➤ [Your Phone Number or Email]
➤ [Street Address]
➤ [City/State/Zip]
➤ [Today’s Date]
➤ [Tenant Name]
➤ [Tenant Address]
➤ [City/State/Zip].
➤Dear [Tenant First Name],
This letter is to inform you that the lease for [Address] signed on [Lease Start Date] will terminate on [Lease End Date] and will not renew.
Attached is a copy of the lease agreement for your reference. Per the lease agreement, this lease termination letter fulfills the [Number of Days]-day notice requirement.
I have attached a copy of the move-in walk-through and would like to schedule a move-out walk-through at the end of the lease. Please email or call to schedule the final inspection.
Please also send your new mailing address for future reference and in the case of returning your security deposit.
Thank you for your time on the above matter and for being a great tenant. If you need anything further, don’t hesitate to reach out.
Sincerely,
➤ [Your Signature]
➤ [Your Full Name]
What Should Be Omitted From a Lease Termination Letter?
1. No matter the situation, it’s important to leave on good terms with your tenant. In order to keep the peace, certain language and wording should be avoided.
2. Your lease termination letter should be written in professional and polite language. It should not come across as being rude or dismissive.
3. Don’t make any promises about refunding a portion of the full security deposit in your lease termination letter.
4. Even if you’re sure that there are no damages to the property, never make any verbal or written promises about the tenant’s security deposit until it’s definite.
5. Avoid using vague language, especially when it comes to the lease end date. Write out the full date (month, day, year) so there are no questions.
6. You should also clearly state the exact reason for the lease termination. Of course, never make up or embellish the cause of termination.
Helpful Tips for Writing Your Lease Termination Letter
Before you begin filling out your lease termination letter, let’s go over a few final tips.
➤ Remember that you can personalize the letter however you like, such as including the reason for termination (if applicable) or specific move-out instructions (that should also be outlined in the lease).
➤ Keep your written notice simple and polite. Your note is not the place to settle past issues with your tenant.
➤ The only purpose this letter serves is to give notice to your tenant of their end-of-lease date and provide a record of your written notice.
➤ Keep a copy of the lease termination letter for your records. It’s a rental document that all landlords need to have just in case.
Further Helpful Tips on Lease Termination Letter Writing
Don’t forget to include the date in your letter. The date proves that you have met the notice period according to your state laws and the lease agreement between you and your tenant.
Be sure to request your tenant’s forwarding address so you have somewhere to send the security deposit back to them (if applicable).
If you don’t hear from your tenant about the final walk-through, follow up with a call or email as a friendly reminder.
Remember: When Ending a Lease, Respect is Key
It is always in your best interest as a property owner or manager to follow the rules. And a part of these rules includes notifying your tenant of the end of their lease with a lease termination letter.
Staying on good terms with your past and current tenants will only help you as a landlord, so keep your letter brief, polite, and professional.
If you’ve read through your lease agreement and studied your local laws on this matter, then it’s time to take our sample lease termination letter and make it your own.
Frequently Asked Questions About Lease Termination Letters
1. Can a Lease be Terminated without Notice?
Typically, the tenant needs a 30 or 60-day notice before lease termination. Check your state laws for specific information.
2. Can Either Party Terminate the Lease?
In most states, tenants have the right to terminate a lease under certain conditions, including active military duty, violation of habitability, or right of entry violations.
Again, check your state laws for more detailed information.
3. What Happens after Notice of Termination?
The tenant has a number of days, determined by state law and your rental agreement before they need to vacate the property.
The amount of time the tenant has to vacate the property should be stated in the notice of termination letter.
What is a letter of Employment Termination?
A letter of employment termination is an official document designed to notify employees that their employer plans to discharge them from their duties.
The main purpose of a termination letter is to document that the employer gave their employee fair notice of dismissal and to inform the employee of their official last day at work.
Things to be included in a Termination Letter
Based on guidelines from the Fair Work Act, a termination letter should include the following elements to meet the employer’s legal obligation to give reasonable notice of dismissal:
1. The employee’s last day
A termination letter needs to explain how long of a notice period the employee will get and when their last day is.
The minimum length of notice an employer has to provide depends on how long the employee worked at their organization, but they may offer the employee a longer notice period at their discretion.
2. Amount of Payment to Replace Notice
If an employer wants an employee to leave immediately, they can choose to pay the employee for the duration of the notice period instead of allowing them to continue working.
In this case, the letter should list the amount they plan to pay the employee and clearly state that the dismissal is effective immediately.
3. An Overview of Steps Leading up to Termination
If the employee had any performance issues, the termination letter should summarize how the employer worked to improve employee conduct.
This can include details about written or verbal warnings, probation periods, or employee improvement plans.
4. Reasons for Dismissal
The termination letter should clearly state why the employer decided to dissolve their professional relationship with an employee.
Some employers choose to include additional information in the termination letter, such as the steps the employee needs to take to complete their final assignments or turn in company equipment.
Thorough termination letters also include details about any accrued benefits and when the employee can expect their final wages.
When do Employers Use Termination Letters?
In Australia, all employers have a legal obligation to give their employees a termination letter, except in cases of serious misconduct or when the employee meets specific standards explained in the Fair Work Act.
When an employee deliberately poses a risk to the business or their colleagues, employers can dismiss them without providing a termination letter and a notice period.
Employers can also skip the termination letter and notice period for these situations:
1. Seasonal workers
2. Employees with a fixed-term contract
3. People in a predetermined training period
4. Daily or weekly hires in the meat processing or construction industries.
In all other circumstances, employers give out termination letters any time they need to dismiss an employee.
You can deliver a termination letter in person or send it to their last-known address. Once you provide the employee with the letter, their notice period officially begins.
When is Termination Letter Necessary?
There are several situations where a manager or human resources representative may need to end a professional relationship with another employee through a termination letter. These include:
1. Workplace Misconduct
Repeatedly breaking company policies is often grounds for dismissal. Multiple cases of minor misconduct often require a termination letter to officially end employment.
2. Inadequate Performance
If an employee doesn’t meet job expectations or requirements and doesn’t show signs of improvement, they may receive a termination letter so the organization can find a more qualified candidate.
3. Role Redundancy
If a company undergoes restructuring or merges with another business, they may need to eliminate specific roles and provide these employees with a termination letter.
4. Financial hardship
Some businesses need to downsize their staff due to cash flow issues, in which case they must lay off the affected employees by sending a termination letter.
Why are Termination Letters Important?
Termination letters are important because they ensure clear communication between employers and employees.
The main benefits of using termination letters to inform employees of their dismissal are:
1. Fulfilling Legal Obligations
The Australian government requires that employers provide their employees with written notice if they plan to dismiss them from their duties.
Writing termination letters fulfills this obligation and provides both the employer and the employee with proof of notice on a specific date.
2. Creating Documentation
If either the employee or the employer has questions about a dismissal, they can refer to the termination letter for clarification.
3. Easing the Transition for the Employee
Termination letters help employees make a plan for their final days at a company, start looking for jobs and prepare to transition their responsibilities to other employees.
Additional Details
4. Preventing unfair Dismissal
Because termination letters include information about why the employee was dismissed, they can prevent employers from unfairly dismissing employees or misrepresenting the reason for termination.
How to Write a Letter of Employment Termination?
If you work in a supervisory role or a human resources position, you should understand how to write a termination letter in the event that you need to dismiss an employee.
Use these Steps as a Guide to Write an Accurate and Thorough Termination Letter:
➤ Clearly List the Date of Delivery
Start the letter with a header that lists the day that you plan to give the letter to the employee. This is essential for documentation purposes and proves that you gave the employee adequate notice.
➤ State that the Employment is Being Terminated
Use direct language to explain that the employee’s relationship with the company is ending. Be clear about the length of their notice period and the date of their last shift.
➤ Reference Specific Incidents
When describing why you need to terminate the employee, refer to the specific situations that led to their dismissal.
Include details like the date of written warnings to show that the reason for termination is legitimate and eliminate any confusion about why the employee was dismissed.
➤ Summarize Employer Obligations
If the employee is entitled to any benefits, compensation, or other services from the employer, summarize this information at the end of the letter.
Review the steps they need to take to handle benefits like severance package, insurance, retirement funds and unused paid leave days. If they
➤ Explain Next Steps
Describe how employees should return the equipment, set up exit interviews, or appeal their dismissal. Include contact information for human resources so they can reach out with any questions or concerns.
What to Avoid in a Letter of Termination
When preparing a termination letter, avoid these common issues that could cause confusion for the employee:
1. Inaccurate Information
A termination letter should always accurately represent events as they happened. Including false information could put the employer at risk.
2. Unnecessary Details
Only include information that relates to the recipient of the letter. Adding too many details can make it harder for the employee to find essential information about their termination.
3. Casual Language
A termination letter is a professional document. It is important to maintain a professional tone throughout the letter.
Example of a Letter of Employment Termination:
March 24, 2021
Dear Clara,
This letter is to inform you that your employment with Delaware Consulting will end as of April 24, 2021, after a one-month notice period starting on March 24, 2021.
Over the last few months, Delaware Consulting has experienced a significant drop in business and client numbers. As a result, we have decided to reduce our workforce by 25%.
Unfortunately, your role will be made redundant and we would no longer require your services. This company decision is final.
You will receive your final wages after your last official day with the company and also receive payment for unused leave days that you have accumulated. You will also receive a $25,000 severance payment.
To claim this, kindly sign and return the attached claim document.
Your healthcare benefits will remain in effect for 6 months or 180 days post-termination.
You are requested to return all company equipment and property in your possession, the company laptop, mobile phone, ID badge, and keys on your final day of employment.
You have signed a number of confidentiality agreements with the company. Kindly review the attached copies.
Within the next week, the human resources team representative will reach out to you to set up a meeting to discuss your employment benefits and compensation.
They will also connect you with a placement service firm to assist you in your job search. If you have any further queries, your representative is Tim May.
He can be contacted at 232-343-555 or [email protected]
Please accept our acknowledgment and appreciation for your services during your employment with Delaware Consulting.
Sincerely,
[Name]
How to Make a Letter Ending a Contract
What is a Letter Ending a Contract?
A contract termination letter provides formal notification of the decision of a party to terminate or cancel an agreement.
Business contracts that are delivered on an ongoing basis need to be terminated correctly to avoid any disputes.
Whether the contract involves regular delivery of goods, the supply of services, or another open-ended business relationship, it is vital that proper notification is given of a decision to bring the business arrangement to a close.
Make sure you follow proper procedure when you wish to bring a contract to an end with this contract termination letter.
This letter to end a contract is required to notify the other contracting party when you wish to end a contract immediately or by notice.
Additional Notes
Preparing this letter will help ensure that unnecessary damages won’t be brought against you by the other party to the contract.
This contract termination letter covers the type of notice used and the period of time before the notice takes effect.
When Should I Use a Letter Ending a Contract?
Use this letter ending a contract to:
1. bring a contract to an end by notice (there need not be a reason)
2. bring a contract to an end immediately because there is a default in the performance of the contract
3. give notice of a problem to allow the other party to put it right by a certain time before termination takes effect
What is Included in a Letter Ending a Contract?
This letter ending a contract covers the:
➤ type of notice that is used
➤ period of time before the notice takes effect
➤ time allowed to remedy the problem (if any)
Do I Need a Letter Ending a Contract?
Preparing a formal letter ending a contract and delivering this to your supplier or purchaser ensures that the process of terminating the contractual business relationship is properly documented.
This documentation serves as valuable proof that the correct notice period (if required) was given and helps to avoid any potential disagreements.
It can also be used if a contract needs to be brought to an end immediately (eg due to a serious breach of contract).
Aside from definitively ending a contract, a letter ending a contract can be used to provide notice if there is a problem (eg poor performance if services are being supplied under the contract); it gives the other business an opportunity to put things right by a certain date if they wish to avoid termination of the contract.
When and why Does a Contract End?
There are a variety of possible reasons that a contract between two businesses might come to an end, including:
➤ the contract is for a fixed term or project and naturally comes to an end
➤ the buyer (or seller) has found a new supplier (or purchaser) and needs to end the existing contract
➤ one party is unsatisfied with the performance of the whole or part of the contract by the other party, or
➤ there has been a breach of one or more terms of the contract
How Much Notice Needs to be Given for Ending a Contract?
The amount of notice which needs to be given will generally depend on the terms contained in any written contract.
If there are no express terms regarding notice periods, or in the absence of a formal agreement, it is implied that ‘reasonable notice’ should be given.
The meaning of what constitutes ‘reasonable notice’ will depend on factors such as:
➤ the degree of formality of the commercial relationship (eg was there a contract in place)
➤ the length of the business relationship
➤ any dependence on revenue or supply, and
➤ any common intentions, or commitments made, at the outset of the contract.
Furthermore
Certain material breaches of the contract (eg complete failure to deliver goods or services, or to pay an invoice within a reasonable amount of time) may give rise to the termination of the contract without notice.
What can I require the other party to do upon the termination of the contract?
Some contracts provide that, where there has been a minor breach, the offending party is given a chance to rectify the problem.
In this case, a letter ending a contract can allow for the termination to be canceled if the issue in question is satisfactorily addressed by a certain date.
Further advice
Ask a lawyer for specific scenarios where:
➤ there is no contract in place
➤ you are not sure whether the other party is in the wrong
➤ you want to make changes to the contract
➤ you are in the wrong
Other names for letters ending a contract
Contract termination letter.
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