Do you need sample employment termination letters that correspond to a variety of reasons? We got you covered. Template.net offers an array of termination letter templates which are professionally formatted. Terminating an employee is not a favorite task among employers. It is daunting and hard for them to look for the right words in order for the employee to comprehensively understand the situation.
Looking at a bigger picture, the process of terminating an employee is complex. There are a lot of factors to take into account. To lessen the burden, you can refer to our set of sample termination letters for your reference purposes. You can also find out more about causes of termination and other items in the checklists we offer.
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What Is a Termination Letter?
When one hear the word termination, it is associated with the cessation or stoppage of a certain transaction or process. In line with that, termination letters are used to formally and legally notify the personnel, employee, business partner, or any person that his or her services are no longer needed. There are various reasons behind every termination. It is subjective in nature. To learn more about the said term, here are some key fields of interest that makes use of termination letters:
- Employment. It is mostly associated with the employer/employee relationship. The employers are the given a right under their country’s laws to terminate the employment of a certain employee, provided that the grounds are clear and the standard procedures are followed. Employers must comply with the employment or labor standards in a certain jurisdiction as defined by their country’s labor laws.
- Lease agreement. It is also used by landlords in notifying their tenants of his or her demand for them to leave and vacate the leased premises, assuming that the landlord complied with all the provisions of the lease agreement. The landlord is required under law to give notice of lease termination to the lessee.
- Business partnership. Partnerships are legal entities entered into by two or more individuals with utmost fiduciary capacity and trust. In line with this, the partners are also given the legal right to terminate the partnership agreement at any time. No partner can be compelled to be a partner against his will. This is done provided that the procedures and laws on partnership are followed.
- Business agreement. In a contractual agreement, the business partners must agree beforehand the procedures in terms of termination. There is usually a service termination clause in a service agreement. The clause will provide the possible reasons that the contracting party can termination the contract. Under the law, breach of contractual obligation can also be a ground.
These are just some areas that termination letters are essential. You have to take into account that coming up with a termination letter is not just a means of formality but also required under law. In line with this, you may also use and check out our notice of termination samples, which provide you with ready-made documents so all you need to do is have your lawyer verify the document.
How to Write a Termination Letter
In drafting an effective termination letter, you must ensure that you have all the pertinent details and documentations. The letter would require that you identify the reason for the termination, substantiate such reason with documents as proof and then come up with a letter which is in accord with your country’s labor laws. Here are some basics in writing a termination letter:
- Prepare the needed documentation. In here, you need to identify the kind of relationship you need to termination. Is is about a business, employment, or lease agreement?
- Know and understand your laws. After consolidating the needed documentation, you have to check out some pertinent laws about the said relationship. This is subjective because the laws of each country may vary. You can consult with your legal adviser about this matter.
- Review the contract. After knowing the laws, you must go back to the main document that binds the said relationship. For instance in an employment setting, you must consider the employment contract. Contracts may include certain provisions pertaining the grounds for termination. In line with this, you can also check out our contract termination letter templates.
- Substantiate the ground and reason. This is the part that you need to gather evidence in order to prove that ground was violated by the employee, for example. Or if it is a company decision because of circumstances that are beyond the control of the employee, you must also indicate clearly the reasons for it.
These are just about the first part of the writing process wherein you are still consolidating your data and evidence.
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Actual Writing of an Employment Termination Letter
After knowing and understanding the situation and reasons for the said termination, you’re now set and ready for the actual drafting of the termination letter.
- Make use of the company or business letterhead. This is applicable for business and employment termination. For a simple lease agreement, the landlord can make use of his own letterhead. For instance, in an employment termination letter, you need to indicate that the said letter is personal and confidential.
- Make the employee understand and comprehend the change in the employment relationship. You can indicate here the reasons for the said termination. Also, you need to indicate the date that the said termination will be effective.
- If the termination was due to the poor performance or behavior of the employee, concretely lay out the grounds and the corresponding facts. You should cite pertinent data such as the employment performance review or other documents such as customer complaints.
- Include information about the when and how the employee will get the final pay. This is optional and depending on the employers if they will give the employee a separation or severance pay. It also depends on the reason behind the said termination.
- Indicate and remind the employee to return specified company property entrusted to them. You can insert here the terms on how the employee will turn over said company properties. This is also part of the standard procedure for clearance purposes.
- Remind the employee about some agreed stipulations in the contract. Even though the contract has been terminated, the employee must take note of pertinent clauses such as noncompetition or nondisclosure clauses. The employee can suffer legal consequences if he or she will violate the said clauses.
- Conclude the letter with positive parting words. You can express you utmost gratitude to the employee for the service he or she had rendered to the company.
- Signature. Ensure that the termination letter is duly signed.
- Attached other pertinent documents. You can also include other necessary documents that are needed for the said termination to prosper.
These are the basic parts of an employment termination letter. You can also check out our templates for a more graphical and specific examples. We also have employee termination letter samples that you can refer to.
Reasons for Job Termination
In an employment setting, it is inevitable that the employer terminates a certain employee. The reasons vary depending on the nature of the relationship and line of work. On the part of the employers, terminating someone is not that easy. It is also a daunting task for them. Whatever the reason may be, it is pertinent that they comply with the standard labor procedures. Here are some of the reasons based on consolidated research:
- Business Conditions. In a business environment, there are instances that the company will experience financial difficulties. The management may find ways and means to keep the company liquid and stable. Unfavorable business conditions may compel the employers to terminate some employees for economic reasons. Sometimes this is more of a cause beyond the control of the employee.
- Inadequate job performance. If the employee fails to comply with the standards and performance metrics of the company, this can also be a reason. However, the employer must ensure that they have also done their part in terms of employee assessment, evaluation, coaching, and training. Despite these interventions and the employee still fails to perform appropriately, then that’s the time that termination becomes a discretionary on the part of the employer.
- Unacceptable Behavior. If the employee deliberately violate company policies and code of conduct, then it is a ground for termination. Under the employment contract, employees bind themselves to follow company rules and regulation. That is why a violation of such amounts to a breach of contractual obligation.
These are just some reasons why employees are terminated. Termination is indeed inevitable in any working environment. You just have to find the right words to express them. In line with this, you can also check out our sample best termination letter templates.
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Types of Termination
Most of us, consider the term termination as a negative one. However, you have to take note that no business owner or manager loves the task of terminating. Termination can be a product of various reasons. It is not just referring to the involuntary termination. Here are some other types of termination:
- Retirement. This can also be a form of termination. Employees retire when they reach a certain age. For certain countries, the age of 65 is the usual retirement age. But for some it may also vary depending on the state laws.
- Resignation. This is a form of voluntary termination. This occurs when the employee feels that the position is no longer suitable for his or her growth. It could also be due to other factors such as family, career, or health reasons. If you’re looking for resignation templates, we also have some basic resignation letter templates for you.
- Abandonment. There are also situations that the employee simply abandon his or her work without giving notice to the employer. There are various reasons behind this. In this case, the employer must declare the position vacant for replacement purposes.
These are just some of types of termination that you should also take into account.
Employment Termination Checklist
Regardless of the reason behind every termination, there are tasks and procedures that the employer must take into account. Here are some of the things that must appear in your employment termination checklist:
- Notification to the Human Resource Department. In cases of voluntary termination, a notification must be sent to the human resource officer. Then, it must be disseminated to the other involved managers.
- Access termination. You must notify your network administrator or other appropriate person of the effective date and time of the employees termination. This is necessary for transition purposes.
- Return of property and deactivation of access code. The employer must ensure that the letter indicated that said return of company property and deactivation of the employees access codes and passwords.
- Exit interview. In here, the human resource officer must conduct a confidential exit interview with the terminated employee. This is done in order to clarify and clear some gray areas. It is also a way for the company to know their lapses.
Downloadable Termination Letter
If you are pressed with time and still having a hard time drafting your termination letter, then you can simply download our templates. To do this, follow the simple steps below:
- Search for the template that you wish to use by using a magnifying glass icon on the upper right corner for faster and easier searching.
- Template.net offers a variety of templates for you. You can simply scroll down and check out the list of templates.
- Click on the green Download button below the chosen template in order to start downloading your chosen template.
- Edit the template in order to suit your situation.
- Finalize and proofread your letter.
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