Types of Termination Letters and Their Functions

Whether you are a newbie or a seasoned entrepreneur, employer, or manager, you will have to work with your partners or third parties to help achieve your business goals. As much as building a good relationship is essential in the world of business, there are inevitable and unfortunate instances that turn your business relationship sour and you are left with no choice but to break off the contact with your customers, partners, or tenant for the betterment of your business. When this happens, you will need to write a termination letter to formally end the contract that legally binds both parties.

However, there are a lot of different types of termination letters and each one has a distinctive function. In this article, we will discuss the different types of termination and how to use them according to its function. We have also provided some sample termination letter templates which are available for free downloads and are easily customizable.

Employment Termination Letter

The employment termination letter is definitely one of the most common forms of termination letters that are used in companies. As what the term implies, it is used to terminate or end the contract between the employer and the employee. According to an article that is published at Wikipedia.com, “the termination may be voluntary on the employee’s part, or it may be at the hands of the employer, often in the form of dismissal (firing) or a layoff. Dismissal or firing is generally thought to be the fault of the employee, whereas a layoff is generally down for business reasons (for instance a business slowdown or an economic downturn) outside the employee’s performance.”

Circumstances When You Can Terminate the Services of an Employee

An employment termination, which is also widely known as a job termination or employee termination, is often issued when an employee fails to adhere to the expectations of the employers. While it is never easy to terminate an employee, the employer or manager is forced to break off the employer-employee relationship once they have proven that the employee continues to make no improvement to correct his or her erring ways. However, it is also important to make sure that the termination is legitimate and the legality of the termination process is satisfied to protect the company from a costly lawsuit that can be filed by the terminated employee.

Under the law, an employer can only terminate the job contract of the employee in three circumstances:

Below are some employee termination letter templates that you can download and use as references.

Sample Termination for Cause or Voluntary Resignation Letter



Voluntary Termination



Probationary Employee Termination



Staff Reduction Termination Letter



Job Termination Letter



Basic Employment Contract Termination



Mutual Agreement Termination Letter



Sample Employee Termination Letter with Notice Period for Free



Lease Termination Letter

A lease termination letter, which is also known as rental termination letter, is used to end or cancel the business contact between the landlord and the tenant. This type of termination letter usually provides a notice to the tenant that the lease arrangement is about to expired or has already expired. And since a lease termination letter should clearly provide and explain the reasons behind the termination of tenancy, it is advisable to seek the services of a qualified real estate lawyer.

Factors that can Cause Termination of Lease

Before a tenant is allowed to rent a dwelling unit that is owned by the landlord, he or she must sign a lease agreement that stipulates the terms and conditions that tenant needs to uphold and honor while inhabiting the property. Its purpose is to legally record the leasing time period, monetary details (monthly rental payment, late payment charges, and utility payment), and the essential information (personal and contact details) of both parties.

To serve a lease termination notice, you must make sure that you have followed the proper procedure and that you have enforceable reasons to cancel the rental contract. That is why when you caught the tenant violating any clause of the contract, then you have the right to serve the tenant a termination notice that you are canceling the tenancy. The following are possible grounds for lease termination:

However, if you think that the violation is minor, you should weigh whether the violation committed is worth to spend another time and effort finding new tenants to rent your property. If you think that the violation committed by the tenant is light and forgivable, you may let them off with a warning letter. In this way, the tenant will have a chance to correct or avoid the violation in the future. On the other hand, if you believe that the violation is serious and has been committed for a number of times, then you must consider serving an eviction notice to the tenant.

Consider looking at the following sample lease termination letter templates that are provided below. They can be downloaded for free and you can edit the contents using the proper software and match them to your personal purpose.

Program Lease Voluntary Termination Letter



Commercial Lease Termination Letter



Rental Termination Letter from Tenant Download



Farm Lease Termination



Printable Termination of Lease Obligation PDF



Sample Lease Termination Letter Free Download



Sample Business Lease Termination Letter



Lease Termination Agreement



Service Termination Letter

A service termination letter is used by one or two parties to formally end their service provision agreement. Whether you are terminating the services of a freelancer or a supplier, whatever your reasons may be, you must document it by writing a service termination letter. While there are business people who believe that there is no need to write a letter of service termination, writing one comes with legal significance and can protect your business from a potentially expensive lawsuit. As a professional business person, you do not just want to end any service provision without formally notifying the other party. It must be kept in mind that the objective for writing a service termination letter is to nullify any service agreement in a professional and respectable way. You cannot just end any service agreement without any justifiable reasons. Such reasons should be based on legal relevance.

Key Things to Remember When Terminating a Service Agreement

We all know that all contracts are considered to be legally binding agreements between parties that engaged in certain types of business together. In the business world, the role of a supplier, who provides all the necessary materials for your day-to-day operation, is crucial, especially if your business belongs in the manufacturing industry.

Finding a reliable supplier that offers a competitive price is crucial for the success of any business. However, service contract between you and the supplier must be broken or discontinued when the latter fails to meet what was required of them. Let us take for instance that the supplier is constantly delayed in delivering supplies to your company. When this happens, the entire production of your business is gravely affected and there is a huge possibility that you will lose your clients because you are not able to meet their demands. Moreover, it is a smart move to consult a lawyer before ending a service contract.

Found below is a short list of reasons why a service agreement can be terminated:

Do not hesitate to browse through the selection of service contract termination letter templates that found below and choose the ones that work best for your purpose.

Download Termination of Services Letter to Customer



Vendor Notice of Termination Letter



Vendor Contract Termination Letter



Vendor Contract Termination Letter



Termination of Vendor Services Letter Template



Notice of Termination of Service



Editable Security Service Termination Letter Template Word Doc



Download Internet Service Termination Letter Template Example



Termination of Services Letter to Client Editable



Business Partnership Termination Letter

Two heads are always better than one that is why in the world of business, you will need someone who you can work hand-in-hand in managing a company. A strategic partnership can be considered to be one of the most vital factors for the growth and success of small and/or start-up business. Even if you have great and brilliant business ideas in mind, there are times when you will need someone who will guide in executing your ideas so they may come into life. In the fierce competition in the business world, you will need a Batman or Robin who will help you stand out from your competitors by boosting the brand of your business and implementing your marketing strategy so that your target customers will get to know your company, as well as your products and/or service, better. Another reason why a partnership is important is that you will not only increase your customer base but also you will be introduced to new products and/or services, have access to a new market, and boost the loyalty of your customers, both new and existing ones.

As much as you want to make your business partnership last for years, your relationship with the other parties can turn sour and you have no choice to but to terminate the partnership contract, especially if they other party becomes irresponsible and has caused negativity on the entire organization.

Common Causes for Ending a Business Partnership

While entering a partnership comes with a lot of great benefits, there are times when misunderstanding and miscommunication can cause parties dissolve their business. Although most of the parties want to establish a long-term business relationship with one another, there are some instances when the partnership is not able to withstand the pressure of time and problems associated with running a company. That is why it is highly important for business partners to develop an exit strategy so that when one party decides to end the partnership scheme, it will not have a grave impact on the integrity of the business and its ability to continue its usual daily business operation. Found below are some of the most common reasons for terminating a business partnership agreement.

Since writing a business partnership termination letter may sound complex, consider checking the following partnership termination letter templates that are given below.

Sample Partner Termination Letter Template Word Format



Free Sample Partnership Termination Letter Template PDF Format



Final Thoughts

No matter what your purpose for writing a termination letter is, you must make sure that you have followed all the legal step in canceling a contract or otherwise, you and the reputation of your company will suffer the impact of a lawsuit, and not to mention the effects it can bring financially. If you are unsure about the termination of another party’s contract or agreement, make sure to consult a qualified lawyer so that the correct protocol and legal guidelines in contract termination are fully satisfied.

Now that we have reached the end part of this article, do not hesitate to download and use all the sample documents. You may also check out our termination checklist templates, agreement forms, and termination notice. These templates are professionally created in PDF and Word applications. What is even great is that they all available for free download, easy to print and are highly customizable according to your unique preference. You can make it as a professional reference and incorporate your thoughts when creating different types of termination letters. Should you want to make changes on the parts of the letters, do not hesitate to do it. So what are you waiting for? Browse through our vast library of templates and download them for free!