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What is a Termination Letter?

A termination letter, or also called a contract termination letter, is a critical business document that will be scrutinized by an employee, especially one who feels that they have been terminated unjustly. Termination letters write the fact when an employee has been terminated or addressed for dismissal from his or her employment in a company in a specific period of time or temporarily. Although there are many reasons behind terminations and separations, it is important that the letter specifies any that may be used. The statements may vary depending on the situation such as poor performance, employee misconduct, probation, attendance, work layoffs, substandard service, and more. However, a detailed summary of the employee’s conduct of performance should be stated clearly to support the decision. Thus, it is highly encouraged to write termination letters with the help of legal counsel to safeguard the company and help promote or defend its decisions no matter the audience.

How to Create Termination Letters?

Termination letters are used to communicate with a well-reasoned and defensible decision to terminate an employee. It could start from a complaint letter, warning letter, and until the termination letter takes place. If properly written, your company has nothing to fear and much to gain from explaining the reasons for your decision to terminate someone. Here are the following steps for you to be guided.

1. Incorporate the Basic Information of the Business

The first thing that you must do is to incorporate the basic information of the company into the letter. Write the complete name of the company where the employee is working, the address, and the following contact details such as telephone number, fax numbers, or e-mail addresses. You can also incorporate your branding elements such as the logo and the company letterhead. Do not forget to include the date when the termination letter is made.

2. Provide the Information of the Recipient

For the second step, provide the information of the recipient to make sure that it is intended for the right person. The recipient's information includes the complete name of the recipient or the employee, his or her position title, name of the company where she's working, the company's address, as well as the contact information of the recipient. Include the employee's status report for you to track his or her performance. Make sure the spellings are correct, and the information is accurate to avoid miscommunications.

3. Elaborate the Purpose of the Termination Letter

For the third step, elaborate your main purpose in writing the termination letter obediently. Open the body of the letter with "Ms./Mrs." or "Mr." followed the recipient's last name. After greeting the recipient, point out the reason behind the letter. It should directly and factually state the reasons for the termination while conveying the final decision of the employer to terminate an employee with the help of the termination checklist. Make sure to keep the professional tone to keep the situation neutral.

4. Go Into Detail about the Dismissal

Your letter should also address administrative details once the reasons for discharge have been explained clearly from the previous step. Details include the collection of the final paycheck, continuation, and limitation of insurance benefits, company property listings to be returned, notifications and arrangements with the company regarding personal belongings, and other confidential recommendations that remain in place either it's a 90-day notice or permanent termination.

5. Close the Termination Letter

Lastly, close the termination letter with formal statements that will tell the recipient to keep in touch for more concerns and clarifications regarding the matter. Also, do not forget to close the letter by putting your complete name and signature at the bottom part. You can also make an acknowledgment letter for the employee who filed the complaint against the recipient.

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