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Do you have a problem employee who you are considering terminating? No employer likes to draft a letter of termination, but it often becomes a necessity. In this article, we will explore ways to use a free template to draft a professional termination letter.
What is a termination of employment letter?
A termination letter is a professional document that is given to an employee who is being dismissed from their current employment. The letter outlines the various reasons for the dismissal. It also provides an overview of any steps that the employee must take. In addition, the termination employment letter can also cover any possible benefits or compensation that the employee is entitled to receive.
Download this template at Lawpath
When should I use a termination of employment letter?
Employers use termination letters when someone's employment is ending. The letter is usually just an act of courtesy to the employee. However, some Human Resource policies within a company require the letter of termination as one of the steps needed to effectively dismiss an employee.
What does a termination of employment letter include and not include?
A termination of employment letter should include the following:
- A reason for the termination of employment
- Any evidence that has been used to factor into the decision of the discharge (this is especially true if there is a direct cause for the termination).
- List information regarding any payroll payments or benefits
- Employee's name
- Company name/logo
- Name of supervisor or manager overseeing the termination
- Date of termination
- Any verbal or written warnings that were given to the employee before termination
- List of company equipment that is to be returned upon termination such as keys, laptop, company vehicle, etc.
- Details about how the employee can obtain their final paycheck, severance pay, or benefits
What not to include in a termination of employment letter?
Depending on the area where the termination is taking place, some employers are not under any legal requirement to provide a reason for the termination. In such instances, an employer does not need to list a reason on the letter for terminating the employee's employment.
How effective is a termination of employment letter?
Termination letters are an effective way to outline why an employee is being let go from the company. Often the employee might be upset or angry so providing a letter allows them to look over the reasons and details which avoids further questions. All information about the termination is provided in a very concise letter so there is no reason for a supervisor to have to answer lengthy and often uncomfortable inquiries about the decision.
Do I need a lawyer for a termination of employment letter?
You do not need a lawyer to draft the document. In fact, you can use many free templates available online to guide you through the process of completing the basic termination of employment letter.
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How do I write a termination of employment letter?
Below is an outline of how to write a termination of employment letter:
- Date the letter is created
- Employee's complete name
- The body of the letter outlines the reason why the company is terminating the employee's employment.
- Provide the date the termination is effective
- List reasons for termination
- Outline any actions such as a warning that were provided before the termination
- Add any evidence used to decide to terminate employment
- State that the decision to terminate is not reversible
- List the compensation that the terminated employee will receive such as pay, unused leave, severance, or insurance benefits
- Explain how the employee can receive the compensation owed
- Create a list of all items that must be returned to the company such as keys, laptop, or company vehicle. List a date the items must be returned by.
- Provide contact names, such as the HR contact number, if the terminated employee has any questions about the process.
- Signature of the person handling the termination
Where to get free legal documents and templates like termination of employment letter
Below are links to sites where you can obtain free legal documents and templates such as a termination of employment letter. Keep in mind some sites require you to sign up to get the template.
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