How to write a termination letter

Terminating an employee can be stressful for everyone involved. This step-by-step guide walks you through writing a termination letter.

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How to write a termination letter

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Terminating an employee can be stressful for everyone involved. As an employer, it’s a necessary part of business.

If you’re considering terminating an employee, it’s imperative that you document the event with a written record. That’s where a termination letter comes in. A termination letter confirms the individual’s end of employment and outlines the necessary information the person needs to know to move forward.

This will serve as an official record of the layoff or firing in case the employee files for unemployment, applies for another position within the company, lists you as a reference (surprisingly, it happens), or files a lawsuit against the company for wrongful termination.

Before sending a termination letter, employers should meet with the employee face-to-face. Discussing the termination will make the process easier, and the employee won’t feel blindsided about being let go.

What to include in a termination letter

Basic employee information

Include the employee’s information, including full name, employee ID, position title, company name, name of person handling the termination, the date of termination letter and termination date (if it is different from the date of the letter).

Reason for employee termination

There are a number of reasons why you could be letting an employee go ⁠— the company could be going through a staff reduction, the employee is consistently late to work, etc.

Stating the reason for the termination will serve as a record and help the employee know why they are being laid off or fired. If the employee is being terminated for cause, be sure to include if the employee was given warnings, the dates of the warnings and if they were written or verbal.

Return of company property

If the employee has company property in their possession ⁠— like a cell phone or building pass ⁠— make a note of it and ask for its return.

Vacation time, sick time

If the employee has accrued any vacation, sick days, or PTO, include whether they will be paid out for unused time. Depending on what state your business is in, you may be required to pay out unused vacation time. Federal law does not require employers to pay out unused sick time.

Final paycheck and severance

In the termination letter, include information about the final paycheck: when it will be issued, if it will be mailed to the address or picked up at the office. Consider including the final paycheck at the time the employee signs the termination letter, that way you can officially end employment.

It is up to the company’s discretion if they will include severance pay — this is usually outlined in the employer’s handbook. Under federal law, employers are not required to include severance pay, but many companies opt to do so. The amount is usually based on how long the employee has worked for the company.

Health, 401(k) and other benefits

If the employer provides benefits, like health insurance or retirement savings, include information on how this will be handled. Important information to include is when the health benefits run out, and information on how to continue coverage through the group plan.

If the employer has a 401(k) or another type of retirement plan, including information on where they can access their retirement savings.

Am I required to write a termination letter?

There’s isn’t a federal law that mandates employers must provide a termination letter, but some states do require a written notice of separation.

Those states are: Arizona, California, Connecticut, Georgia, Illinois, Louisiana, Massachusetts, Michigan, New Jersey, New York, and Tennessee.

Am I required to give a reason for the termination?

Again, there is not a federal law that compels businesses to provide a reason for the termination, but if you’re terminating with cause, it is wise to document the reasons for the termination and the supportive reasoning. This will help guard your company against a lawsuit.

What not to include in a termination letter

Sarcasm, inside jokes, informal language — you may have had shared a laugh in the office, but you should not make light of a situation where an individual is losing a job. Keep the language professional and to the point.

Below, you’ll find a basic termination letter you can keep on file.

Sample termination letter

How to write a termination letter

Sample termination letter (text)

[Date letter is written]

This letter is to confirm our discussion that your employment with [Company Name] will end as of [Termination Date].

As discussed, the reason behind the termination is because of [List reasons of termination].

You will receive [List compensation the individual will receive, including final pay and severance].

Payment for unused vacation time will be included in your final paycheck, which you will receive [Include information on when and how they will receive their paycheck].

You are required to return [List company property employee has in its possessions].

Your health care benefits will [List how long health care benefits will last]. You will receive a separate letter with information on The Consolidated Omnibus Budget Reconciliation Act (COBRA) continuation of group coverage.

Your 401(k) plan is administered by [Name of fund administrator]. You will need to update the company with a current mailing address so we can send a W-2 form and follow-up COBRA and 401(k) information.

Also, keep in mind that you have signed a confidentiality agreement. Please review the attached copy.

Please let us know if we can assist you during this transition.

Content Manager and Career Expert

How to write a termination letter

Firing an employee isn’t easy, but it’s a necessary step if they are having a negative impact on the organisation. The reasons for dismissal can vary from poor performance to misconduct and general layoffs, but what’s essential in every situation is a well-structured termination letter.

To ensure you don’t end up in legal battles down the road, the letter needs to be written in a specific way, and it should outline all the details of the termination and what’s to follow.

So, to make sure you’re following the correct protocols, read through our step-by-step guide (complete with a handy sample) to help you write your own employment termination letter.

Structuring Your Letter

As this is an official document, you must stick to grammatical and formatting rules to ensure that the information is presented in a professional manner.

Your letter should typically contain the following elements:

  • Sender’s address. Your letter should include the company’s address listed in the top left-hand corner of the page, or in the top right-hand corner in US letters.
  • Include the official date that the letter was written beneath the recipient’s address.
  • Recipient’s address. The employee’s address should be listed a few lines underneath the company’s address, aligned to the left of the document.
  • As you are already on a first name basis with the employee, it’s fine to address them by their first name, for example: ‘Dear John’.
  • Opening paragraph. In the opening paragraph, you should first explain that it’s a letter of termination and then supply whether it’s effective immediately or if the employee in questions needs to work a specific notice period.
  • Within the body of the letter, you should cover everything related to final pay, paid time off, pension, healthcare and anything else that would affect the employee after their termination.
  • Final paragraph. The steps to follow should be listed in the final paragraph. For example, you can ask the employee to return all company property to the HR department (including keys, telephones, laptop and passwords).
  • The ending of the letter won’t be incredibly positive (how can you really turn a termination into a positive?!), but do make it a point to inform the recipient that you are there in case they have any questions.
  • Your name and signature. As you will need a printed copy of this letter, opt for a handwritten signature, and be sure to leave space for the employee’s signature at the bottom of the letter.

Tips for Writing Your Letter

1. Consult Your Legal Team

If you’re unsure about how to handle the termination, what notice to give the employee and whether you should offer a severance package or not, it’s a good idea to consult your legal team before you make a decision. If it’s a layoff, for example, there may be specific regulations that you need to be aware of.

It’s important to avoid wrongful termination as this can lead to endless legal battles further down the line, and it can have an even bigger effect on your organisation. Essentially, you need to ensure the termination is in line with the employment contract and that it is done fairly.

2. Discuss in Person Beforehand

It’s unfair to advise the employee of their termination without having a verbal conversation beforehand. You need to explain the cause of their dismissal and allow them the opportunity to voice their thoughts and feelings.

3. Include all Evidence for the Reason of Termination

To support your decision for firing the employee, you’ll need to include all evidence to support your claims. For example, if the employee has been on a performance improvement plan (PIP) and has received written warnings, then this moment would have been leading up for a while, and you will have ample evidence to support your decision.

Likewise, if the employee has gone against the employment contract by verbally abusing someone or destroying company property, you are entitled to fire them on the spot. That said, you should supply any evidence of their poor behaviour when delivering the termination letter.

4. Verbally Describe the Steps to Follow

Although the process will be described in detail within the termination letter, it’s important to also verbally discuss the steps that will follow. For example, you could instruct the employee to pack up their personal belongings and leave the building as soon as your meeting is over.

You can also explain what will happen with private pension schemes, healthcare and other benefits that the employee was receiving. And, if possible, you could provide a final paycheque or supply instructions on when they will receive their balance.

How to write a termination letter

Let’s face it, as someone who works in human resources, you know that finding the right employees is hard. Sometimes you may need to fire an employee and write an employee termination letter. Find out more about what the letter is, why you should write it and some examples and tips.

What Is an Employee Termination Letter?

When terminating an employee, you must have a written record of this. That’s when it will be useful for you to write a termination letter. The letter must confirm the termination of employment. It must also contain any other information the employee needs to know, such as the end of health coverage. We will provide some sample termination letters later on for you to get an idea of how they should look.

Why Write an Employee Termination Letter?

You may need to terminate an employee due to poor performance, stolen company property, or other reasons. In this case, you would be firing them. Or you may simply have to let employees go due to restructuring and layoffs.

Either way, employment laws require you to go through the formal processes for this. That includes meeting with the employee to discuss your decision, then writing the letter of termination and sending it to them.

What to Include In An Employee Termination Letter?

There are many things that you should include in an employee termination letter. Take a look at the following:

Personal Information

The employee’s details should be in the letter. This includes their name, position, company name, and termination date. It should also contain the name of the person dealing with the termination. That maybe you as the HR representative, their manager, or someone else.

Leave

In the letter, you must include how many sick days and vacation days the person has left. You also need to explain whether you are going to pay them out for these days. Depending on which state your company is in, you may not need to pay this. Check your local laws to find out.

Warnings

If you are terminating the employee due to poor performance or misconduct, you should have given them warnings in the past. In the termination letter, include the dates of these warnings and whether they were verbal or written.

Reason for Termination

As you likely know, you need to give a reason for termination. It could be company restructuring or that the person perpetually misses deadlines. Whatever the reason, you need to include it in the letter. This creates a record that you can come back to later if you need to.

Benefits Ending

If your company offers benefits such as health insurance, you need to include information in the letter on when these benefits end. For example, they will need to know when their health coverage will end.

Final Pay

The last thing to include is information on the employee’s final pay. They need to know when and how they will receive this. Also, include details of severance pay if you are offering this.

Tips and Tricks

  • Leave out any familiar language including jokes. When someone is getting terminated, this can come across the wrong way.
  • Be thorough. It’s best to include all the necessary information so that they don’t have to come back to you with questions.
  • Before writing, collect all relevant information. This includes any relevant documents you need to mention in the letter (401k, health insurance).
  • Always consult a lawyer to find out what is required in a termination letter in your state.

Example Employee Termination Letters

Below, we have included 2 termination letter templates. These can serve as examples for when you are writing an employee termination letter. Check out the letter samples below:

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Sample Letter 1

Dear [Employee’s full name]

This letter is to confirm the termination of your role as [Position] with [Company]. As discusses in our meeting on [discussion date], your employment with us ends on [termination date].

As previously explained, this termination is due to [termination reasons]. On [date of final pay], you will receive your final pay. This includes [details of any sick pay, vacation time, or severance that you will pay out].

You are required to return any company property that is in your possession. Your health care plan will end on [date of health care ending]. After this time, you can continue with the group coverage, information for which is attached, or you can find another plan. Your 401k is administered with [401k company].

Please review the attached copy of this letter and let me know if you have any questions.

[Name and signature of employer]

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Sample Letter 2

Dear [Employee’s full name]

Across the last few months, [Company] has experienced significant financial setbacks due to the fluctuating market. We have tried to find innovative solutions to combat these issues. However, we are now in the process of needing to restructure and lay off staff due to these struggles.

We have decided that we need to lay off [number] positions. It is with sincere regret that I inform you that yours is one of these positions. Your role as [position] will end on [termination date].

Within the next 3 days, HR will be in touch with you to set up an exit interview. During this meeting, the cessation of your employee benefits will be discussed with you, as well as your final pay.

We have appreciated all the hard work you have done for our company over the years.

While terminating an employee may be tough, writing the termination letter is the easy part. You can use one of these two templates to get you started.

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While terminating an employee may be tough, writing the termination letter is the easy part. You can use one of these two templates to get you started.

Running a business is hard enough, and it only becomes more uncomfortable when you need to terminate someone.

In that uneasy situation, we want to help make it a little less painful. Here,
we’ve provided 5 sample letters of termination. With an easy template you can follow, we hope this stressful position becomes a little more bearable.

Disclaimer: Before using following templates it is highly recommended to consult with a lawyer or human resource consultant who will ensure you have all necessary written and signed documentation in place that will protect you in case of a lawsuit.

1. Termination with a cause

It can be very distributive and hard to conduct business if one of your employees is always late, which happens to be one of the number one reasons for termination.

Or, if when there are deadlines to be met and an employee is found skimming through Facebook or Instagram.

Also, I’m sure it’s disappointing to receive a call with a ridiculous reason for not being able to come to work. Or worse, they had a legitimate reason, but then you discovered on Facebook they were off on vacation.

If any of your employees are not contributing appropriately, make sure first to give them a warning and clear preferably written guidelines to improve. They should have the opportunity to redeem themselves. If not, then it’s time to say goodbye.

In a comfortable private setting, have “the” talk with them. Explain that the behavior that has continued to disrupt the workplace, even after previous warnings, has lead to this final decision.

The meeting should be straight forward but personable. Remember, we’re all humans, so state the facts without demeaning them. You tried your best to help them, so it’s not your fault they choose not to take it.

So, whether your employee is continually late to work, browsing the internet inappropriately, or gave fake excuses for sick days, you can use following template to send them on their way.

[Name and address of your company]

Dear [Employee Name],

We regret to inform you that as of [termination date], your employment with [Company name] will end.

Your employment has been terminated due to [all reasons for termination].

Despite written warnings issued on [date] and signed by you on [date], you have failed to correct your behavior by [date]. Your failure to do so have resulted in your termination.

Your final check (along with) [left over vacation days, severance, or any other remaining benefits] will be issued on [Date].

Your health benefits will still be covered until [amount of
time].

Please return [list of company property] by [date].

Also, keep in mind that you’ve signed [list of non-disclosure/ no-solicitation agreements].

Feel free to contact [Name] with any questions or help with your transition.

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A lease termination letter, also known as an end of lease letter, is a written notice provided to the tenant by the property owner or manager to inform them that their lease agreement is about to expire and will not continue after a set date (determined by the landlord).

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 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.

How to Write a Lease Termination Letter

If the lease between you and your tenant is coming to an end and the tenant chooses not to renew their lease, then it is standard procedure to send them an end of lease letter as a reminder. If your tenant chooses to break the lease, they will be required to send you a notice to vacate letter, and in return, you may send an end of lease letter as confirmation. If the tenant violates their lease and you have to evict them, you would not be sending a lease termination letter, but rather an eviction notice.

Your lease termination letter should include:

  • Your name
  • Name of tenants
  • Today’s date
  • The reason for termination
  • The end of lease date
  • Move-out process instructions
  • Copy of the move-out checklist
  • A request for tenant’s new address
  • A request for date and time of walk-through inspection

Begin the letter by writing your name and your contact information (including your mailing address) in the upper left-hand corner. This should be followed by today’s date and the name and mailing address of your tenant. Address the letter to your tenant and give them the reason for this letter in the first paragraph, as well as the start and end dates to the lease.

The second paragraph should mention the already completed move-in walk-through. You should have given them a copy of this at the beginning of the lease, but just to be sure, attach another copy for their records. Follow up this sentence by requesting to schedule a move-out walk-through (also known as a final inspection).

Afterwards, request your tenant’s new mailing address in the case of returning the security deposit (if there are no damages or rent left unpaid). Finally, thank your tenant for renting from you, followed by your signature and full name (printed).

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 Phone Number or Email]

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.

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.
  • Don’t forget to include the date on 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.

One of the most important yet stressful tasks is terminating employees. A termination letter can make this easy. Read on to find how…

How to write a termination letter

How to write a termination letter

As part of being an employer being in business, terminating employees is a necessary task although it can be quite stressful to go through the transition of letting one employee go while having to fill their vacancy. It is just as important a process as hiring and onboarding. Firing/Completion of term and rehiring are not always easy. But there are professional ways to do it that can reduce the trauma for everyone involved in the process. An employee is terminated either when their service period comes to an end in case of contact-based employment, or they are leaving the current job for better prospects or they are being fired from the company. In either of these cases, it is important that the exit formalities be completed properly and that there is proper documentation for every procedure. A termination letter is just one of the exit procedures that marks the end of the employee’s journey with the organization due to the reasons mentioned above.

If you are an employer considering terminating an employee, it is important that you have a written record of everything. A termination letter serves the same purpose. It confirms the end of an individual’s employment with the company and brings forth the important information that they need to know to be able to move forward. This serves as the official record for the layoff or firing.

The termination letter provides reasons for the involuntary turnover, lists the next steps that the employees need to take, and brings forth any compensation or benefits that they will receive. It is also known as a letter of separation, a notice of termination of employment, or a contract termination letter.

Termination letters are usually used when informing someone that their employment with the organization is ending. They are mostly required by the company’s internal HR policy and also serves as a courtesy to the leaving employees. The following are generally the circumstances when they are issued:

  1. Without cause: Without cause refers to employment dismissals related to company downsizing and other larger market factors, unrelated to specific employee performance or fit within the company.
  2. With cause: With cause refers directly to an individual employee’s performance and behavior.
  3. End of a business contract: This letter is used to end business relations with another party you previously entered a contract with.

Termination letters are important as they can help you maintain a good reputation for your company, show professionalism, and provide a record of events for legal reasons, though most of the employers are not required to provide one.

Providing a letter of termination is a more compassionate and respectful way to dismiss employees. Giving employees notice allows them some time to handle external situations that will change with their unemployment. It also gives employees a full understanding of the details of their dismissal. It’s important to continue showing respect for an employee and assist them with their transition. This fosters a better relationship between the employee and the company, providing an opportunity for them to return in the future.

While writing a termination letter, the following are the important points to be kept in mind and included in the letter.

1. Basic Employee information

Include the employee’s basic information, such as full name, employee ID, contact details, position title, company name, name of the person handling the termination, the date of the termination letter, and termination date if different from the date of issuing the letter.

2. Reason for termination

There are a number of reasons why you could be letting an employee go. Stating the reason for the termination will serve as a record and help the employee know why they are being laid off or fired.

3. Return of company property

If the employee has company property in their possession — like a cell phone or laptop — make a note of it and ask for its return.

4. Terms of employment

Do you have a contract with the employee? Did you make any verbal promises at the time of hiring? Make sure to consider all the facts that were stated in their offer letter as part of terms of employment.

5. Performance history

Termination should never come completely out of the blue. By the time you hand someone a termination letter, it should be a mere formality. Employees who are falling short in some way should have been informed of that and given a chance to improve, possibly through a formal performance improvement plan. Doing this not only gives employees every chance to succeed, but it also gives your company a record to fall back on in case of legal challenges.

6. Ground for dismissal

If you have a clear case for firing, write the reasons down in factual terms. Reference relevant employment policies and specific performance measures to support your decision.

7. Separation agreement

You may want to prepare a separation agreement releasing you from future legal claims in exchange for severance pay or other consideration. Consult with an attorney to ensure that your agreement is legal before offering it. These agreements are a way to ease the pain of separation, not to stifle legitimate complaints of unfair treatment.

8. Vacation and Sick time

If the employee has accrued any vacation, sick days, or PTO, including whether they will be paid out for unused time.

9. Final paycheck and severance pay

In the termination letter, include information about the final paycheck: when it will be issued, if it will be mailed to the address or picked up at the office. Consider including the final paycheck at the time the employee signs the termination letter, that way you can officially end employment. It is up to the company’s discretion if they will include severance pay — this is usually outlined in the employer’s handbook. The amount is usually based on how long the employee has worked for the company.

10. Off-Boarding Tasks

Just like on-boarding, mention the off-boarding tasks that need to be completed. Make sure to take the exit interviews and complete all formalities once and for all when the employee is leaving the company.

11. Include HR information

It is important to include relevant information regarding the immediate supervisor and the hiring process and the details about the Human Resource department of the organization so that the employees are aware of the various policies of the company.

12. End with good wishes

Last but not the least, end your letter with good wishes for your employee, wishing them success in all their future endeavours. Treating your employees nicely and warmly always works wonders in keeping relations good no matter what the reason of termination.

You will readily find samples all over the internet. But it works wonders to create your own and curate it according to your needs and specifications. Employees are the assets of your organization and it is in the best interest of the organization to treat them as one.

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Example termination letters to fire an employee for attendance problems

How to write a termination letter

Tom Grill / Photographer’s Choice RF / Getty Images

These example termination letters notify an employee of their employment termination because of attendance problems.

Use these termination letters as an example when you write your own termination letters.

You can send a termination letter to the employee following the termination meeting with return receipt requested, or you can hand the letter to the employee at the end of the meeting. It should be printed on company stationery with the official signature of the employee’s manager.

Under normal circumstances, the manager or supervisor and a representative from Human Resources will hold the termination meeting with the employee. This meeting to terminate the employee for cause should occur as soon as the organization has the information, documentation, and proof necessary to fire the employee. The letter of termination summarizes what was said at the meeting.

Example Termination Letter for Cause

This is a sample termination letter for a cause. You can download the termination letter template (compatible with Google Docs and Word Online) or see below for more examples.

How to write a termination letter

Example Termination Letter for Cause (Text Version)

18361 Plymouth Highway

Plymouth, MI 48170

This letter confirms the actions taken at our meeting today. Your employment with Martin-Spencer Manufacturing is terminated because of your attendance, effective immediately.

Your employment, as discussed during the termination meeting, is terminated because your attendance violates company expectations and policies. You have received three prior written warnings, that you signed and acknowledged. These warnings are in your personnel file.

You have also been counseled repeatedly by your supervisor and given unpaid days off of work per our progressive discipline practices.

At this point in time, you have missed 20 more days of work than your accrued PTO allows which has severely affected our shipping schedule and customers. You were offered an unpaid leave of absence which you refused.

We also offered to make accommodations if there were circumstances affecting your attendance. You refused any accommodation.

You have received your final paycheck* at the termination meeting. We have also received your gate entry card and your company supplied equipment. You have cleaned out your locker and should have no more personal items on our premises.

You will receive a letter from Human Resources with your final benefits information including the opportunity to extend your group health insurance through the Consolidated Omnibus Budget Reconciliation Act (COBRA).

Please keep the company informed of your contact information so that we are able to provide the information you may need in the future such as your W-2 form.

Please let us know if we can assist you during your transition.

Name of Manager or Company Owner

Second Sample Termination Letter for Cause

Here is a second example of an employee letter that terminates the employee’s job because of her attendance. In this sample letter, the employees’ late arrivals are putting production in jeopardy.

We met with you today to have one final discussion about the difficulty that you have demonstrated in getting to work on time. Your manager and I are disappointed that you saw no possibility that you would be able to improve your attendance.

On a manufacturing assembly line like ours, there is no way to produce our products unless every station is manned. Each subsequent station must receive the product from the prior station. When you are late, we have to ask another employee to work two stations. This cuts our assembly line production and forces our customers to wait for their products.

We have held two earlier discussions with you that were both followed up with a written warning. On both of those occasions, you said that you’d try to do better. This has not happened. You’ve been late to work four days in the past two weeks.

We also inquired about any possible problems that could be contributing to your tardiness and you told us there were no problems to share.

You will receive your final paycheck* on the normal payday, next Friday. You can pick it up or we can mail it to your home on request. We collected your gate entry card at the termination meeting. Following our meeting, you cleaned out your locker and so you should have no more personal items on our premises.

You will receive a letter from the Human Resources department with your final benefits information including the opportunity to extend your group health insurance through the Consolidated Omnibus Budget Reconciliation Act (COBRA).

Please keep Human Resources informed of your contact information so that we are able to provide the information that you may need in the future such as your W-2 Form and your COBRA letter.

*Please note that laws regarding the final paycheck may vary from state to state and country to country so make sure that you are up-to-date on those appropriate to your location.

There are times when business arrangements and contracts no longer serve their purpose. If this is the case, the business may want to terminate the agreement or contract.

There are a few guidelines to follow when writing a letter for termination of services, so any possible damages will be reduced to the minimum.

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The format of the letter is similar to a letter of request because the intention is to request the end of the business agreement.

Some circumstances that give a business or individual the right to terminate a business agreement are:

  • An act of God that made it impossible for one party to fulfil the contract
  • Fraud or false representation either intentionally or unintentionally
  • Breach of contract where one party fails to comply with the contract
  • One party lacks the capacity to fulfil the contract
  • A contract for illegal purposes
  • A mutual mistake concerning a pertinent fact on the contract

Before sending a termination letter, it is recommended to read the contract carefully to see if there are any provisions for cancellation.

For example, if the contract states that it can only be cancelled if the service is poor, the termination letter should not state that the service was good.

Clearly State Reasons For Termination

Whatever the reasons that allows for cancellation, the letter should clearly state how the sender’s company is complying.

For contracts that are more than $10,000 in value, there will be a termination clause that sets the procedure for terminating the contract. This is true for long-term and automatically renewing contracts too.

It is recommended to try to terminate the business contract by mutual agreement. If both parties agree, they are free to terminate the contract.

If all parties have fully performed their obligations according to the contract or business agreement, then the contract is automatically terminated and no letter is necessary.

The letter should be clear and precise. The wording should not leave any room for misinterpretation. The sender may mention the reason for the termination, but the tone should be formal and neutral.

This isn’t the place to complain about poor service or unacceptable pricing or to criticize the company.

If there are any outstanding payments to be made, the letter can request a final bill, or if they know the amount, they can enclose the payment.

Going Out Of Business

If the letter for termination of services is intended to inform customers that the business is closing permanently, a different type of letter should be sent.

It is important to tell people that a business is closing rather than simply shutting down with no explanation.

This letter will serve to announce the closure of the business and give the owner the opportunity to thank customers for their business, thank suppliers for their service, explain why the business is closing and give advanced warning to service providers.

The letter should include:

  • The date the business will close
  • Communicate any actions such as pay outstanding bills
  • Give customers a place to direct questions

It is recommended to maintain a professional and positive relationship with customers and service providers whether a contract is being terminated or a business is being closed.

In either case, it will be easier to begin again if there is a chance in the future to do business with these people.

Here is a sample letter for termination of services for cancelling a business agreement or contract. It should be written in standard business-style format and on the sender’s company letterhead.

It should be sent by certified mail, so the sender has proof that the letter was received on a specific date.

If the contract is included, it should be a copy with the pertinent part highlighted and not the original document.

All documents and correspondence connected with the termination should be kept for at least one year after termination.

Sample Letter For Termination Of landscaping Services

Your Name
Your Title
Company’s Address
City, State, Zip Code

Receiver’s Name
Receiver’s Company
Receiver’s Address
City, State, Zip Code

RE: Termination of Contract Ref. Number NUMBER

Dear Name of Receiver,

This letter is to inform you that we are cancelling your services for maintaining the landscaping around our commercial building at ADDRESS.

According to the contract signed on DATE, cancellation is allowed if your service is not performed regularly each week.

It has been three weeks since you have attended to our gardens. I have enclosed a copy of our contract with you with the condition for cancellation highlighted.

If you have any questions, I can be reached at 555-123-4567 or at [email protected] I hope to receive confirmation of this letter within 10 days of you receiving it and to clear our account by the end of the month on DATE.

Thank you for your prompt attention.

Your Signature
Your Printed Name
List of Enclosures such as copy of contract with pertinent points highlighted

Sample Letter For Termination Of Mobile Services

Name of Customer
Address of Customer
City, State, Zip Code

Name of Mobile Phone Company
Address of Mobile Phone Company
City, State, Zip Code

RE: Cancellation of Mobile Phone Service Ref. No. NUMBER

This letter is to officially inform you that I am cancelling my mobile phone service at the end of the term of my current contract. The date is DATE.

I have examined the contract and am following the procedures recommended there for cancellation.

If I don’t receive written response from you within 30 days, which is DATE, I will consider that you agree with my cancellation request.

If you have any questions, I can be reached at 555-123-4567 or at [email protected]

Customer’s Signature
Customer’s Name Printed

sample letter for Termination Of Accounting Services

Name of Customer
Address of Customer
City, State, Zip Code

Name of Accounting Services Company
Address of Accounting Services Company
City, State, Zip Code

RE: Termination of Accounting Services Ref. No. NUMBER

This letter is to officially inform you that I am terminating my a ccounting services at the end of the term of my current contract. The date is DATE.

I have examined the contract and am following the procedures recommended there for termination.

If I don’t receive written response from you within 30 days, which is DATE, I will consider that you agree with my termination request.

If you have any questions, I can be reached at 555-123-4567 or at [email protected]

Customer’s Signature
Customer’s Name Printed