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Employment Termination Letter template

A termination letter formally tells an employee that their employment is ending, and confirms the effective date, final pay, benefits, return of company property, and next steps.

Replace everything in [BRACKETS], export to PDF, then send it for signature.

1. Letter Details

[COMPANY NAME] [COMPANY ADDRESS] Date: [DATE] To: [EMPLOYEE NAME] [EMPLOYEE ADDRESS] Subject: Termination of Employment Dear [EMPLOYEE NAME],

2. Notice of Termination

This letter confirms that your employment with [COMPANY NAME] as [JOB TITLE] will end effective [TERMINATION DATE] (the "Termination Date"). [OPTIONAL: This follows our meeting on MEETING DATE.]

3. Reason for Termination

[CHOOSE AND ADAPT ONE: Your position is being eliminated due to REASON, e.g. restructuring. / Your employment is being terminated for the reasons discussed with you on DATE, namely BRIEF FACTUAL REASON, following PRIOR WARNINGS OR PROCESS. / OMIT THIS SECTION WHERE NO REASON IS TO BE STATED.]

4. Notice Period

[CHOOSE ONE: You will work your notice period until the Termination Date. / You will receive pay in lieu of notice for NOTICE PERIOD. / You are placed on garden leave until the Termination Date and are not required to attend work.]

5. Final Pay

You will receive your final salary through the Termination Date, together with [payment for NUMBER days of accrued, unused leave / any other amounts owed, e.g. commissions or expenses], on [FINAL PAY DATE], less applicable deductions. [OPTIONAL: Severance terms are offered in a separate severance agreement.]

6. Benefits

Your benefits, including [BENEFITS], will end on [BENEFITS END DATE]. Information about continuing any benefits at your own cost, where available, is [enclosed / will be sent separately].

7. Return of Company Property

Please return all company property, including [LAPTOP, PHONE, ACCESS CARDS, KEYS, DOCUMENTS], by [RETURN DATE] to [RETURN CONTACT OR ADDRESS]. Your access to company systems will end on [ACCESS END DATE].

8. Continuing Obligations

Please remember your continuing obligations under your employment contract and any confidentiality or other agreements you signed, which remain in effect after the Termination Date. [OPTIONAL: If you believe this decision is wrong, you may appeal in writing to CONTACT by APPEAL DEADLINE.]

9. Contact

If you have questions about this letter, your final pay, or benefits, please contact [HR CONTACT NAME] at [HR EMAIL / PHONE]. We thank you for your contributions to [COMPANY NAME]. Sincerely,

10. Signatures

This letter may be signed electronically, and electronic signatures have the same effect as handwritten signatures. FOR THE COMPANY: [COMPANY NAME] Signature: ____________________ Name: [SIGNATORY NAME] Title: [SIGNATORY TITLE] Date: [DATE] ACKNOWLEDGMENT OF RECEIPT I acknowledge that I have received this letter. My signature confirms receipt only and does not mean I agree with its contents. EMPLOYEE: [EMPLOYEE NAME] Signature: ____________________ Date: [DATE]

When to use this template

  • When ending an employee's employment after a decision has been made and communicated
  • When a position is eliminated due to restructuring or redundancy
  • When an employee is dismissed for performance or conduct after the required process
  • When you need written confirmation of final pay, benefits, and property return

How to fill it in and get it signed

  1. Confirm you have followed any process your contract, policies, and local law require before terminating.
  2. Enter the employee's name, job title, and the termination date, and choose the notice option.
  3. State the reason in neutral, factual terms, or omit it where appropriate.
  4. Fill in final pay, accrued leave, benefits end date, and the property return details.
  5. Upload the letter to eSignSimple, sign it as the employer, and send it to the employee to acknowledge receipt.

This template is general information, not legal advice. Laws differ by country and state; have a lawyer review contracts with high stakes.

Frequently asked questions

What should a termination letter include?

The termination date, a brief reason where appropriate, notice arrangements, final pay and accrued leave, benefits end date, return of company property, and a contact for questions.

Do I have to give a reason in a termination letter?

It depends on the jurisdiction and the circumstances. Some places require a written reason, while others allow at-will termination without one. Check local rules before deciding.

Does the employee have to sign a termination letter?

Usually not, but asking them to acknowledge receipt creates a record that it was delivered. This template makes clear that signing confirms receipt only.

Can a termination letter be sent electronically?

In many places, yes. Sending it via eSignSimple gives you an audit trail with timestamps and IP addresses showing when it was opened and signed. Some jurisdictions require specific delivery methods, so check local rules.