State that the employment is ending and the effective date, the reason in plain factual terms, and the logistics: final pay, accrued time off, benefits and COBRA, and the return of company property. Keep it short, and for a for-cause termination, reference the warnings already documented in the file.
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Termination Letter Template
FREE TEMPLATE
Termination Letter
This free termination letter template puts an employment decision in writing after you've delivered the news in person. The strongest ones are short and factual, and they confirm a decision the employee has already heard, rather than breaking it.
There are two versions below, one for a for-cause termination and one for a layoff, plus a worked example of each. Copy the version that fits, and have HR and legal review it before it goes out.
This is a template and a starting point, not legal advice. The rules on final pay, notice, and documentation vary by state, so have HR and legal review any termination letter before you send it.
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You've dreaded this day because you suspect that you will be the focus of the person's anger and hurt. But you know you've done all you could possibly do for this employee and now it's time for both parties to move on.
Do not send this letter until you've discussed the decision in person with your employee.
The termination letter is more of a legal formality than anything else. It protects you and it protects your organization by stating clearly the reason for the termination, date of termination and other supporting information.
When preparing a letter of termination, it is important that it does not contain any phrasing that could be perceived as a personal attack, judgment, or accusation. These kinds of statements can be perceived by a third-party (namely, court room jurors) as evidence of a personal vendetta. Therefore, it's best to prepare a short and concise letter stating only the plain facts of the situation.
"Some people just aren't comfortable in an environment where they will be held 100% accountable and where excellence is expected. When you've tried to help an employee to succeed but it's clear he or she is not leaning in, it's best for everyone involved to let that person go and allow them to find happiness elsewhere."
Be clear this is an involuntary termination. Don't mince words or attempt to sugarcoat the truth. Just keep in mind that all statements you include in your termination letter can be used against you if the employee sues you for wrongful termination.
It is not necessary to include every detail leading up to the termination. Summarize, with keys dates of interest such as when the person was verbally warned; when a written warning was received, and when a final notice was delivered.
It's best if you can show a pattern of negative behavior and/or performance, citing specific examples. You can simply refer to past documents, rather than restate old issues in detail.
Using our free termination letter template, you are armed with a communication tool that will help to minimize your risk and address the issue in a clear and professional manner.
Jump To: When to Use It | The Leadership Lens | Copy the Letter | Examples | Customize It | Termination Tips | FAQ | Get Updates Free | Download Templates
When to Use a Termination Letter
Use our termination letter template to craft a letter that conveys your employment decision in writing, after you've delivered the news face to face. The letter takes two forms, depending on why the employment is ending.
- For cause: You're ending employment over performance or conduct, after the warnings and documentation that led here.
- A layoff or position elimination: You're ending employment for business reasons unrelated to the person's work, such as a restructuring or a reduction in force.
If the employee is the one choosing to leave, that's a resignation, and they would write the letter rather than you.
The Leadership Lens
By the time this letter is written, the news should already have been delivered in person. The letter records a decision the employee has heard from you directly, so the letter should never be the way they first learn of it. Deliver the news yourself, in private and with respect, and let the letter put the facts on paper.
Keep judgment out of it, and stick to the facts. Anything that reads as a personal attack or an accusation can come back to harm you if the decision is ever challenged, so state the reason plainly, reference the documentation behind it, and leave any emotion out of the conversation. Treat the person with dignity on the way out, because how you end an employment relationship is watched by everyone who remains. Remember, as a leader you are teaching others by your actions in how you handle tough situations.
Termination Letter Template
Copy the version that fits below, replace each blue field with your own details, and treat the italic blue notes as guidance rather than text to send. A termination is delivered in a private, in-person meeting, so there's no email version. The letter confirms what was said face to face.
Version 1: For-Cause Termination
Use this when employment is ending over performance or conduct. Keep it factual, and lean on the documentation already in the file.
Version 2: Layoff or Position Elimination
Use this when the role is being eliminated for business reasons. Make clear the decision is about circumstances, not the person, and offer real support.
Tip: keep a signed copy in the employee's personnel file, and have a witness from HR present when you deliver it.
Worked Examples
Each version filled in: first a for-cause termination, then a layoff.
For-Cause Termination Example
Layoff Example
Notice what both letters do: they state the decision and the effective date, give the facts without blame, and cover the logistics the person needs. Clarity of the fact is what protects everyone. Deliver the news in person, have HR and legal review the letter first, and treat the person with dignity throughout the entire process.
"It’s not the people you fire who make your life miserable. It’s the people you don’t."
- Dick Grote
How to Customize This Template
The termination letter template is just a tool, but every termination is different. You'll want to be careful to ensure that the final letter fits the circumstances in front of you.
- Pick the right version: For-cause when it's performance or conduct, layoff when the role is being eliminated.
- Reference the documentation: For a for-cause letter, cite the specific warnings and dates already in the file.
- Get the logistics right: Final pay, accrued time off, benefits, COBRA, and the return of company property, per your state's rules.
- Keep it factual: State the reason plainly, without blame or personal judgment.
- Have it reviewed: Send it to HR and legal before it goes out, every time.
Termination Letter Tips
Using our termination letter template and following these tips , your letter will be well prepared. Protect yourself and your company by:
- Speaking plainly without accusation or blame. Speak to only the facts and support those facts with specific examples and reference past documents that support your claim.
- While terminating an associate may be hard for you, keep in mind it's probably more difficult for the person who is about to be unemployed. Remain compassionate and be sensitive to their needs during this difficult process. You can show your support and professionalism by presenting the facts without making any personal judgments.
- Any termination should never be a major surprise. If you are effectively communicating with this employee in your coaching meetings and various counseling sessions, the employee should have a good idea of what's coming. After a verbal warning, written warning and final warning, without showing signs of improvement in behavior or performance, the employee shouldn't be surprised to learn of a termination.
- Keep the conversation on a professional level at all times. Leave out personal feelings or emotions of remorse or pity. This doesn't help you or the person being terminated. Be respectful, caring and understanding that this individual is now faced with moving on. Do your best to wish them well and let the person know that there are no hard feelings.
Remember, in the end there is only so much that you can control. As the person carrying out the termination, you can control the timing, the environment and how you deliver the message, but you cannot control how the individual chooses to receive it. The terminated employee must own their own behavior.
If the communication around your expectations has been consistent along the way, the employee won't be surprised by this news. This is why regular coaching and performance reviews are so important. In most cases, by the time issues rise to the level of termination, the employee already expects to be terminated and is simply waiting for you to notify them of your decision to terminate their employment.
Before you send: Have HR and legal review the letter before you deliver it, without exception. A termination carries real legal exposure, and the rules around final pay, notice, and documentation vary by state, so treat this termination letter template as a starting point for that review rather than a finished document. Confirm the logistics in advance, from the effective date and the final paycheck to benefits, COBRA, and the return of company property, so the employee leaves with clear answers.
Frequently Asked Questions
Click on the (+) sign below to expand each question. Click the (-) sign to collapse it again.
What should a termination letter include?
Do I have to give a reason for the termination?
It depends on your situation and your state, so check with HR and legal. In practice, a for-cause letter should reference the documented performance or conduct issues, while a layoff letter should make clear the decision is about the business, not the person. State the reason factually, without blame.
What's the difference between a for-cause termination and a layoff?
A for-cause termination ends employment because of the person's performance or conduct, after warnings and documentation. A layoff ends employment for business reasons unrelated to the person's work, such as a restructuring. The two letters above handle each, and the tone and content differ accordingly.
When is the final paycheck due?
That's set by state law, and the timing varies widely, so confirm it with HR or legal before you send. Some states require final pay on the last day, others by the next regular payday. The letter should state when and how the final paycheck will be provided.
Should I deliver a termination by letter or in person?
In person, always, in a private meeting. The letter confirms a decision the employee has already heard from you face to face; it should never be how they first learn of it. Email is not the place for this.
Do at-will employees still get a termination letter?
Yes. Even where employment is at-will, a written letter documents the decision, the effective date, and the logistics, which protects both the employee and the organization. At-will means you generally don't need cause to end employment, but putting the decision and details in writing is still good practice. Check your state's rules with HR and legal.
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