Termination Letter Template

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Termination Letter Template

While terminating an employee, you need to communicate it officially to him that you are relieving him of his duties. This is usually done by the means of a termination letter. This write up takes a look at the nuances of writing one and at the end, you will also find a sample template.

Although, employees in every organization understand the spoken word, but to maintain a record of affairs, written communication is used. The same process is followed in the scenario wherein you need to fire an employee. An employee is informed that he is relieved of his duties by the means of a termination letter.


A termination letter is a formal letter of business communication, so you need to keep it as short and as formal as you can. You might find yourself tempted to write a nice long letter about how the employee practically sucked at the job, but that’s not the way it’s done. The thing to keep in mind is that the letter is business writing and not creative writing. Like a bad personal relationship, a bad professional relationship too ought to be broken off with as few, yet hard-hitting words as possible. So here are a few writing tips.

A termination letter should be written on the letterhead of the company as it an official document related to the affairs of the company. The letter should start with the name of the employee and the subject of the letter. The first sentence itself is the most heartbreaking one-that the company has decided to end the services of this employee. The second sentence of the letter should talk about the reasons why the company felt that the performance of the employee was not up to the mark.

The second paragraph should have the details about the full and final compensation owed to the employee on account of the days worked in the current month and the compensation for paid leaves which the employee had not availed, if any. Depending on the type of job, you may also have to ask the employee to hand in any transportation, or office materials given to him/her required for doing the work. The letter may be ended wishing the employee good luck for his/her future endeavors.

Mr. (name of the employee)
Subject: Termination of Employment

With great regret I have to inform you that your employment agreement with (name of company) as of (date of agreement) stands terminated as of today on account of the following reasons:(pick the one relevant to the employee in question)

Substandard work: After reaching an agreement with the (number) superiors related to your field, (number) Warnings against your poor performance, it has been determined that your work quality does not meet the standards of our company.

Disobedience: After receiving (number) of complaints/warnings about your conduct within the company premises, we have decided to terminate your status as an employee at (company name). ( this will also include absenteeism)

Downsizing: Upon receiving the report from the Quality Management team along with the (company name) HR reports, we have decided to terminate your status as an employee at (company name). Your employment was still in a probationary state, with the current rate of company growth, we no longer need your services. This is in no way a direct reflection of your work. But as you have not shown the required growth as a probationary employee, this decision was taken as recommended by the Quality Task Force.

The severance package and the full and final settlement of any outstanding benefits can be discussed with the HR, Mr (name). At the same time, you are requested to hand in any company property given to you on account of company work.

(name of company) wishes you the best for all your future endeavors.


(Authorized signature)

Firing an employee is not a desired experience, irrespective of whether the employee was good or not, hence, I hope I could take one of the problems involved in firing an employee off your shoulders! Facing the remonstrations and arguments from the employee, I leave to you.

Fired from work
Termination of employment

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