A termination letter can be a difficult thing to write, even for the most seasoned leaders. But it’s an important part of the employment cycle and knowing how to write one as a manager is essential.

You might need to write a letter of termination for a new employee who hasn’t quite met their probation requirements, or a long-term team member who’s broken an employee policy.

This guide will give you some useful tips on how to write a termination letter and ensure you deliver this sensitive news in the most effective way.

What is a termination letter?

A termination letter is a formal document employers use to inform employees that their employment is coming to an end. It’s a key part of the termination process and serves as the official record and notice of the employee’s dismissal.

A good letter of termination will clearly communicate to the employee the terms of the dismissal, helping to safeguard the company from any potential disputes. If you’re writing a termination letter, you should make sure it is well-written, respectful and legally sound. This can help facilitate a smooth transition for both the company and the departing staff member.

Take a look at some examples of termination letters below.

When would you use a termination letter?

There are several instances where a termination letter may be necessary. Reasons can include issues related to performance, misconduct, or even economic circumstances the company may be facing.

Here are a few of the most common reasons for writing a letter of termination:

1. Role no longer needed. Sometimes, roles can become redundant and no longer necessary to a company – so it wouldn’t make sense financially to keep the employee.
2. End of contract. In this case, the termination of employment may be expected by the team member, as it marks the end of a fixed-term contract.
3. Underperformance. If the employee has failed to meet the expectations of the role, despite feedback and opportunities to improve, dismissal may be necessary.
4. Breach of company policy. Company policies are important and must be upheld by all members of the team. If an employee violates a policy, this can be grounds for dismissal. Examples include rules related to workplace behaviour, safety and confidentiality.

You may need to adapt the tone of your letter to fit the circumstance. For example, if it’s the end of a fixed contract and the letter is just a formality, you can keep the letter short and factual. Whereas, if the termination is due to a change in company needs, this may come as more of a shock – and so the tone may need to be more empathetic with further explanation.

What to include in a termination letter.

A termination letter must clearly communicate the terms of separation, so that there can be no misunderstanding or dispute. This can help save your company time and effort in the future.

Here are a few of the main things that should be included in a letter of termination:

• Date of termination.
• Reason for dismissal.
• Any compensation due.
• Information on final pay.
• Relevant legal information.
• Contact details for HR.
• Any requests for company property to be returned.
• Details of the employee’s right to appeal.

How to write a termination of employment letter.

Finding the right tone is key when writing a letter of termination of employment. You don’t want to seem condescending, overly sympathetic or dramatic. When writing your employee termination letter, try to maintain a professional, formal and clear tone throughout.

Here are some top tips on how to write a termination of employment letter:

1. Be prepared.

Before writing the termination letter, you’ll need to gather all the necessary information about the member of staff and their role. For example, ensure you know:

• The reasons for termination, including any mentions of formal warnings and requests for improvement.
• The employee’s legal rights, as well as the company’s, in accordance with employment law.
• Details of future pay or compensation.
• Company policies related to non-disclosure agreements and non-compete agreements.

2. Include key information.

When it comes to writing a termination letter, don’t forget the basics. This includes:

• Date of letter.
• Date of termination in line with contract terms.
• Employee name.
• Employee role.
• Company name.
• Legal information.
• Contact information.

3. Explain the reason for termination.

Ensuring that the employee fully understands the reasons for their dismissal can help to reduce legal risk to the company. You should be transparent when communicating the reason for their termination and let them know that if anything is unclear, or if they have any concerns or rebuttals, they are within their rights to raise this.

4. Highlight any further steps.

In the termination letter, it’s also a good idea to explain the next steps. This can include anything, from their options regarding gardening leave, to how and when to return company property. This can vary depending on company policies and the employee’s specific role, so be sure to bear these in mind when writing your letter of termination.

Free termination letter examples.

Browse a range of editable termination letter examples from Adobe Express to help you find the right tone and format. Using a termination letter template can take some of the pressure off and make sure you communicate this sensitive topic in the most professional way possible.

Here are a few termination letters to choose from:

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Good to know.

What should you not write in a termination letter?

When writing a termination letter, you should avoid using harsh or offensive language, jokes or anything that can be deemed as unprofessional or intimidating. Try to stick to the facts and use a tone that will allow you and the departing employee to separate in an amicable way.

How do you end a termination letter?

You can end a termination letter by offering the employee your best wishes for the future then finish with a salutation like “Sincerely, [your name and role].”

Is Adobe Express free?

Yes. The basic version of Adobe Express includes everything you need to start working creatively. Adobe Express offers thousands of design templates, images, videos and royalty-free photos, quick actions for processing images, as well as much more. You can inform an employee of their dismissal with an effective termination letter that reflects your company and its professionalism.