Being terminated from a job is difficult for any employee especially if it has been a decade or more in which the employee worked in the company. Nevertheless, a company must go on with the termination and must fully inform the employee about the reasons and the details of it by sending an employment termination letter to the employee.

What Is an Employment Termination Letter?

An employment termination letter is a document that the employer or human resource and hiring personnel of a company send to their employees who are to be terminated from their employment. In addition, the form provides sufficient explanation and details about the termination as well as the requirements or actions to be fulfilled by the employee as part of his termination procedure.

Employment Termination Form Sample

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Types of Employment Termination Letters

Employee Redundancy Termination Letter – Employee redundancy terminations are done when a company decides that a job position or a role is no longer relevant to their business therefore not hiring anyone to fill in the terminated employee’s position since it will be removed completely from the company. The letter to create to inform the employee who will be terminated due to redundancy is known as an employee redundancy termination letter.

Employee Redundancy Termination Letter

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In this letter, the company will be able to explain their justifications regarding the termination as well as the steps they took prior to deciding to terminate the employment such as redeployment or moving the employee to another possible job position. The payment for the redundancy termination should also be indicated in the letter along with the employee’s entitlements and benefits following his termination.

Employment Lay Off Termination Letter – Downsizing is one of the most common reasons why employees will be laid off from their companies. For this, employment lay off termination letters must be sent to each employee who will no longer be employed in the company. Three sections comprise the letter in which the first section is intended for the greeting of the company and a brief introduction of the lay off termination. The benefits that the employee will be receiving due to the layoff will be stated as well as the benefit’s period or start and end dates.

Employment Lay Off Termination Letter

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The second section of the letter, on the other hand, informs the employee that an employment verification letter is attached or enclosed with the termination letter while the last section states other miscellaneous items to be discussed and be known by the employee.

Employment Termination Process Notice Letter – This type of employment termination letter not only states the reason for the termination but also the process to be completed by the employee including the items that he must return to the company, the employee forms and documents he must fill out and submit, and the website or link of the exit survey that he must fulfill. Furthermore, the letter also contains the contact information of the company’s representative or the human resource personnel who sent the letter.

Employment Termination Process Notice Letter

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Regular Employee Employment Benefits Termination Letter – Employees who are not to be terminated from their employment or job yet are about to be terminated from being eligible to receive the company’s worker’s compensation insurance benefits must be able to receive a regular employee employment benefits termination letter from their employer. In the letter, the date when the employment benefits will be terminated will be stated along with the termination’s reason and details.

Regular Employee Employment Benefits Termination Letter

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Why Are Employment Termination Letters Important?

Employment termination letters are important for the following reasons:

It allows the company to present their justification to the terminated employee

With the letter, the employee will know why he is being terminated including the details of his possible actions leading to his termination or the situation the company is currently dealing with in its business field. Furthermore, presenting the reasons in written form is better than verbally telling the employee about his termination.

Provides instructions and guidelines to be followed by the employee

Aside from the termination reasons, the employee will also be able to know what he must do such as the steps and documents he must complete in lieu of his termination. This also includes the office supplies or equipment he must return so to receive an employment clearance from the company.

And lastly, an employment termination letter is essential for meeting the purpose of documenting the company’s employment terminations or any action related to the employees and former employees of the company. In addition, it is important to note that when an individual is no longer employed in the company, he must still adhere to the terms and conditions of the contracts or agreement forms that he signed which are enforceable even after his employment termination such as a nondisclosure agreement or an NDA intended to protect the company’s trade secrets.

Probationary Employee Termination Letter

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Employment Termination Letter Tips

When using our employment termination letters, it is essential to keep in mind that each letter caters to varying purposes and subjects. For instance, a benefits termination letter can be used for simply terminating the benefits of the employee as well as for terminating his employment altogether, while other letters are only for terminating the employment of the employee and not for other terminations. In addition, each of the letter’s file size also differs and this should be noted especially if the company who will be using the letter template has a preference in terms of document sizing.

Moreover, to effectively use our employment termination letters, the chosen template must be downloaded and extracted by clicking on the download button beside the sample image of the letter, and by right-clicking on the mouse after the file is downloaded. The reason why the templates are in ZIP files is to ensure that the template will be transferred and downloaded fully, without complications, and with minimized or compressed file size. And lastly, after the template is downloaded and extracted, it should be accessed using a word-processing software application program so that its contents can be edited and updated based on the preferences and requirements of the company.

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