How To Write A Termination Letter
Publié le 22 September 2022
Knowing how to write a termination letter will help ensure that the employee offboarding process will be as smoothly and professionally as possible.
Employee turnover is not a good thing, but it is inevitable that at some point you will have to terminate the employment of one of your employees. This process is not enjoyable or easy, and it must be done with as much understanding and professionalism as possible. Part of this process is knowing how to write a termination letter that meets professional standards, legal requirements and fulfills obligations outlined in the employee’s contract.
What To Include In A Termination Letter:
Name and Position
The Date of Termination
The Official Reason
Any Company Property
Important documentation
Severance/Benefits
Contact Information
Name and Job Position
Begin a termination letter by addressing the employee by their name and their position within the first line. This information should be offered immediately, so that there is zero chance of any confusion or misunderstandings. In the event that HR managers will need to refer to this termination letter in the future, including the name of position at the very beginning will make for easy reference.
The Date of Termination
This is their final official date as an employee of the company. It is important to be perfectly clear regarding the final day of employment as it means that on the final day that employee will be on payroll, and have access to work-provided health insurance and related benefits. If an employee chooses to apply for Employment Insurance, this date will be required. Companies also need to keep this information in their records for legal reasons.
The Official Reason
The reason for an employee’s termination should always be part of their termination letter. This information is often required for legal and contractual purposes. This part should be succinct and straightforward. If the termination is for business reasons unrelated to an employee’s work performance, this is the chance to briefly explain.
Any Company Property
Companies can provide employees with the equipment and tools they need to perform their duties. The dramatic increase in remote work and work from home positions over the past two years had made this even more common, with laptops and other computer equipment often being issued by the company to their employees for use in their home workspace. These pieces of equipment remain the property of the company, and employees will be required to return them upon termination. Providing an itemized list of all the pieces of issued equipment will serve a notice to employees, and they will also be required to return equipment in proper working order in order to avoid penalties.
Important Documentation
During both the onboarding and offboarding process, there is quite a bit of paperwork involved. Employees leaving a company will need a copy of their record of employment (ROE) and additional documents include those that outline RRSP contributions, insurance plans and related benefits, along with the resulting employee and employer responsibilities. Copies of these documents should be made available to employees at the time of their termination so that they can review the possible options.
Severance/Benefits
A worker whose employment is being terminated by still be entitled to severance or additional financial payouts based on outstanding benefits. The termination letter should include details of any compensation, and also refer to the section of the employee contract that specifies these agreements. Recently terminated employees will be looking for these details and providing them upfront will save time and help to prevent confusion. If there are multiple options involving payouts from which the employee must choose, the termination letter can include a mention of a forthcoming meeting to discuss these options.
Contact Information
An employee who receives a termination letter will likely have many questions and concerns. It is the role of the HR department and their department supervisor to ensure that this offboarding process is completed as smoothly and successfully as possible. Professional contact information — that is, their work email and phone number — for the relevant people in HR and management should be included in the termination letter, as it will allow the employee to reach out with any questions as quickly as possible.
Letting go of an employee is a difficult and inevitable business reality. By knowing how to write a termination letter that meets professional standards and provides necessary information, you can help make the process as smooth and efficient as possible.
Termination Letter: A Basic Template
There can be different reasons for ending employment and issuing a termination letter, which can be noted in the letter itself. Below you will find a basic termination letter which can be used for a variety of circumstances. This basic termination letter can also be adapted to include additional detail and modified to fit the specific needs of the company.
Hello [NAME OF EMPLOYEE],
We regret to inform you that your employment with [COMPANY NAME] in the role of [JOB TITLE] will be terminated effective on [DATE]. This decision is due to [REASON FOR TERMINATION]. This is your official notice as required in your employment contract.
As part of your employment, you have been issued the following pieces of equipment:
- Laptop computer
- Power cord and adapter
- Mouse and keyboard
- External monitor
- External harddrive
These pieces of equipment are legal company property, and must be returned in the same condition in which they were issued by the end of the day on your final day of employment. Failure to do so will result in a violation of your employee contract and the incurrence of additional penalties.
Per your employment contract, all unused sick days and vacation days will be paid in your final paycheck. For all documentation regarding your payroll, RRSP contributions and group insurance, please refer to the online portal. If you require additional documentation please inform us as soon as possible.
For any and all additional questions, contact your HR representative [NAME] at [EMAIL ADDRESS] and [PHONE NUMBER].
Thank you,
[NAME OF SUPERVISOR]
