What is a formal termination letter?

Asked by: Alexandria Kilback  |  Last update: June 29, 2025
Score: 4.1/5 (36 votes)

A letter of termination is a formal notice to inform an employee they will be dismissed from their current employment. A clear letter of termination can help the departing employee follow internal HR policies, protecting the organization and helping ensure a smooth transition.

Does a termination letter mean you were fired?

A termination letter is an official notice from your employer that informs you your job with the company is ending. This letter will usually explain why you are being let go, tell you your last day of work, and provide details about your final paycheck and benefits.

How do you write a formal termination letter?

Termination letters usually include details such as:
  1. The date of termination.
  2. The reason for the termination (while not always required, many include it)
  3. Any severance benefits or other compensation the employee is entitled to.
  4. Instructions for the return of company property.

What happens if you get a termination letter?

A termination notice is a formally written notification from your employer that you are being terminated from your current job. It also includes information about the next steps you require to take and any compensation or benefits you may receive before leaving.

What is a good example of a termination letter?

Sample Employee Termination Letter for Business Needs

Dear [Employee Name], We regretfully inform you that your employment with [Company Name] will be terminated effective [Termination Date]. Due to commercial demands, we must make tough decisions to reorganize and simplify. We've decided to eliminate your position.

How to Draft a Termination Letter

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What not to write in a termination letter?

Companies should avoid including harsh language, jokes, emotional statements or too much detail in the termination letter. The tone should be respectful and direct. "Stick to the facts," Dresnin said.

How do you politely terminate an employee?

To terminate an employee professionally and compassionately:
  1. Have a clear, documented reason for the termination based on performance or policy.
  2. Hold the termination meeting privately with an HR witness.
  3. Get to the point quickly and communicate the decision directly but tactfully.

Does termination go on your record?

The Hard Truth: Yep, It Goes on Your Record

When you start a job, HR starts a file on you with all your basic info, performance reviews, and yes, the dreaded details of your departure. Most companies will at least note the fact that you were terminated, even if they're light on specifics.

What to do when you get a termination letter?

The first step that any employee should take once they have been dismissed and have in hand their termination letter or package should be to approach an employment lawyer for that lawyer to review those documents.

Why would an employee want a termination letter?

A letter of termination is a formal notice to inform an employee they will be dismissed from their current employment. A clear letter of termination can help the departing employee follow internal HR policies, protecting the organization and helping ensure a smooth transition.

Who writes a termination letter?

A termination letter template is a standard letter used by managers and supervisors to formally notify an employee, contractor, or service provider of the decision to end the working relationship.

Do I get a termination letter if I quit?

There are specific instances where a termination letter is not legally required: Voluntary Quit: If an employee resigns of their own accord, no termination letter is needed. The resignation should be documented, but a formal termination letter is unnecessary.

What does a termination notice look like?

Dear [employee's name], I regret to inform you that your employment with [company's name] has been/will be terminated as of [termination date]. As discussed, we're terminating the employment relationship because [give summary of your reason].

Can new employers see if you were terminated?

You are right to be aware that your prospective employer may check on the reasons you left your job. Most employers conduct background or reference checks during the interview process. If you've been terminated for cause, it may well come up during their investigation.

Is termination different from being fired?

Termination of employment refers to the end of an employee's work with a company. Termination may be voluntary, such as when workers leave of their own accord. Involuntary termination occurs when a company downsizes, makes layoffs, or fires an employee.

What does wrongful termination look like?

Wrongful termination is any discharge that is done for an improper or illegal reason. For example, the discharge can be illegal for violating a California state or a federal employment law. Or the discharge can be improper for being in violation of public policy.

How long does an employer have to pay you after termination?

For example, for employees who quit, California's final paycheck law requires payment of wages within 72 hours or immediately if the employee gave at least 72 hours' notice. If the employee is discharged in California, then the law requires employers to provide any and all compensation due at the time of separation.

What is the difference between dismissal and termination?

Termination signifies the end of any employment contract and can take various forms like retrenchment, discharge, or dismissal. Dismissal, on the other hand, is a type of termination specifically imposed as a disciplinary action for severe misconduct, such as habitual lateness, fraud, or breach of confidentiality.

Can an employer change the reason for termination?

California is an At Will State. Unless it is outlined otherwise as part of an employment contract or collective bargaining agreement, employment in California is at will. An employer does not have to provide a valid reason for terminating an employee, and an employee does not have to give notice before resigning.

Can a former employer say you were terminated?

The answer is “yes.” A potential employer might conduct a reference check with previous employers to verify that you worked for them within the dates included on your resume. While a previous employer can legally disclose that you've been fired, it doesn't always mean they will.

Can HR fire you without proof?

Under at-will employment, HR can terminate employees without needing proof or a reason. This means they may end employment at any time.

Can I say I quit if I was fired?

Hiring managers ask a number of questions during the recruitment and hiring process. Often, hiring managers want to know about your reasons for leaving a past position when screening applicants. If you were fired from that job, it's best to prepare in advance to answer as positively as possible.

What not to say in termination?

11 Things You Should Never Say When Firing an Employee
  • “This is really hard for me.” ...
  • “I'm not sure how to say this.” ...
  • “We've decided to let you go.” ...
  • “We've decided to go in a different direction.” ...
  • “We'll work out the details later.” ...
  • “Compared to Susan, your performance is subpar.”

How to fire a toxic employee?

No Naysayers Here: How to Fire a Toxic Employee
  1. Schedule a meeting to review the behavioral problem. ...
  2. Outline the problem in explicit, specific terms. ...
  3. Is this the first time you have had to address this problem? ...
  4. Acknowledge those accomplishments. ...
  5. Don't be defensive. ...
  6. Document it. ...
  7. Hold follow-up meetings.

Can you terminate an employee without telling them?

For most workers, the answer to “Can you be fired without warning in California?” is yes. Employers are generally not required to give employees any notice before terminating them. This is part of the at-will employment doctrine that allows employers to end the employment relationship at any time.