Termination Letter to Employee: Format and 11 Samples
A termination letter is the written notice an employer gives when it ends a person's employment, or ends a service contract. It states the decision, the last working day, the reason in plain words, and what happens to dues and company property. This page has 11 samples for HR teams and business owners: poor performance, misconduct, probation, redundancy, unauthorised absence, breach of confidentiality, a final warning, a contract employee, a branch closure, a termination email and a vendor agreement.
Add your name, designation and company in the form once, and every sample picks them up. Then put in the employee's details, the dates and the reason. Keep the tone calm and factual, and check each letter against the appointment letter before you sign it.
Termination Letter to Employee for Poor Performance
For HR or a manager ending the job of an employee whose work did not improve after a written improvement plan.
Address
City
Recipient Name
Recipient Designation
Employee Code: Employee Code
This letter is to inform you that your employment with Company Name will end on Last Working Day.
On PIP start date, you were placed on a performance improvement plan with clear targets for area of work. Your manager reviewed your progress with you every week. At the final review on final review date, the agreed targets had not been met, and the gap remained large.
You will be paid your salary up to your last working day, along with any other dues under your appointment letter and company policy. Please return your laptop, ID card and company documents to the HR team before you leave. Your full and final settlement and relieving letter will be processed once the handover is complete.
We thank you for your efforts and wish you well.
Designation
Company Name
Termination Letter for Misconduct (After Inquiry)
For an employer ending employment after an internal inquiry found an employee guilty of serious misconduct.
Address
City
Recipient Name
Recipient Designation
Employee Code: Employee Code
This refers to the show cause notice dated notice date and the inquiry held on inquiry date about reason. You were given a full chance to present your side, both in writing and in person, and to bring any witness you wished.
The inquiry committee has found the charge proved. After reviewing its report and your reply, the management has decided to terminate your services with effect from Last Working Day, under the terms of your appointment letter and the company's code of conduct.
Your final dues, after any lawful deductions, will be settled as per company policy. Please hand over all company property, files and access cards to the HR department by your last working day. A copy of the inquiry report is enclosed for your records.
Designation
Company Name
Termination Letter During Probation
For an employer ending the job of a new employee during probation, as allowed by the appointment letter.
Address
City
Recipient Name
Recipient Designation
Employee Code: Employee Code
You joined Company Name on start date as Recipient Designation, on probation for number of days days. During this time, your reporting manager reviewed your work at regular intervals and shared feedback with you.
After careful thought, we have decided not to confirm your employment. As per the probation clause in your appointment letter, your services will end on Last Working Day. The main reasons are reason, which were discussed with you in the review meetings.
Your salary for the days worked and any other dues will be paid with your final settlement. Please complete the exit formalities with HR and return all company items before your last day.
We appreciate the time you spent with us and wish you success in your next role.
Designation
Company Name
Termination Letter Format
Print a termination letter on company letterhead and keep the parts in this sequence.
| Part | What it contains |
|---|---|
| Company details | Company name and address at the top, or the letterhead. |
| Date | The day the letter is issued. |
| Employee details | Name, designation and employee code of the person. |
| Subject | A plain line, such as "Termination of employment due to redundancy". |
| Opening | The decision and the last working day, in the first two lines. |
| Reason | A short, factual reason, with dates of earlier warnings, reviews or inquiry if any. |
| Dues and property | Salary, notice pay and settlement as per the appointment letter and policy; items to return. |
| Sign off | "Yours sincerely", with the signing authority's name and designation. |
Termination usually comes after a warning letter when the reason is conduct or performance. Once the exit is complete, issue a relieving letter and, where suitable, an experience letter.
Termination Letter Due to Redundancy (Role Closed)
For an employer ending a job because the role no longer exists after restructuring, not because of the employee's work.
Address
City
Recipient Name
Recipient Designation
Employee Code: Employee Code
We regret to inform you that, after the restructuring of the Department department, your position of Recipient Designation has become redundant. This decision is based on business needs alone. It is not a reflection of your work or conduct.
Your employment will end on Last Working Day. You will receive the notice pay, compensation and other dues that apply to you under your appointment letter, company policy and applicable law. HR will share a written statement of these amounts before your last day.
We will gladly give you an experience letter, and your manager is happy to act as a reference. Please meet the HR team to plan the handover and exit formalities. Thank you for your contribution to Company Name.
Designation
Company Name
Termination Letter for Unauthorised Absence (Absconding)
For an employer ending the job of an employee who has stayed away without leave and has not replied to earlier letters.
Address
City
Recipient Name
Recipient Designation
Employee Code: Employee Code
Recipient Address
You have been absent from work without leave or information since start date. We wrote to you twice, at your registered address and on your email, asking you to resume duty or explain your absence. We also tried to reach you by phone. No reply has been received so far.
Under the terms of your appointment and the company's attendance policy, continued absence without approval is treated as abandonment of employment. The management has therefore decided to terminate your services with effect from Last Working Day.
Your pending dues, if any, will be settled after you return company property, including your laptop and ID card. You may contact the HR department on Phone to complete the formalities.
Designation
Company Name
Termination Letter for Breach of Confidentiality
For an employer ending employment after an employee shared confidential company data against a signed agreement.
Address
City
Recipient Name
Recipient Designation
Employee Code: Employee Code
An internal review found that on incident date, you sent internal client files from your official email to a personal email address. This goes against the confidentiality agreement you signed when you joined and the company's data protection policy.
You were given a chance to explain this in the meeting held on meeting date. We have considered your explanation carefully. However, the breach is serious, and the management has decided to end your employment with effect from Last Working Day.
Please note that your duty to keep company information confidential continues after your employment ends, as stated in your agreement. We ask you to delete any company data you hold and to return all company property. Your final settlement will be processed as per company policy.
Designation
Company Name
Termination Letter After Final Warning (Attendance)
For an employer ending employment after repeated late coming and absences despite written warnings.
Address
City
Recipient Name
Recipient Designation
Employee Code: Employee Code
This letter follows the written warnings issued to you on first warning date and final warning date about repeated late arrival and absence without approval. The final warning clearly said that any further breach could lead to termination.
The attendance record for this month shows that you came late on several days and were absent on two working days without telling your manager. Your manager also discussed this with you in person.
As the problem has continued, the management has decided to terminate your services with effect from Last Working Day. Your salary and dues up to that date will be paid as per company policy, after you complete the handover and return company items. We wish you well for the future.
Designation
Company Name
Termination Letter for Contract Employee (Early End)
For an employer ending a fixed term contract before its end date, under the notice clause of the contract.
Address
City
Recipient Name
Recipient Designation
Employee Code: Employee Code
Your fixed term contract with Company Name as Recipient Designation began on start date and was due to end on end date. The client project you were hired for has closed early, so we are unable to continue the contract till its end date.
As per the notice clause in your contract, we are giving you number of days days' notice. Your last working day will be Last Working Day. You will be paid for the notice period, or for any part of it you are not asked to work, as the contract provides.
This decision is due to the project closure only. We will be glad to consider you for future roles that match your skills. Please hand over the project files to your team lead before you leave.
Designation
Company Name
Termination Letter Due to Branch Closure
For an employer closing a branch or office and ending the jobs of staff who cannot be moved to another location.
Address
City
Recipient Name
Recipient Designation
Employee Code: Employee Code
As you know, the management has decided to close our Branch Name branch from closure date. We looked for positions for all branch staff at our other locations, but there is no suitable opening for your role at present.
With regret, we inform you that your employment will end on Last Working Day. You will be paid your salary till that date, along with the notice pay, closure compensation and other benefits that apply under your appointment letter, company policy and applicable law.
HR will hold a meeting with all branch staff to explain the settlement and the documents you will receive. If a suitable vacancy opens at another branch in the coming months, we will contact you. Thank you for your service to Company Name.
Designation
Company Name
Termination Email to Employee
For HR confirming a termination by email after a meeting with the employee, with the signed letter attached.
As discussed in our meeting today, your employment with Company Name will end on Last Working Day. The signed termination letter, which explains the reason and your dues, is attached to this email.
Please return your laptop, access card and any company documents to the admin team by return date. Your access to company systems will close at the end of your last working day.
Your full and final settlement will be shared within the time set by company policy. If you have questions about your dues, PF transfer or documents, please write to me or call me on Phone.
Designation
Company Name
Termination Letter for Service Agreement (Vendor)
For a company ending a service agreement with a vendor or agency, as per the notice clause in the agreement.
Address
City
The Director
Organisation Name
Recipient Address
This is to inform you that Company Name is ending the service agreement dated agreement date for Service Name, as per the termination clause of the agreement. Please treat this letter as number of days days' written notice. The agreement will end on end date.
Over the last two quarters, the agreed service levels were missed several times, as recorded in the monthly review reports shared with your team. We raised these gaps in our review meetings, but the service has not reached the required level.
Please continue the service until end date and hand over all our data, access details and documents by that date. Payment for services delivered till then will be released after the final invoice is checked, as per the agreement.
Designation
Company Name
How to Write a Termination Letter for Employee
- Check the appointment letter first. Look at the notice period, probation clause and termination terms. The letter must match them.
- Follow a fair process. For conduct or performance, give a warning or show cause notice and a chance to reply before you decide.
- State facts, not feelings. Mention dates, targets and documents. Avoid personal remarks or words like "lazy" or "dishonest".
- Be clear about money and dates. Give the last working day and say that dues will be paid as per the contract, policy and law.
- Close with respect. Thank the person where it fits, and say how they can reach HR.
Labour rules differ by state, industry and type of worker. For any doubt, especially in a misconduct or redundancy case, take advice from a labour law expert before you issue the letter. Compare with the terms in the appointment letter you issued.
Tips for Writing a Termination Letter
- Tell the employee in a private meeting first. The letter should confirm the decision, not be the first news of it.
- Have the letter signed by an authorised person, such as the HR head or a director.
- Keep the reason to one or two factual lines and attach supporting documents, such as the inquiry report, only when needed.
- Never mention religion, caste, health, pregnancy or personal life as a reason.
- Give the letter by hand and take a signed acknowledgement, or send it by registered post and email.
- Keep a copy in the employee's file with the warnings, reviews and settlement papers.
Questions people ask
What is a termination letter?
A termination letter is a formal letter from an employer telling an employee that the job is ending. It gives the last working day, the reason and details of dues and company property. The same term is also used for a letter that ends a service or rental agreement.
What should a termination letter include?
It should include the date, the employee's name and code, the decision, the last working day, a short factual reason, and details of salary, notice pay and settlement. Add the list of company items to return and the name of the signing authority.
Is a notice period needed before termination?
It depends on the appointment letter, company policy and the labour law that applies to that employee. Many contracts allow either notice or pay in place of notice. In serious misconduct cases, rules can differ, so check with a labour law expert.
Can an employer terminate without a warning letter?
For serious misconduct, some employers end employment after an inquiry without earlier warnings. For performance or attendance issues, a written warning and time to improve make the decision fairer and easier to defend. Follow your own policy in every case.
What is the difference between a termination letter and a resignation letter?
A termination letter is written by the employer to end the job. A resignation letter is written by the employee who chooses to leave. Both should state the last working day.
Every letter on this page is written and checked by our team. Spotted a mistake? Tell us. How we write.
Other letters you may need
- Warning letter12 samples
- Relieving letter11 samples
- Experience letter11 samples
- Appointment letter10 samples
- Offer letter11 samples
- Resignation letter10 samples