An employee termination letter is a document given to an employee by their employer informing them that they will be terminated from their current position. It is customary for an employee to be informed in person of their upcoming termination before being issued a termination letter. The purpose of the letter is to formalize the employee’s termination and create a written record in the unlikely event of a legal dispute. In the letter, the employee will be informed of their employment end date, the reasons for their termination, and if they are entitled to any severance pay. If the employee has any current health benefits or is in possession of company property, they must be informed as to what will happen to their insurance policy and the manner by which company property should be returned. The letter also reminds the employee that they must adhere to any non-disclosure agreement (NDA) and non-competition agreement that they’ve signed. It is recommended that employers consult with legal professionals prior to proceeding with the termination of an employee to ensure that they can legally be fired or laid off.

Employment Separation Agreement – Releases liability to one another while detailing the specifics about the employee’s termination with the company.

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