9 termination letter templates and a guide to writing them right

The header sets the tone and ensures there’s no confusion about who’s sending the letter, when it was written, and who it’s about. Make sure to include:

• Company information, including the company’s legal name (not just the brand name) and full address. For example, “Acme Corporation Ltd.” instead of “Acme.”
• Current date to anchor the timeline of termination, which is important for notice periods, benefits cutoff, and legal compliance. Write dates in long format (e.g., “June 25, 2025”) instead of shorthand (e.g., “6/25/25”).
• Employee information, including full legal name, job title, and department.

You should clearly and respectfully inform the employee that their employment is ending, along with the effective date of termination and a brief mention of any prior notice already given. It’s important to be clear from the start, without vague wording, unnecessary apologies that could muddy the message, or delays in delivering the news.

For example:

• “This letter is to inform you that your employment with [company name] will be terminated effective [date].”
• If you have given prior notice, use “As discussed during our meeting on [date], your employment with [company name] will end on [final date].”
• For immediate termination, go with “This letter serves as formal notice that your employment with [company name] is terminated effective immediately, as of [date].”

Beyond documenting facts for legal or HR purposes, explaining the reason for termination helps clarify the company’s decision and shows fairness — especially in cases related to performance or conduct. You can use a short, factual sentence, depending on the scenario:

• Layoff or restructuring — e.g., “Your position is being eliminated due to organizational restructuring.”
• Performance issues — e.g., “This decision is based on continued performance issues that have not improved despite prior feedback and support.”
• Policy violation or misconduct — e.g., “Your termination is due to a serious violation of company policy regarding [brief description, e.g., data security].”
• Contract end (fixed-term) — e.g., “Your contract is ending as scheduled on [date], and it will not be renewed.”
• Labor laws vary by location, so make sure you check with legal or HR for additional guidance.

Inform the employee of what they’re entitled to receive after termination while aligning with company policy and local labor laws. You should include:

• Final paycheck, covering the last working day, pay for unused vacation or PTO (if applicable), and overtime or bonuses (if owed).
• Severance package (if applicable), including amount, schedule of payment, and any conditions (e.g. signed release or non-disclosure agreement).
• Benefits continuation, such as health insurance details (e.g., COBRA in the US) and retirement plans or stock options.
• When and how the payments will be made (e.g., “via direct deposit on July 1, 2025”).

If the employee has company-owned items — physical gear or digital assets — be sure to ask for them back. Make sure to include:

• List of items to be returned, such as laptop or desktop computer, mobile phone, any peripheral devices, ID badge or keycard, uniforms or equipment, access cards or security tokens, and confidential documents or storage drives.
• Return deadline, which is usually the last working day.
• Return method, including in-person drop-off, mail or courier pickup, who to contact or where to send items.

Let the employee know who to reach out to with questions about their termination, final pay, benefits, or anything unresolved. Here’s what to include:

• Name and title of contact person — usually someone in HR, payroll, or direct management.
• Contact details, including email address and phone number.
• Type of questions they can help with, such as pay, benefits, or return logistics.

Even for a difficult termination, a respectful closing ends the letter on a courteous note that maintains the company’s reputation and encourages a smoother offboarding. You can acknowledge their contributions (if appropriate) or wish them well in their future career.

For example:

• “We appreciate your contributions to the company and wish you the best in your future endeavors.”
• A more empathetic version looks like “Thank you for your work during your time with us. We hope your next opportunity brings you continued success.”
• For serious terminations, it’s best to keep it minimal with something like “We consider this matter closed and wish you the best moving forward.”

The last section of the termination letter should include your signature and allow the employee to sign, acknowledging that they received and understood the notice. This helps prevent any confusion later on, since it confirms the employee received the letter — but only include it if it’s part of your company policy or HR recommends it.

If the employee won’t sign, make a note on the document, such as “Employee declined to sign, a copy was provided.”