Here’s a comprehensive guide on Termination Letter to Employee, complete with a clear explanation, best practices, and multiple sample formats and examples based on different scenarios (misconduct, poor performance, redundancy, or end of contract).
Also read: How to Write a Complaint Letter for various topics?
What is a Termination Letter?
A termination letter is a formal document that notifies an employee that their employment with the company is being ended. It outlines the reason for termination, the final date of employment, any severance pay or benefits, and return-of-property instructions.
Key Elements of a Termination Letter
- Date of issuance
- Employee’s full name and job title
- Reason for termination
- Effective date of termination
- Details of final paycheck or severance
- Return of company property
- HR contact details
- Closing statement
Sample 1: Termination Letter for Misconduct
[Your Company Letterhead]
Date: 10 July 2025
To,
Mr. Ankit Sharma
Sales Executive
Employee ID: 0325
Subject: Termination of Employment Due to Misconduct
Dear Mr. Sharma,
This letter serves as a formal notice of termination of your employment with [Company Name], effective immediately. The reason for your termination is serious misconduct, including multiple violations of company policy, despite written warnings and verbal counseling.
You were found to have [briefly describe the misconduct – e.g., misused company resources or engaged in inappropriate behavior], which is a clear violation of the company’s Code of Conduct.
As per our policy, your final paycheck will include salary up to today’s date and any remaining leave balance. Please return your company laptop, ID card, and other belongings to the HR department by 5 PM today.
You may contact HR at [hr@company.com] for any final formalities or documentation.
We wish you the best for the future.
Sincerely,
[Your Name]
HR Manager
[Company Name]
Also read: How to Write an Apology Letter to Boss?
Sample 2: Termination Letter for Poor Performance
[Company Letterhead]
Date: 10 July 2025
To,
Ms. Riya Verma
Customer Support Associate
Employee ID: 2046
Subject: Termination Due to Unsatisfactory Performance
Dear Ms. Verma,
This letter is to officially inform you that your employment with [Company Name] will be terminated effective 31 July 2025.
This decision has been made after repeated performance reviews, feedback sessions, and performance improvement plans. Unfortunately, we have not observed the expected improvement in your job performance despite our efforts to support you.
You will receive your final paycheck on your last working day, including all earned wages and any applicable benefits. Kindly ensure all company property is returned before your exit formalities.
We appreciate your time with the company and wish you success in your future endeavors.
Warm regards,
[HR Manager’s Name]
HR Department
[Company Name]
Also read: How to write a Warning Letter to the employee?
Sample 3: Termination Letter for Redundancy/Layoff
Date: 10 July 2025
To,
Mr. Deepak Mehta
Marketing Analyst
Employee ID: 1290
Subject: Termination of Employment Due to Position Redundancy
Dear Mr. Mehta,
We regret to inform you that your position as Marketing Analyst is being eliminated due to organizational restructuring. As a result, your employment with [Company Name] will be terminated effective 15 August 2025.
This decision is not based on your performance or conduct, but solely due to business needs and strategic restructuring. You will receive severance pay as per company policy along with your full and final settlement.
We thank you for your contributions and encourage you to apply for future roles within the company if any suitable opportunities arise.
Please contact HR at [hr@company.com] for guidance during the offboarding process.
Sincerely,
[Manager’s Name]
Senior HR Manager
[Company Name]
Sample 4: Termination Letter – End of Contract
Date: 10 July 2025
To,
Ms. Shruti Sinha
Project Coordinator (Contractual)
Employee ID: 5561
Subject: Termination of Contractual Employment
Dear Ms. Sinha,
We wish to inform you that your contractual employment with [Company Name], dated 15 January 2024, will expire on 15 July 2025, as per the terms agreed upon in your employment contract.
We appreciate your hard work and dedication during your tenure. You will be paid your final dues along with any pending reimbursements on your last working day. Kindly complete all formalities and return company assets.
We wish you the very best in your future projects.
Regards,
[HR Representative Name]
Human Resources
[Company Name]
Also read: Informal Letter Formats To A Friend With Sample Topics
Sample 5: Simple Termination Letter Format (Generic)
Date: [DD-MM-YYYY]
To,
[Employee Name]
[Employee Designation]
[Employee ID]
Subject: Termination of Employment
Dear [Employee Name],
This letter serves as formal notification that your employment with [Company Name] is being terminated effective [Termination Date].
The reason for termination is [brief reason – misconduct/performance/redundancy/contract end]. You will receive your final salary and any applicable benefits on your last working day.
Please return all company property to the HR department before your exit. For any queries, you may contact HR at [HR Email or Number].
We thank you for your time and wish you success in the future.
Sincerely,
[Your Name]
HR Manager
[Company Name]
Tips for Writing a Termination Letter
- Keep the tone professional and respectful.
- Avoid emotional or insulting language.
- Always mention the reason for termination clearly.
- Follow company policy and labor laws.
- Ensure the letter is dated and signed properly.
- Retain a copy for HR/legal records.
Conclusion
A termination letter is a sensitive yet necessary part of professional communication. Whether due to poor performance, misconduct, or business restructuring, the letter must be clear, formal, and legally sound. Use the above templates as per your specific situation.