Template · Separation and offboarding
Layoff letter
In short
A layoff letter is the written notice an employer gives an employee whose job is being eliminated for business reasons rather than performance or conduct. This layoff letter template covers the reason, separation date, notice or pay in lieu, severance, benefits, unemployment and recall, with optional wording for the federal WARN Act and notes on state notice laws and group releases.
Notice of Layoff template
Notice of Layoff
Use for layoffs, reductions in force and position eliminations. Include the WARN paragraph only if the federal WARN Act or a state notice law applies, and confirm with counsel. Replace every [Placeholder] and delete optional text in brackets you do not use.
Header
[Company Legal Name] [Address]
[Date]
PERSONAL AND CONFIDENTIAL
[Employee Full Name] [Home Address] Employee ID: [Employee ID]
Notice of layoff
Dear [Employee Name],
We are writing to confirm that your position as [Job Title] in [Department / Site] is being eliminated as part of a [reduction in force / restructuring / closure of the [Site Name] location]. Your employment with [Company Legal Name] will end on [Separation Date].
This decision is the result of [brief business reason, e.g. a decline in client volume at the [Site Name] center / the consolidation of the [Function] team into [Location]]. It is not a reflection of your performance or conduct.
Federal or state notice (WARN, if applicable)
[This letter is your written notice under the Worker Adjustment and Retraining Notification (WARN) Act [and [State] law]. The [layoff / closing] is expected to be [permanent / temporary, lasting approximately [Duration]]. [The entire [Site Name] facility will close.] The [layoff / closing] is expected to begin on [Date], and your separation is expected to occur on [Separation Date] [or within the 14-day period starting on [Date]]. [Employees [do / do not] have bumping rights, which means the right to displace another employee with less seniority.] For more information, contact [Company Official Name], [Title], at [Phone Number].]
Between now and your separation date
[Option A: working notice] Please continue in your regular role until [Separation Date]. [Your manager will work with you on a transition plan for your responsibilities.] You may take reasonable paid time off to attend job interviews with notice to your manager.
[Option B: pay in lieu] You are not required to work after [Date]. You will remain on the payroll and receive your regular pay and benefits through [Separation Date].
Final pay
Your final paycheck, including wages through [Separation Date] [and [number] hours of accrued, unused paid time off], will be paid on [Date] by [direct deposit / check]. [Commissions and bonuses earned under the [Plan Name] will be paid according to that plan.]
Severance (if offered)
[You are eligible for severance pay of [number] weeks of base pay, totaling [Amount], [plus [number] months of COBRA premium payments / outplacement services through [Provider Type]]. Severance is conditioned on signing and not revoking the enclosed Separation Agreement and General Release. You have [45] days to review it and [7] days after signing to revoke it. We encourage you to consult an attorney. The enclosed information lists the job titles and ages of employees in the decisional unit who were and were not selected for this layoff.]
Benefits
Your [medical, dental and vision] coverage will continue through [Benefits End Date]. You will receive a separate notice explaining your right to continue group health coverage under COBRA [or state continuation law]. Information about your [401(k) account, life insurance conversion and flexible spending account] will be sent by [HR / Provider].
Unemployment and job search support
You may be eligible for unemployment insurance benefits. [Enclosed is [State Unemployment Notice / Form Name] with instructions for filing.] [The Company will provide [outplacement services / resume and interview support / a job fair with partner employers] through [Date].] [Your state's dislocated worker program may also offer training and job search help.]
Rehire and recall
[You are eligible for rehire, and we encourage you to apply for any open positions at [Company Name] that interest you. Open roles are listed at [Careers Page].] [If this is a temporary layoff: We expect to recall employees by [Date / seniority / business need]. We will contact you at the phone number and personal email on file, and you will have [number] days to respond to a recall offer.]
Company property and access
Please return all Company property, including [laptop, phone, badge, keys and tools], by [Separation Date] [using the prepaid shipping box we will send / to [Name] at [Location]]. Your access to Company systems will end on [Date and Time].
Closing
We know this is difficult news, and we are grateful for your work at [Company Name]. If you have questions about pay, benefits, severance or next steps, please contact [HR Contact Name] at [Phone Number] or [Email Address].
Sincerely,
[Signer Name] [Signer Title] [Company Legal Name]
Enclosures: [Separation Agreement and General Release / decisional unit disclosure / state unemployment notice / benefits information]
Acknowledgment of receipt
- I acknowledge that I received this notice on the date below.
- Employee signature
- Date received
- Method of delivery
- In personEmailCertified mailCourier
How to use this template
- Finalize selection criteria and the list of affected roles, and have HR or counsel run an adverse impact review before anyone is notified.
- Count affected employees by site and within a 30- and 90-day window to check whether the federal WARN Act or a state notice law applies.
- Choose working notice or pay in lieu, and confirm final pay dates, PTO payout and benefits end dates for each employee's state.
- If offering severance, prepare the separation agreement and, for group layoffs including employees 40 and over, the decisional unit disclosure.
- Fill in the letter for each employee from one master list so dates, amounts and enclosures are consistent.
- Deliver letters in individual conversations on the same day, followed by email to personal addresses for remote staff.
- Send WARN notices to the state dislocated worker unit and local government official on the same day, if required, and keep proof of delivery.
Layoff letter versus termination letter
A layoff ends employment because the job is no longer needed: lower volume, a lost client, a site closure, automation or a reorganization. A termination for performance or conduct ends employment because of the individual. The documents should never be mixed. A layoff letter that hints at performance invites a claim that the "business reason" was a cover, and a termination letter that calls a firing a layoff can mislead the unemployment office and the employee.
Use "position elimination letter" or "reduction in force letter" wording when the role is gone. Outside the US, the same document is usually called a redundancy letter, and local law often requires consultation before notice.
The WARN Act and state notice laws
The federal WARN Act applies to employers with 100 or more full-time employees. It requires 60 calendar days of written notice before a plant closing that causes 50 or more employees at a single site to lose their jobs, or a mass layoff of 500 or more at a site, or 50 to 499 if they make up at least 33% of the site's workforce, within a 30-day period. Notice goes to each affected employee (or their union), the state dislocated worker unit and the chief elected official of local government. An employer that falls short can owe back pay and benefits for each day of the violation, up to 60 days.
Several states have stricter mini-WARN laws. New York requires 90 days of notice and covers employers with 50 or more employees. New Jersey requires 90 days and mandatory severance for covered layoffs. California and Illinois cover employers with 75 or more employees. Count layoffs across rolling 30- and 90-day windows, because several small cuts can add up to a covered event. Rules change, so confirm with counsel; this page is not legal advice.
Selection criteria come before the letter
Most layoff lawsuits are about who was selected, not about the letter. Before drafting anything, write down the business reason, the group of employees considered (the decisional unit) and the criteria used, such as role elimination, seniority, skills needed going forward or documented performance ratings. Then compare the selected group with those retained by age, sex, race and other protected characteristics. If employees over 40 are selected at a much higher rate, that needs a hard look before notices go out. See reduction in force for common selection methods.
Avoid selecting people who recently took protected leave, filed complaints or requested accommodations unless the criteria clearly and consistently put them in the affected group.
Severance and group releases
Severance is not required by federal law but is common, often one or two weeks of pay per year of service with a minimum. If you tie it to a release of claims, put the terms in a separate separation agreement. When two or more employees are offered severance in the same program, the Older Workers Benefit Protection Act requires giving employees 40 and over at least 45 days to consider the release, 7 days to revoke it, and a written list of the job titles and ages of those selected and not selected in the decisional unit. Missing that disclosure can make the release unenforceable for age claims.
Delivering layoff notices at scale
When a contact center cuts 120 agents after a client moves its volume, the logistics decide how the day goes. Prepare every letter from a single spreadsheet, check each one against payroll and benefits data, and hold a short briefing for managers who deliver them. Hold one-to-one conversations of 10 to 15 minutes, all on the same morning, then a group session with HR on benefits and unemployment.
Remote employees should hear it on a live call, followed by a layoff notification email with this letter attached. Never let the first notice be an email or a disabled login. Plan the message to remaining staff for the same day, and if you are offering transfers to other sites or roles, list them in writing so the offer is the same for everyone.
Frequently asked questions
What should a layoff letter include?
The position being eliminated, a brief business reason, the separation date, whether the employee works through notice or receives pay in lieu, final pay, severance terms, benefits and COBRA, unemployment information, rehire or recall eligibility, property return and an HR contact.
Is a WARN notice template different from a layoff letter?
A WARN notice is a layoff letter with specific required content: whether the action is permanent or temporary, the expected date, bumping rights and a company contact. If WARN applies, add that paragraph and send separate notices to the state and local government.
How much notice is required for a layoff?
Federal law requires 60 days only for layoffs covered by the WARN Act. Some states require 90 days or apply to smaller employers. Smaller layoffs that no law covers need no legal notice period, though many employers give two weeks or more.
What is the difference between a layoff and a redundancy letter?
They serve the same purpose. Redundancy is the usual term in the UK, Ireland, Australia and other countries, where consultation and statutory redundancy pay rules often apply before notice.
Can a laid-off employee collect unemployment?
Generally yes, because a layoff is a separation through no fault of the employee. Eligibility depends on state rules, and severance can affect timing of benefits in some states.
Should the letter explain how employees were selected?
Briefly state the business reason, but do not list individual scoring. For group programs with a release, the age and job title disclosure required for employees 40 and over must be provided.