Template · Separation and offboarding
Termination letter
In short
A termination letter is the written notice an employer gives an employee confirming that their employment has ended, the effective date, and what happens next with final pay, benefits, company property and any severance. This template covers for-cause and no-stated-reason dismissals, with US-specific notes on what to include, what to leave out and when counsel should review it.
Letter of Termination of Employment template
Letter of Termination of Employment
Use the paragraph that fits: Option A states the reason (for cause); Option B confirms the end of at-will employment without detailing a reason. Delete the option you do not use. Replace every [Placeholder]. Have HR or counsel review before delivery, especially if the employee has recently complained, taken leave or requested accommodation.
Header
[Company Legal Name] [Company Address]
[Date]
PERSONAL AND CONFIDENTIAL Delivered [by hand / by email to [Personal Email Address] / by certified mail]
[Employee Full Name] [Employee Home Address] Employee ID: [Employee ID]
Notice of termination
Dear [Employee Name],
This letter confirms that your employment with [Company Legal Name] as [Job Title] in [Department] ends effective [Termination Date] [at the end of your shift / at the close of business]. [You met with [Manager Name] and [HR Representative Name] on [Meeting Date], when this decision was explained to you.]
Option A: Reason for termination (for cause)
Your employment is being terminated because [state the reason factually, e.g. of continued violations of the Company's Attendance Policy / of a violation of the Company's [Policy Name] on [Date of Incident], when you [brief factual description]].
[If prior steps occurred:] This follows [a verbal warning on [Date], a written warning on [Date] and a final written warning on [Date] / a performance improvement plan that began on [Date] and ended on [Date]]. In each case, you were told what needed to change and that further issues could lead to termination.
Option B: At-will termination (no detailed reason)
As you know, your employment with the Company is at will, which means either you or the Company may end the employment relationship at any time, with or without cause or notice. The Company has decided to end your employment as of the date above.
Final pay
You will receive your final paycheck, including all wages earned through [Termination Date] [and payment for [number] hours of accrued, unused paid time off, as provided by Company policy and applicable law], on [Date / your last day / the next regular payday, [Date]]. It will be paid by [direct deposit to your account on file / check delivered to your home address]. [Any outstanding commissions or bonuses earned under the [Plan Name] will be paid according to the terms of that plan.] Please submit any outstanding expense reports by [Date].
Benefits
Your [medical, dental and vision] coverage will end on [Benefits End Date]. You will receive a separate notice explaining your right to continue group health coverage under COBRA [or state continuation law], including costs and deadlines for electing coverage. [Information about your 401(k) account, life insurance conversion options and any flexible spending account balance will be sent separately by [Benefits Provider / HR].]
Severance (optional)
[If offering severance:] The Company is offering you severance pay of [amount / number of weeks of base pay], subject to your signing and not revoking the enclosed Separation Agreement and General Release. Please read it carefully. You have [21 / 45] days to consider it and [7] days after signing to revoke it. You are encouraged to consult an attorney before signing. If you do not sign, you will still receive your final pay and benefits information described in this letter.
Company property
Please return all Company property in your possession by [Date], including [laptop, phone, ID badge, keys, access cards, tools, uniforms, documents and files]. [A prepaid shipping box will be sent to your home address / You may return items to [Name] at [Location].] Your access to Company systems [has been / will be] disabled as of [Date and Time]. Any personal items remaining at your workstation will be [returned to you by [Date] / available for pickup on [Date]].
Continuing obligations
Please remember that your obligations under the [Confidentiality Agreement / Non-Solicitation Agreement / Invention Assignment Agreement] you signed on [Date] continue after your employment ends. A copy is enclosed for your reference.
Closing
If you have questions about your final pay, benefits or the return of property, please contact [HR Contact Name], [Title], at [Phone Number] or [Email Address].
Sincerely,
[Signer Name] [Signer Title] [Company Legal Name]
Enclosures: [COBRA notice (or sent separately by administrator) / state separation or unemployment notice / Separation Agreement / copy of signed agreements]
Acknowledgment of receipt
- I acknowledge that I received this letter. My signature does not mean I agree with its contents.
- Employee signature
- Date received
- If the employee declined to sign: witness name and note
- Witness signature
How to use this template
- Confirm the decision is documented and reviewed by HR, and check for recent complaints, leave requests or accommodation requests before drafting.
- Choose Option A or Option B and delete the other; if you state a reason, keep it factual and consistent with your records.
- Check your state's final pay deadline and PTO payout rule and fill in the exact date and method of the final paycheck.
- Confirm benefits end dates with your benefits administrator and arrange the COBRA notice.
- Add any state-required separation or unemployment notice as an enclosure.
- Deliver the letter in a private termination meeting with a witness present, or by email and mail the same day for remote employees.
- Ask for a signed acknowledgment of receipt, note it if the employee declines, and file the letter in the personnel record.
What a termination letter is for
The dismissal letter is the record of what the employer told the employee and when. It confirms the last day, the reason if you choose to give one, and the practical steps: final pay, benefits, property and contacts. If the employee files for unemployment, a wage claim or a discrimination charge, it is one of the first documents anyone reads.
The letter is not the conversation. Tell the employee in person or on a video call first, with HR or a second manager present, and hand over or send the letter at the end of that meeting. Use the termination checklist to cover the steps around it, such as cutting system access and collecting property. When the conversation has to happen remotely, follow it with a short termination email that attaches this letter. See our glossary entry on termination for the types of separation and how they differ.
Stating a reason, or not
In an at-will state, you usually do not have to give a reason. Whether you should is a judgment call, and HR teams disagree.
The case for stating it: the employee knows why, the record is clear, and the reason matches the warnings already in the file. For a termination for cause letter after documented progressive discipline, we would state the reason in one or two factual sentences and list the prior steps.
The case against: every word in the letter can be compared to every other record. If the letter says "poor performance" and last year's review says "exceeds expectations", a plaintiff's lawyer will call that pretext. When the reason is complicated, the documentation is thin, or the employee is in a protected situation, many employers use the at-will wording in Option B and keep the detailed reasons in the internal file.
What you must never do is give a reason that differs from the real one. Inconsistent reasons are one of the most common pieces of evidence in wrongful termination claims. Also note that some states require a written reason on request. Missouri and several others have service letter laws, and Montana is not fully at will after the probationary period.
Final pay and state notices
Final paycheck timing is set by state law, not federal law, and the range is wide. California requires final wages immediately at the time of involuntary termination. Colorado, Massachusetts and several other states also require payment at or very close to separation. Many other states allow payment by the next regular payday. Whether accrued, unused vacation must be paid out also varies: California, Colorado and a handful of others treat earned vacation as wages that must be paid, while many states follow the employer's written policy.
Several states require a written separation notice. California requires employers to give the "For Your Benefit" unemployment pamphlet (DE 2320) at separation, New Jersey requires the BC-10 unemployment instructions form, and New York requires written notice of the termination date and benefits end date within five working days. Check the rules for the state where the employee works, not where headquarters sits. This page is informational and not legal advice.
Severance and releases
Severance is not required by federal law, but if you offer it, tie it to a signed release of claims in a separate agreement, not in the termination letter itself. Use the separation agreement template for that document.
For employees 40 and older, the Older Workers Benefit Protection Act requires the release to give at least 21 days to consider it (45 days in a group termination program), 7 days to revoke after signing, and advice in writing to consult an attorney. Group programs also require disclosure of the ages and job titles of those selected and not selected. If you are reducing headcount rather than dismissing one person for performance or conduct, use a layoff letter instead and check whether the WARN Act applies.
What to leave out
- Opinions and adjectives. "Your attitude was unacceptable" invites argument. "On March 4 you left your shift two hours early without approval" does not.
- Anything about protected characteristics or activities. No reference to age, health, leave taken, pregnancy, complaints or workers' compensation, even indirectly.
- New information. If the reason was never raised with the employee before, a letter is a poor place to raise it first.
- Promises you cannot keep. Do not promise a neutral reference or uncontested unemployment unless you will honor it company-wide.
- Threats. Remind the employee of signed agreements, but do not threaten legal action in the letter.
Terminations at volume and across sites
A contact center or warehouse with 1,000 hourly workers may process a dozen involuntary terminations a month, most for attendance. At that volume the risk is inconsistency: one site states reasons, another does not; one pays final wages the same day, another waits for payroll. Build two or three locked versions (attendance points threshold, policy violation, end of probation), with state-specific final pay language selected by work location.
Require HR review for every termination, but make it fast. A same-day review checklist that confirms the documentation, the point count or policy reference, and any recent leave or complaint catches most problems. For no-call no-show job abandonment, follow your written policy exactly, attempt contact in writing before you treat the job as abandoned, and send the letter to the home address on file.
Frequently asked questions
Is an employer required to give a termination letter?
Federal law does not require one. Some states require written notice of separation, benefits end dates or the reason for termination on request, so check the state where the employee works. Most employers issue one anyway for the record.
What should be included in a letter of termination of employment?
The effective date, a factual reason or at-will statement, final pay date and method, PTO payout, benefits end date and COBRA information, property return instructions, continuing obligations, any severance offer, and an HR contact.
What is the difference between a termination letter and a dismissal letter?
In US usage they are the same thing. "Dismissal letter" is more common in the UK and in some industries, while "termination letter" is the usual US term for an involuntary separation.
Should a termination for cause letter list prior warnings?
Yes, if they exist and are documented. Listing the dates of verbal and written warnings or a PIP shows the employee was told about the problem and given a chance to correct it.
Can I send a termination letter by email?
Yes, especially for remote employees, after a live conversation. Send it to a personal email address as well as the work address, since system access is usually cut, and mail a copy if state notice rules require written delivery.
What if the employee refuses to sign the termination letter?
Their signature only acknowledges receipt. If they refuse, note the date, time and refusal on the acknowledgment block, have the witness sign, and file it. The termination is still effective.