5 Termination Letter Templates (+ Tips to Handle Dismissals)

man working on a computer
Stories
Morgane Lança
April 22 2024

Sooner or later, you are going to face situations of employment termination in your company. While they are never enjoyable, you need to face them head-on and be able to communicate effectively throughout the process.

Of course, once the decision is made, the first step consists in informing the employee in question. If you are not quite sure where to start, read on to discover how to write dismissal letters, as well as examples of termination letters and tips to handle these situations in the workplace.

How to Write a Termination Letter

Depending on the context of the termination, you will need to personalize your letter and convey different information. Here is some advice on how to write your letter in the most professional and respectful manner.

1. Start with empathy

No matter the context of the dismissal, being empathetic and understanding is always essential. You can begin your letter by acknowledging the difficulty of the situation and expressing your empathy for the employee.

Phrases such as “I recognize that this decision may be difficult to accept” or “I understand that this news may come as a shock” can be useful to start off your letter, but they can be perceived as generic and empty words. Our advice would be to personalize your opening statement depending on the context of the dismissal and your true feelings on the matter. Of course, you need to find balance between empathy and professionalism; being clear and direct is crucial.

2. Be direct and concise

The employee needs to understand the message your letter is conveying, meaning you need to clearly state the fact that their employment is being terminated. You should clearly state the purpose of the letter from the very beginning. Don’t fall into elaborate or vague discourse. Instead, use straightforward language to convey the message without ambiguity.

3. Explain your decision

Although concise, your letter should leave room for explanation of your decision to terminate the employment. Remember to briefly go over the reason for the termination in a respectful, transparent and non-confrontational manner.

Try to avoid using overly negative language or placing blame on the employee. Instead, focus on the business or performance reasons behind the decision. For example, if the decision is performance-related, try to provide constructive feedback so that the employee can understand the reasons behind the dismissal and improve in the future.

4. Express appreciation

If the company is still on good terms with the employee (meaning that there are no behavioral issues behind the reason for dismissal), remember to take time to express appreciation for their contributions and achievements during their time with the company.

You can mention their professional qualities and what they brought to the team and organization. Appreciation helps soften the impact of the decision and maintains the employee’s dignity.

5. Offer support

If applicable, inform the employee about the support and assistance the company is ready to provide during the transition period.

This could include details about severance packages, benefits continuation, or assistance with job search resources. Remember to share the contact information of the HR department so that the employee can reach out if they need help.

6. Provide administrative and logistical information

Your letter should include any relevant logistical and administrative information, such as the effective date of termination, details about final paycheck and benefits, and instructions for returning company property. Employee departure management includes many administrative steps that you need to take by completing the right offboarding documents.

7. Be respectful and professional

Throughout the letter, maintain a professional tone and avoid using language that is overly emotional or informal, or on the contrary, too harsh and matter-of-fact. Stick to the facts and ensure that the tone of the letter is respectful and appropriate for the situation.

Try to find balance between professionalism and empathy. Remember to end the letter on a positive note by expressing well wishes for the employee’s future endeavors.

8. Review the letter with the HR department

If the HR department did not participate in the writing of the letter, make sure that it reviews it before sending. Your colleagues will be able to ensure the termination letter meets the company’s standards and conveys the necessary information effectively.

You should send the letter as soon as possible and make sure that the effective date of termination is realistic for your team and company’s needs and reality. When it is done, communication about the upcoming departure with coworkers and other departments can start.

5 Examples of Termination Letters by Context

Still unsure of how to write your termination letter? Here are examples you can use whenever you need, sorted by dismissal context:

1. Layoff Letter for Restructuring Reasons

(Date)

(Employee Name)
(Employee Address)

Dear (Employee Name),

I am writing to inform you of a difficult decision that (Company Name) has had to make due to (reason for layoff, such as restructuring, economic downturn, etc.). Unfortunately, this has resulted in the reduction of our workforce, and your position has been affected.

Your contributions to (Company Name) have been valuable, and this decision is not a reflection of your performance. We are genuinely grateful for your dedication and hard work during your time with us.

(Company Name) will be providing (details of severance package, if applicable) to support you during this transition. Additionally, we are committed to assisting you in any way we can during your job search, including providing references and networking opportunities.

Please do not hesitate to reach out if you have any questions or need further assistance. You can contact the HR department at (share HR department’s contact information) for any information regarding the documents we will complete together, or if you need support during this transition period.

Sincerely,
(Your Name)
(Your Position)
(Company Name)

2. Layoff Letter for Economic Reasons

(Date)

(Employee Name)
(Employee Address)

Dear (Employee Name),

I hope this letter finds you and your loved ones safe and well. Unfortunately, the ongoing economic impact of the COVID-19 pandemic has forced (Company Name) to make some difficult decisions regarding our workforce.

Regrettably, we must inform you that your position at (Company Name) is being eliminated due to the economic challenges posed by the pandemic. This decision was not made lightly, and we understand the uncertainty and stress it may cause.

Please know that this layoff is in no way a reflection of your performance or dedication. You have been a valuable member of our team, and your contributions have been greatly appreciated.

In light of this situation, (Company Name) will be providing (details of severance package, if applicable) to assist you during this transition period. We are also committed to offering support and resources to help you navigate this challenging time.

If you have any questions or need assistance, please don’t hesitate to contact (HR Manager’s Name) in Human Resources.

Sincerely,
(Your Name)
(Your Position)
(Company Name)

3. Termination Letter for Performance Issues

(Date)

(Employee Name)
(Employee Address)

Dear (Employee Name),

It is with regret that I must inform you of our decision to terminate your employment with (Company Name), effective (termination date). This decision has been made after careful consideration of your performance and its impact on our team and company goals.

Despite our efforts to support your development and provide feedback, we have not seen the improvement necessary to meet the expectations of your role. As a result, we believe it is in the best interest of both parties to part ways at this time.

We want to express our appreciation for your contributions during your time with (Company Name). We wish you the best in your future endeavors and hope you find success and fulfillment in your next opportunity.

Please refer to the attached documentation outlining the terms of the termination, including (details of final paycheck, benefits continuation, return of company property, etc.).

If you have any questions or require further information, please do not hesitate to contact (HR Manager’s Name) in Human Resources.

Sincerely,
(Your Name)
(Your Position)
(Company Name)

4. Termination Letter for Behavioral Issues

(Date)

(Employee Name)
(Employee Address)

Dear (Employee Name),

I am writing to inform you that your employment with (Company Name) is terminated effective immediately due to (specific reason for termination, such as violation of company policy, misconduct, etc.).

We take matters of (specific issue) very seriously at (Company Name), and despite previous warnings and opportunities for improvement, we have not seen the necessary changes in your behavior.

We understand that this news may come as a shock, but we must uphold the standards and values of our company. We wish you the best in your future endeavors and hope you take this as an opportunity for personal growth and reflection.

Please refer to the attached documentation outlining the terms of your separation, including (details of final paycheck, benefits continuation, return of company property, etc.).

If you have any questions or require further information, please do not hesitate to contact (HR Manager’s Name) in Human Resources.

Sincerely,
(Your Name)
(Your Position)
(Company Name)

5. Temporary Dismissal Letter

(Date)

(Employee Name)
(Employee Address)

Dear (Employee Name),

I hope this letter finds you well. I am writing to inform you of a temporary change in your employment status with (Company Name), effective (temporary dismissal start date).

Due to (specific reasons for temporary dismissal, such as low volume of work, economic constraints, etc.), we find it necessary to temporarily reduce our workforce. As a result, your position at (Company Name) will be temporarily suspended until further notice.

Please know that this decision is purely based on operational needs and is not a reflection of your performance or dedication to your role. Your contributions to our team have been valued, and we hope to have the opportunity to welcome you back when circumstances improve.

During this period, you will be eligible for (details of any applicable benefits or support during the temporary dismissal, such as unemployment benefits, continuation of health insurance, etc.). Additionally, we encourage you to stay in touch with us and to keep your contact information updated, as we will reach out to you as soon as there are opportunities for your return.

We understand that this news may be unsettling, and we are committed to providing support and assistance during this transition period. If you have any questions or concerns, please do not hesitate to contact (HR Manager’s Name) in Human Resources.

We sincerely appreciate your understanding and cooperation during this challenging time. We look forward to the possibility of working together again in the future.

Sincerely,
(Your Name)
(Your Position)
(Company Name)

How to Handle Dismissals in the Workplace

Did you know that 71% of companies have no formal offboarding process in place? Lack of preparation and elaborate programs can lead to poor experiences and business information security issues.

Here are helpful tips to effectively handle dismissals in the workplace, in the healthiest and most efficient way possible:

1. Prepare thoroughly

Before meeting with the employee, ensure that all necessary paperwork and documentation related to the termination are in order. This includes the termination letter, final paycheck calculations, benefits information, and any legal documents.

Schedule the termination meeting at a time and place that provides privacy and minimizes disruption. Choose a quiet and neutral location where the employee can express their emotions without feeling embarrassed or uncomfortable.

2. Conduct the meeting with empathy and honesty

Approach the termination meeting with sensitivity and compassion. Start the conversation by expressing appreciation for the employee’s contributions and acknowledging the difficulty of the situation. Use empathetic language and actively listen to the employee’s concerns and reactions.

Clearly communicate the reasons for the termination in a respectful and non-confrontational manner. Provide specific examples or evidence, if necessary, to support your decision. Avoid blaming or criticizing the employee and focus on the business reasons behind the decision.

3. Focus on administrative management

Address practical matters such as returning company property, deactivating access to company systems, and collecting personal belongings in a respectful and organized manner. Ensure that the employee understands the logistics of their departure, including the timeline for receiving their final paycheck and any other benefits.

HR software can help you streamline the administrative tasks related to employee departures. Although communication and offboarding experience are crucial to maintaining healthy professional relationships and a good employer brand, you definitely need to focus on the administrative dimension of departure management.

4. Offer support and maintain a positive employer brand

Provide information about any form of support that the company offers to support the employee during this period. You can offer to help with resume writing, job search strategies, and networking opportunities.

Reach out to the employee after the termination to express gratitude for their contributions and to offer ongoing support if needed. Provide contact information for HR or a designated point of contact for any questions or concerns that may arise after the termination. This is essential to end the professional relationship on a positive note.

Even in difficult situations, you should strive to uphold the company’s reputation as a fair and compassionate employer. Treat the departing employee with dignity and respect, and handle the termination process with professionalism and integrity.

Click here for examples of recruiting emails to send to candidates! 

How to Communicate on the Departure With Coworkers

Of course, the offboarding process is only starting after you send the dismissal letter. Afterward, you need to communicate on the departure with coworkers as soon as possible after the termination meeting. Delaying the official announcement can lead to rumors and speculations, which can be unhealthy and demotivating for your employees and your workplace environment.

When communicating on the subject, you should be mindful of the exiting employee’s privacy and integrity, while being honest and transparent. Clearly share any relevant details about the departure and the effective last day of work and express appreciation for the employee’s work.

You should encourage coworkers to ask questions or communicate concerns and ensure a smooth transition to the entire team. Mention any changes in responsibilities or workflows resulting from the departure and encourage collaboration to overcome potential challenges while reassuring workers.

By following these tips, employers can effectively communicate the termination to coworkers and announce the departure throughout the entire company in a way that promotes transparency, respect, and professionalism in the workplace.

Need examples of employee departure emails to improve offboarding communication?

We have useful examples of offboarding emails to help you!

DISCOVER THE EMPLOYEE DEPARTURE EMAILS

Related articles

How to Convince Your Boss You Need an HRIS

It’s not always easy to convince your management to invest in HR technology to achieve your business goals…

Read more
How an HR Software Helped an SMB Save $175,000 in One Year

We often hear about HR technologies and the value they bring to the organizations that use them, but what about the facts? This case study, conducted by an external human resources consultant, highlights the various positive impacts…

Read more
Return-to-office Mandates & Policies: What You Need to Know

What exactly do return-to-office policies entail? What impact do they have? Which key statistics should you know? Let’s break it all down so you can see the bigger picture and anticipate what’s next.

Read more
Professional Skills: a Complete Guide for Employers

Professional skills are crucial for creating productive teams and ensuring the innovation and sustainability of an organization.

In this article, we discuss the types of professional skills and the best ways to evaluate and develop them within your company.

Read more
Job Offer Letter Template & Frequently Asked Questions

Have you finished meeting the best candidates and made your final hiring decision? It’s time to send a job offer letter to the talent you have chosen in order to confirm your employment relationship!

Read more
Human Resources Today