What is a Letter of Termination?
A termination letter is considered as an official notification from an employer to an employee which informs their termination from the job. It comprises of important details such as an employee’s future consideration, whether they are eligible to any compensation, and how they can obtain their final paycheck and documentation.
How to Write a Termination Letter?
1. Begin with the current date
Because you'll be writing the employee termination letter on firm letterhead, the name and address of the company will already be printed at the top. As a result, you can start from the letter's draught date. You can write the date below the printed header on the right or left side of the letter.
2. Address the employee
To address the employee, use a salutation like 'Dear.' In the salutation, include the employee's full name.
For instance: Dear [employee name],
3. Issue a formal termination statement
Make it obvious that the employee's employment with the company has come to an end. 'I am sorry to inform you that...', 'This letter is to formally advise you that...', or 'Please take note that...' are all good places to start.
4. Indicate the date on which the contract will be terminated
It's critical to include the date on which the termination will take effect. This will be the employee's last day of work at the company. The time interval between serving the termination notice and the final date of termination should be equal to or greater than the notice period specified in the employment contract.
5. Specify the reasons for the dismissal
Make a list of all the reasons why the employee was fired. Explain the company's position in the event of a termination without cause. If it's a termination for cause, whenever possible, back up your claims with evidence. Before deciding to proceed with the termination, the letter should clearly state that the employer has given the employee the time to take corrective action.
6. Describe the terms of the agreement
Explain how much the employee will be paid and what perks he or she will be eligible to. Provident funds, pensions, leave encashment, and severance pay are examples of these. Inform them of how to obtain their last paperwork, such as experience certificates and pay stubs. If they are covered by an employee insurance policy, state whether the coverage will terminate or continue until a specific date.
7. Demand that they return all corporate property
If the employee has any company property, such as godown keys, a laptop, a cell phone, or an ID card, request that they return it. If they are staying in company-provided housing, you may give them a reasonable amount of time to leave.
8. Remind them of the agreements that are legally binding
Non-disclosure agreements and non-competition clauses, for example, frequently apply even after an employee leaves the organisation. Make sure they are aware of any agreements that are still in effect. A copy of such agreements can also be included for their records.
9. Include the HR department's contact information
You can provide the contact information for the Human Resources representative near the end of the letter so that the employee can contact them with any questions. Include all of the persons who are in charge of different HR functions, as well as the functions they are in charge of.
10. Keep a professional tone in your voice
Throughout the letter, use a professional tone and vocabulary, regardless of how familiar you are with the person. Maintain relevance, clarity, and conciseness in your content. When describing the events, be truthful and factual.
11. Finish the letter and sign it
You might end the letter with well wishes or by expressing sympathy for the employee. 'Sincerely' or 'Best Regards' can be used as a concluding salutation. Make a spot for your signature and your name underneath it. After you've printed the letter, make sure to sign it.