Global HR Glossary

What is a Termination Letter? 

A termination letter is an official document issued by an employer to notify an employee of the end of their employment. This letter serves as a formal record of dismissal and is essential for documenting the reasons for termination, which can be critical for legal compliance and resolving any future disputes.

Key Elements of a Termination Letter

• Reason for Termination: Provides a clear and detailed explanation of why the employment is ending, such as performance issues, misconduct, or organizational downsizing.

• Last Working Day: States the employee's final day of employment.

• Final Paycheck: Details regarding final wages, including compensation for unused leave and any other end-of-employment benefits.

• Company Property: Instructions for the return of any company assets in the employee's possession.

• Legal and Policy References: Cites relevant legal requirements or company policies that guide the termination process.