Termination Letter Template
A clean, factual termination letter that states the decision, the effective date, final pay, benefits and property logistics — without the editorializing that shows up in lawsuits.
[Company letterhead]
[Date]
[Employee name]
[Address on file]
Dear [First name],
This letter confirms that your employment with [Company] ends effective [date]. The reason for this decision is [one factual sentence consistent with the personnel file — e.g., "the elimination of your position in the restructuring of the support team" or "unsatisfactory performance following the performance improvement plan issued on (date)"].
Final pay. Your final paycheck, covering wages earned through your last day [and accrued, unused vacation of X hours, if applicable], will be [provided at this meeting / paid on (date) in accordance with (state) law] by [method].
Benefits. Your [medical/dental/vision] coverage ends on [date]. Information about continuing coverage under COBRA [or state continuation coverage] will be sent to you at your address on file by [Company / plan administrator name]. Please keep your mailing address current with us.
Company property. Please return [laptop, badge, keys, cards, files] by [date/at this meeting]. [Arrangements: …]
Other. [Only as applicable: severance offer enclosed under separate cover; final expense reports due by (date); reference requests should be directed to (name/HR).]
Questions about final pay or benefits may be directed to [HR contact, phone, email].
Sincerely,
[Name]
[Title]
cc: Personnel file
How to use this letter
One reason, one sentence, consistent with the file. The reason stated here will be compared — by the EEOC, the unemployment office, and any future jury — against what the employee was told in the meeting and what the file shows. Write the same reason everywhere or write none: in a pure at-will termination some employers state no reason at all, which is lawful in most states, but never state a different reason than the real one.
Fill the final-pay line from your state's rule, not your payroll habit. Same-day in California and Massachusetts, 24 hours in Utah, next business day in Connecticut and D.C. — check the state table before setting the date, and include accrued PTO where your state or policy requires payout.
What does not belong in the letter: apologies, praise, promises about references, opinions about the employee, or anything conditional ("if you sign…"). Severance belongs in a separate agreement — see the severance guide — never as a condition woven into the termination letter itself.
Common mistakes
Sources
Educational template, not legal advice. Have counsel review before use, especially for employees age 40+ or in states with specific notice requirements.