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Termination Letter Example

Termination Letter Example

Termination letters can be a little hard to write for the newly appointed human resources manager. But the job has to be done, and it has to be done in the formal and final manner that professionalism decrees.
Arjun Kulkarni
Termination letters are letters conveying to the employee that his employment contract has been terminated. Most often, they are written on the grounds of poor employee performance, repeatedly flouting company policies, unsuitability of the candidate for the job, or sometimes the company's inherent ability to manage the number of people employed.

About Termination Letters

Like the employment letter is a contract between the employer and the employee, wherein the employer agrees to perform certain tasks for the employer in return for an agreed fee, the termination letter is a letter signifying the rescission of that contract. It states that the employment letter and the details mentioned in the employment letter stand void, on account of so-and-so reasons, and thus, the employment of the employee stands terminated on those grounds. It is an official document, and hence, needs to be written properly.

The letter is written on the letterhead of the company. This gives a more formal look about it and it can be contested in the court of law for its validity, if it comes to that. It is also signed below by the person who is charged with the task of termination of the contracts of employees, be it the HR manager of the company, or the chairman and the CEO, because a document of such importance needs that. The letter may also be stamped with the official stamp of the company. It is finally signed and stamped by the concerned authority so that its authenticity cannot be contested.

The body of the letter contains the basic information regarding the employee details, the date of joining, the date of termination, and the amount due, if any. It is always a good practice to mention the cause(s) of termination of the employment contract, though some companies may choose not to do so. Mentioning the cause may also help the employee understand his mistake and will help him avoid making the mistakes he made in the job from which he is being terminated.

Formal Example

Mr. Smith.

Subject: Letter of Termination

It is with great regret that we inform you that your employment contract with (company name) as of (date of joining) stands terminated with immediate effect as on (date).

The reasons for termination include tardiness at workplace, poor quality of work, and absenteeism.

You are requested to report to the office of the HR manager to hand in any property of the company entrusted to you for performing your tasks, and discuss any dues owed to you by the company.

We wish you well your future endeavors.

Yours Faithfully
The Manager

Termination letters can be hard, both for the writer and the reader. But they have to be written at times, keeping the best interests of the company in mind. And now, with this example on writing one, that task has become a lot easier, I hope!