Free Employee Termination Letter

A letter informing an employee that their employment has been terminated. The letter provides the reason for termination, details of any final payments to be made, and exit procedures the employee should expect.

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The decision to let an employee go may be difficult. But, it will be made even more difficult if that employee turns around and brings a claim against you for improper termination. To reduce the chance of that happening, clearly communicate the reason for termination and post-termination procedures through an Employee Termination Letter.

Frequently Asked Questions


The employee termination letter is a way of ending a working relationship with an employee in writing. The letter includes details of any compensation package being offered to the employee, as well as an explanation of why the employee is being terminated.



Some states require the issuance of termination letters to employees. Even if the state does not have such a requirement, using an employee termination letter provides the employee with information they will need to make the transition smoother for both parties.

This letter may also help to protect the employer against lawsuits brought by the employee regarding their termination.

To create your letter, provide:

  • Date - Enter the date this letter is being created;

  • Employer Details - Give the name of the employer accompanied by the identity of the individual signing this letter;

  • Employee Details - Give the name and address of the terminated employee;

  • Reason for the termination - Specify why the employee has been terminated. 

    • If you have terminated the employee for behavioral issues, but your company has a progressive discipline system, make sure you have followed the procedures and warning issuance requirements of the discipline system before the termination.

  • Return of Company Materials - If the employee is in possession of company owned items, inform the employee of what you expect them to return.

  • Final Compensation - Determine the amount, if any, that will be paid to the employee as severance pay. 

    • If your company pays wages for unused vacation days at the end of the year, you will have to pay your employee for their currently unused vacation day

  • Final Day - Specify which date will be the employee’s final date of employment.

  • Post-Termination Procedures - Tell the employee if there is a method to appeal their termination. Also, if applicable, give them the time and date of an exit interview.



The termination letter is not a legally binding contract, but rather an announcement of termination. You may need the exiting employee to sign an Employment Separation Agreement. 



Our propriety form generator will assist you in creating your customized Employee Termination Letter within minutes. Answering the questions is not complicated – you only fill in the requested information and we will put it together for you.

Once you complete the questionnaire and place your order, it will be available for immediate download in either PDF or Word document from your secure online account including a step-by-step guide on how to use your document.   


Generally, an employee termination letter does not need to be notarized since it is not a contract and only the employer signs the letter.   

Please Note: The use of a notary ensures that no one challenges the creation and/or signing of a document later. It is a secure way to firmly establish the effectiveness of your document.