What is a termination letter?
A termination letter, also called a letter of termination or termination of employment letter, is the written notice an employer gives when a job ends. It confirms the decision, the last day of work and the practical next steps for pay, benefits and company property.
It is not the place for a debate. The conversation happens in a meeting, and the letter documents the outcome. This guide is general information for employers, not legal advice. For a specific situation, talk with HR or an employment attorney.
Do you have to give a termination letter?
Some states require written notice. New York’s Labor Law Section 195 requires employers to notify a terminated employee in writing of the exact date of termination and the exact date benefits are canceled, no later than five working days after the termination.
Even where a letter is optional, it protects both sides. The employee gets clear dates for pay and coverage, and the employer gets a record that matches its files.
What should a termination of employment letter include?
| Element | What to write |
|---|---|
| Date and names | Letter date, employee’s full name and job title |
| Decision | A clear sentence that employment is ending |
| Effective date | The last day of employment |
| Reason (optional) | One or two factual sentences that match your records |
| Final pay | When and how the final paycheck will be paid |
| Accrued time off | Whether unused PTO is paid out, per state law and your policy |
| Benefits | When health coverage ends and that a COBRA notice will follow, if applicable |
| Company property | What to return, to whom and by when |
| Severance (if offered) | A pointer to the separate agreement and its deadline |
| Contact | A person in HR for questions |
Work termination letter format: Use standard business letter format on company letterhead, keep it to one page, write in plain neutral language, and have it signed by the manager or HR. Keep a signed copy in the personnel file.
5 termination letter templates
Each template uses fictional names and companies. Adapt the details, and have HR or counsel review the final version.
1. Termination for performance
June 12, 2026
Dear Jordan Lee,
This letter confirms that your employment with Northwind Logistics as Inventory Coordinator ends effective today, June 12, 2026.
As discussed in our meetings on March 3 and April 28 and in the performance improvement plan dated April 28, the role requires inventory counts with at least 98% accuracy. That standard was not met during the plan period.
Your final paycheck, including wages through today, will be paid on June 19, 2026. Your health coverage ends June 30, 2026, and you will receive a separate notice about continuing coverage under COBRA.
Please return your badge, laptop and keys to Dana Ortiz in Human Resources by June 16. For questions about pay or benefits, contact Dana at (614) 555-0131 or hr@example.com.
Sincerely,
Priya Shah
Operations Manager
2. Termination for misconduct
August 4, 2026
Dear Sam Ortiz,
This letter confirms that your employment with Brightside Dental as Front Desk Coordinator is terminated effective immediately, August 4, 2026.
This decision follows our investigation, completed July 31, which found that you shared patient appointment records with an unauthorized person in violation of the Patient Privacy Policy in Section 4.2 of the employee handbook.
Your final paycheck will be provided as required by state law. Information about your benefits and any continuation coverage will be mailed to your home address.
Please return your office keys and ID badge today. Contact Maria Lopez in HR at (602) 555-0148 with any questions.
Sincerely,
Maria Lopez
Human Resources Manager
3. Layoff or position elimination
October 1, 2026
Dear Taylor Nguyen,
We regret to inform you that your position as Marketing Specialist at Fabrikam is being eliminated as part of a restructuring of the marketing department. This decision is not a reflection of your performance. Your last day of employment will be October 30, 2026.
You will be paid your regular salary through October 30. You are also eligible for severance pay described in the enclosed separation agreement, which explains how long you have to review and sign it.
Your health coverage continues through October 31, 2026, and you will receive a COBRA election notice. You may also wish to contact your state unemployment insurance agency.
You are eligible for rehire, and we are glad to confirm your employment dates and title for future employers. Please contact Chris Morgan in HR at (312) 555-0177 with questions.
Sincerely,
Alex Rivera
Director of Marketing
4. End of probation or introductory period
May 15, 2026
Dear Marcus Hill,
This letter confirms that your employment with Harborview Grocery as Shift Supervisor ends effective May 15, 2026, before the end of your 90-day introductory period.
During the introductory period, we reviewed your progress on opening procedures, cash handling and scheduling. After meetings on April 10 and May 1, we have decided not to continue your employment in this role.
Your final paycheck will be paid on May 22, 2026. Please return your store keys and uniform shirts to the store office by May 18.
If you have questions, contact Lena Park at (503) 555-0122.
Sincerely,
Lena Park
Store Manager
5. End of a fixed-term contract
November 2, 2026
Dear Priya Shah,
As outlined in your employment agreement dated May 1, 2026, your fixed-term position as Project Coordinator for the Contoso warehouse system rollout ends on November 30, 2026. This letter confirms that the agreement will not be renewed.
Thank you for your work on the rollout, which finished on schedule. You will be paid through November 30, and your final paycheck will be issued on the next regular payday, December 4, 2026.
Please return your laptop and access card to the IT desk on your last day. Contact Jordan Lee in HR at (206) 555-0159 with any questions.
Sincerely,
Dana Carter
Program Director
If the worker is an independent contractor rather than an employee, follow the termination clause in the contract instead.
When is the final paycheck due?
According to the U.S. Department of Labor, federal law does not require employers to give former employees their final paycheck immediately, but some states do. State deadlines vary widely:
| Where | Final pay deadline after a firing |
|---|---|
| Federal law | No federal deadline for immediate payment |
| Oregon | By the end of the next business day (Oregon BOLI) |
| Washington | On or before the next regularly scheduled payday; it cannot be held back for unreturned keys, uniforms or tools (WA L&I) |
Check your state labor department before you set a date in the letter, and ask whether unused PTO must be paid out. Our PTO calculator can help you estimate an accrued balance.
What should the letter say about COBRA and benefits?
Under the Department of Labor’s employer guide to COBRA:
- COBRA generally applies to private employers that had at least 20 employees on more than half of their typical business days in the previous calendar year.
- Termination for any reason other than gross misconduct is a qualifying event.
- The employer must notify the plan within 30 days, and the plan must send an election notice within 14 days after that.
- Former employees get at least 60 days to elect coverage, which generally lasts up to 18 months after a termination.
- Premiums cannot exceed 102 percent of the plan’s cost.
The termination letter does not replace the official COBRA election notice. It just tells the employee when regular coverage ends and that the notice is coming.
What does at-will employment mean for a termination letter?
In most states, employees without a written contract can generally be fired for any reason or no reason, as long as the reason is not illegal. A BLS review of the at-will doctrine describes common exceptions, including public policy and implied contracts, and notes that Montana’s Wrongful Discharge from Employment Act limits at-will firing there.
Federal law also bars firing someone because of race, color, religion, sex (including pregnancy, sexual orientation and transgender status), national origin, age 40 or older, disability or genetic information, or in retaliation for a discrimination complaint, according to the EEOC. A stated reason that does not match your records can create problems later.
What extra rules apply to layoffs and severance?
- Large layoffs: The WARN Act generally requires employers with 100 or more full-time workers to give at least 60 calendar days’ written notice of covered plant closings and mass layoffs (DOL WARN guide).
- Severance releases for workers 40 and older: A valid waiver of age discrimination claims must give at least 21 days to consider it (45 days in a group layoff), 7 days to revoke after signing, and written advice to consult an attorney (EEOC).
- Unemployment: Point employees to their state agency. Unemployment insurance is a joint state-federal program, and eligibility generally depends on being unemployed through no fault of your own (DOL).
Severance agreements are legal documents, so have an employment attorney draft or review them.
What should you avoid in a termination letter?
| Avoid | Why |
|---|---|
| Emotional or insulting language | It reads poorly if the letter is ever reviewed by an agency or court |
| Reasons you cannot document | Inconsistent reasons can look like a pretext |
| Mentioning age, health, pregnancy, leave or complaints | These can suggest an illegal motive |
| Promising or denying unemployment benefits | The state agency decides eligibility |
| Withholding final pay until property comes back | Some states, such as Washington, do not allow it |
| Promises about references you will not keep | Offer only what company policy allows |
How should you deliver a termination letter?
- Hold a short private meeting with the employee and, ideally, an HR representative.
- Share the decision in the first minute, then hand over the letter.
- Explain final pay, benefits and property return, and answer practical questions.
- Keep a signed copy, or note the date and method of delivery if the employee declines to sign.
Former employees will later ask for proof of work history, so keep your employment verification letter process ready, and decide in advance whether managers may write a reference letter. If the employee resigns instead, accept their resignation letter in writing. When you are ready to fill the role, our job offer letter templates cover the next hire.