A Termination Letter which is also called lay-off notice, notice of termination or pink slip is a document which is given to an employee by the employer or HR department when is has got fired from the job. Managers give this letter to their fired or laid-off employee once they have done a termination meeting with him usually in the presence of HR representative. It’s very common in the private organizations that owners fire employees due to a single mistake and they also mention that mistake(s) on the termination letter to prove that they haven’t done anything wrong and that employee deserved to be fired. It’s a painful fact that almost every person gets fired in his career at least once in his life either due to his blunder or because the company is downsizing. Firing employees is a routine task for HR department but most organizations try not to fire their worker and grant them another chance every time they make a mistake but that too don’t happen all the time and there will be a limit after that you will be awarded with a termination letter.

Another big reason of firing employees is that when a company loses its position in the market or goes bankrupt, it’s management fires most of the staff to lower the lose and this process is called downsizing. Although a company is making enormous profit or have good credibility in the market, it may downsize because when the management realizes that there is a department which is not producing as profit as others and it’s just a waste of time to continue it. So managers eliminate that department and fire all the employees working in that department. Unlike just firing the employees, when company downsizes, it awards its terminated employees with compensations and benefits which help them to heal the pain of getting fired for a while. The termination letter also includes all that benefits along with the actual reason of firing.

Generally a termination letter has to include the following information:

  • The steps the employer has taken to advise the employee about his performance.
  • The actual causes which got him fired.
  • The length of the notice period and the payment the employee will be awarded in lieu of that notice period.
  • And the final date when his employment in the company will end.

General Guidelines to write a Termination Letter:

  • The managers are required to constantly keep an eye on the employees and warn them when they are not producing expected output or doing something wrong. This way the employee is aware of the reasons that got him fired.
  • You have to tell him what he or she did was unexpected and the company can’t bare the outcomes of that misbehavior. This way the employee is fully aware of his mistakes and doesn’t just assume something which can lead to a huge conflict in the future.
  • If the employee is warned in the past several times and told that if he continues this behavior he might lose his job, it’s important to add that information on the termination letter.
  • If there are chances that by improving his performance, he can get his job back, it’s necessary to add that on the termination letter.

Here is preview of a Free Sample Termination Letter created using MS Word,

Termination Letter

Here is download link for this Termination Letter,

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