Termination of Employment Letter Template [& How-To]

Having to let someone go is never easy, even if you’re just the bearer of bad news. Even if the employee did something so egregious that terminating their contract is the only option. How do you start? What should you mention? What should you leave out? Maybe you’ve never even seen a termination letter?

In this article, you’ll find a sample termination letter that gets the tone just right. We'll equip you with tried-and-tested, UK-specific advice on writing termination of employment letter, including tips and examples to hone your working notice letter so it looks professional.

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Had a different letter in mind? See:

• Acceptance Letter Sample
• Apology Letter Sample
• Appeal Letter Sample
• Appointment Letter Sample
• Appreciation Letter Sample
• Leave Letter Sample
• Recommendation Letter Sample
• Reference Letter Sample
• Resignation Letter Sample
• Retirement Letter Sample

Termination letter template

So now you know what you’re aiming for when writing a termination letter. Here’s a step-by-step guide to making your termination of employment letter at least as professional and complete:

1. Frame your termination letter with a professional header and appropriate salutation

A letter of termination is an example of formal correspondence if ever there was one. So start by setting out a proper header: align to the right your name, job title, company name, inside work address, work email, and work phone number. Leave a line and add the date of writing, spelled out in full (e.g. 1st July 2020).

Leave another line. To address your letter, align to the left the employee’s name, their job title (optional), and their postal address. Type out the postal addresses in full. Include a header like this even if you’re attaching the letter of termination to an email. Leave your details out if you’re writing on company letterhead.

For the salutation, use ‘Dear + Mr/Ms + Surname’ or ‘Dear + First Name’. Go with the more formal ‘Dear Ms Smith’ unless you have a history of being on a first name basis with the employee. A termination of employment letter is often a delicate matter and it’s best to maintain a professional distance.

Contract termination letter template: header and salutation

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2. Begin your termination letter by breaking the bad news and outlining the reasons for the termination

Like with most business correspondence, there’s no place here for beating around the bush or making a long preamble. Your first sentence should clearly let your reader know that they have been terminated. Don’t use euphemisms or long, winding sentences. Be direct and get straight to the point.

Specify when the employee’s last day will be. If they’re being terminated without notice, state this here. Use the phrase ‘without notice’ or ‘effective immediately’ in these cases. Then, name the reason for the termination, if there is one. If you’re not obliged to provide a reason, skip to the next section.

Otherwise, start a new paragraph and start outlining the reasons for the termination. If there are several, provide each reason in a separate paragraph to keep the letter organised. Include relevant dates, policies, and other supporting information. How detailed and thorough this part of your termination letter is will depend on factors such as the circumstances around the termination and internal company policies. 

Seek legal counsel—from within the organisation or outside of it—if you’re at all unsure of the appropriateness of the reasons for the termination or the ramifications of what you write here. Relevant legislation is available online, but it’s rarely a good substitute for competent legal advice.

Termination of employment letter template: opening paragraphs

3. Describe what both the company and the recipient of the termination letter will need to do next

Take a paragraph to describe how the company will fulfil its obligations with respect to the employee. These might include remuneration owing, accrued leave, and any employee benefits. Then, indicate what the employee is obliged to do, including returning any communication and storage devices.

It’s also a good idea to remind the outgoing employee of any non-disclosure, non-solicitation, and non-compete clauses they may have signed when starting with the company. Many such clauses are binding after the termination of the original employment contract, something people often forget.

Termination of employment letter template: what happens next

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4. Close your employment termination letter with an offer of assistance and appropriate sign-off

End your termination of employment letter as you would end a standard cover letter. Make yourself available to the employee, offer to answer any questions they may have in response to your letter of termination. This isn’t just a matter of good manners and common decency—some form of dialogue may be a legal requirement in some circumstances. Do put an end-date to this availability, though.

Wish the employee the best of luck in their future endeavours if you feel this is appropriate. Sign off with ‘Yours Sincerely’. Leave a few lines blank and type out your name in full. Sign above your name if delivering the termination letter to the employee in hard copy. Otherwise, paste in a digital image of your signature.

Letter of termination template: closing and sign-off

5. Keep these termination letter formatting tips in mind

Whether you’re writing this termination letter as a business owner or an employee, you’re writing in the name of the organisation. Your letter of termination has to be formal, in line with the rules and etiquette of business letter writing, and absolutely perfect in terms of spelling and grammar.

Make the layout clear and airy

Apply a typical business letter format. Leave the margins at one inch on all sides. Set the line spacing to 1.15 and use double spaces between paragraphs. Write the termination letter on company letterhead if at all possible. Aim to make it as clear, readable, and professional-looking as you can. Sloppiness invites appeals and grievances.

Use an understated font

Choose a professional-looking, easy-to-read font for your letter of termination. Arial, Helvetica, or Calibri will do just fine. Set the font size to 11–12 points. Stick to your company’s style guide and defaults if it has them. The best font is the one nobody notices.

Attach the termination letter in PDF

A termination of employment letter is the kind of thing someone’s going to open and read immediately, no matter what they’re doing or what device they’re on. Save your termination letter in PDF to ensure it displays properly on as wide a range of devices as possible. This will also help with printing.

Do you feel confident you know how to write a termination letter now? Writing an appropriate contract termination letter to an employee really can be just a matter of getting all the right ingredients in order. Got any unanswered questions or experiences to share? Leave a comment down below. Thanks for reading! 

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Our editorial team has reviewed this article for compliance with Livecareer’s editorial guidelines. It’s to ensure that our expert advice and recommendations are consistent across all our career guides and align with current CV and cover letter writing standards and trends. We’re trusted by over 10 million job seekers, supporting them on their way to finding their dream job. Each article is preceded by research and scrutiny to ensure our content responds to current market trends and demand.