Letter Of Termination | Meaning and Definition

What is a Letter of Termination?

A letter of termination is a formal notification sent to an employee informing them that they will be fired from their present position. A concise letter of termination can assist the departing employee in adhering to internal HR standards, therefore safeguarding the company and facilitating a seamless transition.

There are multiple purposes for a termination letter. They assist businesses in keeping track of termination decisions, and they offer workers the clarity they require to begin the transition to the next stage of their careers. As future prospects examine company review sites for ex-workers’ thoughts, better ties with existing employees help the firm safeguard its reputation.

The circumstances of the layoff must be reflected in the termination letter. Employers typically fire employees in one of three scenarios:

  •   When an employee’s performance or behavior falls short of expectations or violates the employer’s code of conduct.
  •   Employees are fired without reason because of bigger market issues, such as a loss of income leading to retrenchment.
  •   When a short-term employee is hired, the employer decides not to extend the contract beyond the intended period. 

Since the way you write a termination of employment letter can have a big influence on morale and productivity, it is critical to compose the letter properly.