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Termination Letter Format: Free Generator

Write a clear termination letter with the reason, last working day, notice or pay in lieu, final settlement and return of company property.

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Letter text

The text below is written from the details you fill in. Edit it if you want to change the wording.

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What goes in a termination letter?

A termination letter tells an employee in writing that their employment is ending, why, and from which date, and explains notice, final settlement and the return of company property. A clear, factual letter protects both the company and the employee.

What goes in a termination letter?

  • The decision and the last working day
  • The reason: performance, misconduct, redundancy or probation not confirmed
  • The facts: dates of warnings, the improvement plan, findings of an inquiry
  • Notice: served, paid in lieu, or not applicable for misconduct
  • Full and final settlement and leave encashment
  • Return of the ID card, laptop and other property; continuing confidentiality

Before you send it

Follow the employment contract, standing orders and labour law that apply. For misconduct, the employee should normally get a chance to explain (a show cause notice and an inquiry) before dismissal. Earlier steps are usually a warning letter. When the employee leaves, issue a relieving letter if your policy allows.

Fill in the letterhead and a few details, and the letter is written for you. Click "Edit text" to change the wording, add your logo, then download a PDF or Word file or print it on your letterhead. The draft stays in your browser only.

Features

  • Performance, misconduct, redundancy, probation
  • Facts and earlier warnings
  • Notice served or pay in lieu
  • Settlement and property return
  • Employee acknowledgment line
  • PDF, Word and print

Frequently asked questions

Do I have to give a reason in a termination letter?

It is good practice and often required by the contract or local law. State the reason and the key facts, briefly and without emotion.

What is pay in lieu of notice?

Instead of working the notice period, the employee is paid the salary for that period and leaves earlier.

Can I terminate without notice?

Usually only for serious misconduct proven after a fair inquiry, or if the contract allows it. Check your contract and the law that applies.

Is it free?

Yes. No sign up and no watermark. Download a PDF or Word file, or print it, as often as you need.

Is my information saved?

Only in your own browser, so you can come back to the draft. Nothing is uploaded to our servers.