Termination letter

Federal base for confirming the end of employment, written to stay consistent with the personnel file

A termination letter is short, and most of the risk in it comes from what gets added. A reason that does not match the personnel file, a reference to leave or a medical condition, or a sentence explaining the decision in more detail than the file supports are the three things that turn a routine letter into an exhibit. This base states the decision, the date, and what happens to pay and benefits, and routes everything else to a separate document. Bracketed items are your choices.

Before you send this

• One reason, and it must match the file. State the same reason that appears in the personnel record and that your managers will give if asked. A reason that shifts over time is the most common evidence of pretext.
• Say nothing about protected characteristics or protected activity. Do not mention age, disability, pregnancy, religion, national origin, military service, a complaint the employee made, or a leave the employee took. If a leave or accommodation is genuinely part of the history, that belongs in a separate document prepared with advice.
• Keep medical information out. If the employee has given medical documentation, it belongs in a separate confidential file, not in this letter. Describe only a work restriction if one is directly relevant.
• Final pay timing is state law. Several states require final wages the same day for an involuntary termination, and penalties accrue quickly. Check your state before you set the date below.
• Unemployment notice. Many states require a written notice about unemployment benefits at separation, sometimes on a state form. Section 4 holds the placeholder.
• If an outside firm investigated. Where a third party investigated suspected misconduct and you are acting on it, federal law requires a summary of the nature and substance of the findings to be given to the employee. Section 6 covers that.

[Company letterhead]

[Date]

[Employee name] [Address]

Dear [Employee first name],

1. The decision

This letter confirms that your employment with [Company legal name] ends on [date]. [Choose one and keep it consistent with the personnel record.]

• The decision was made because [state the specific, factual reason: the position was eliminated / attendance did not meet the standard set out in the written warning dated [date] / performance did not meet the expectations set out in the performance improvement plan dated [date] / conduct on [date] violated the [policy name] policy].
• [Where no reason is being stated: Your employment is at will and is ending effective [date].] Choose this only with advice. Some states require a reason on request, and a letter that gives no reason while the file gives one is the inconsistency a reviewer looks for.

[Before choosing the attendance reason, confirm that none of the absences relied on were protected leave under the FMLA, the ADA, a state leave law, or a workers' compensation claim. Counting protected leave against an employee is the most common defect in an attendance termination.]

2. Final pay

Your final paycheck, covering all wages earned through [date] [and accrued, unused paid time off payable under state law and Company policy], will be [provided to you on [date] / mailed to the address above on [date]], in accordance with [state] law. [Describe any deductions and confirm they are permitted by state law, which frequently limits them.]

3. Benefits

Your coverage under the Company's group health plan will end on [date]. You and any covered dependents may be eligible to continue coverage under COBRA, and you will receive a separate election notice from [the Company / the plan administrator] describing eligibility, premiums, and deadlines. Information about [your retirement plan account / any other benefit] will be sent separately by [administrator].

4. [Unemployment insurance notice]

[Several states require a written notice about unemployment insurance benefits at separation, some on a prescribed form and some within a set number of days. Insert your state's notice here or attach the form. Delete this section where your state does not require one.]

5. Company property and continuing obligations

Please return all Company property, including [list: laptop, badge, keys, phone, credit card, and any documents or files], by [date]. [Your obligations under the Confidentiality and Invention Assignment Agreement you signed on [date] continue after your employment ends; a copy is enclosed.]

6. [Investigation summary, only where an outside firm investigated]

[This decision was based in part on an investigation conducted by [outside firm]. The nature and substance of the findings relied on are: [summary of findings]. Consistent with federal law, the sources of information are not disclosed. You may request additional information about the nature and scope of the investigation.]

7. Questions

If you have questions about your final pay or benefits, please contact [name] at [phone or email]. [If a severance agreement is being offered: A separate severance agreement is enclosed. Please read it carefully; it contains a deadline and a recommendation that you consult an attorney.]

Sincerely, [Name] [Title] [Company legal name]

Delivered by: ______________________________

Date: ______________________________

Method (hand delivery, mail, email): ______________________________

What to keep in the file with this letter

• The documents the stated reason rests on: warnings, the performance improvement plan, attendance records, the investigation report.
• A record of who made the decision and when.
• Proof of delivery and the final pay date.
• [Where a charge of discrimination has been filed or a lawsuit is pending, preserve all personnel records relating to the employee and to the action at issue, including application, performance, discipline, and separation records for similarly situated employees, until the matter is resolved.]

Template provided by DefensibleHR LLC. It is a drafting starting point, not a finished document, and it is not legal advice. Final pay timing, permitted deductions, and any required notices are set by state law. Have a qualified employment attorney adapt it for your state before you use it.