Letter of termination – Tutorial
At some point in your career, you will probably have to write a letter of termination.
Employee termination is usually for one of three reasons; redundancy, gross mis-conduct or poor performance
In the cases of gross misconduct or poor performance, writing the letter can be quite a difficult task. Before you write the letter, you should talk to the employee. As a manager, you should be able to work out any problems the employee might have. If the problems cannot be worked out, then there is one final step before you write the letter. If the situation is not too serious, tell the employee verbally that he will be given a letter of termination. You can then ask the employee to resign first so that there is no record of being terminated for the employee.
If the employee does not want to resign, you are then forced to write a letter of termination. Begin by summarizing the employee's history with the organization and state the reason for dismissal. Be truthful, objective, and clear in stating any reasons for dismissal. False or ambiguous statements, even if meant to protect the employee's ego, may be used against you if your decision is later challenged. If, for some reason, you do not include all the reasons for termination in a letter to the employee, do be sure to include a full explanation in your files.
Assure the employee your company will release only job titles, salary, and date of employment to prospective employers if it is your company's policy to withhold other details about performance and reasons for termination.
Avoid a hostile tone; instead show concern for the employee's future well-being.
Each dismissal is different, and you must, of course, comply with local employment legislation. If at any point in the process you are unclear about what to do next, consult with your company expert. For example, it is important that you involve all interested parties such as trade unions, outline clearly the employee's rights to appeal against the dismissal, and provide at least the minimum statutory notice periods and re-numeration. At all points during the dismissal, be factual and keep good, honest records which others can understand and use.
It is easy to get sucked into an emotional black hole when dealing with dismissal, either compassion overload for redundancies or extreme irritation with poor performers, so it is important to remain objective at all times.
General Format for Employee Termination Letter
---Company Letterhead—
Date:
Dear Mr/Mrs/Ms:
Further to our meeting of (date), I confirm that your employment with (Company) is terminated with effect from (date).
As stated at our meeting on (date), the reason for termination of your employment is as follows;
Reason 1 – e.g. summary of redundancy reasons.
Reason 2 – summary of gross misconduct or poor performance and what steps had been taken, and when, to enable the employee to rectify the situation.
Reason 3 – When there are multiple or other reasons for termination
Clearly state individual requirements such as return of company car, equipment, submission of expense claims etc and any other administrative details.
Clearly state actual leaving date, and details of notice period, holiday pay, general pay and pension or other benefits, plus redundancy settlement if appropriate.
Clearly state how the employee can appeal to the decision – the employee's rights, the appeal process and appeal timeframes.
Please sign, date and return this letter as confirmation of receipt of this letter and any attachments/enclosures.
Yours sincerely,
Name, position
Attachments / enclosures include copies of all relevant company policies, plus any supporting material related to the reasons for dismissal.