Employment Termination Letter

Employment Termination Letter: Confirm the End of Employment Clearly

An employment termination letter is a letter from an employer to an employee confirming that their employment will end. It sets out the reason, the notice period and last day, whether notice is worked or paid in lieu, final pay and holiday pay, benefits, company property, continuing obligations and any right of appeal. Robot Lawyer drafts the letter from your answers, for the law of the country or state you choose, and on the Verified plan a qualified legal professional checks it within 24 hours before you send it.

CONTENTS

What Is an Employment Termination Letter?

An employment termination letter (also called a dismissal letter or a letter of termination) is the written record of an employer's decision to end someone's employment, and the practical details that follow from it.

A clear letter helps the employee understand what happens next, gives them the information they are entitled to, and gives the employer a record of what was decided and when.

When Should You Use One?

• After a dismissal decision
  To confirm a decision already made through a fair process.
• Ending a probation period
  When an employee does not pass probation.
• End of a contract
  When a fixed-term contract will not be renewed.
• Other reasons
  Such as capability, conduct or a business reason.

For redundancy, use our Redundancy Letter instead.

What's Included in Your Letter?

• The decision and reason
  That employment is ending and why.
• Notice and last day
  The notice period, whether it is worked or paid in lieu, and the last day.
• Final pay
  Pay up to the last day, holiday pay and any other payments.
• Benefits
  What happens to benefits such as health cover.
• Company property
  What must be returned and by when.
• Continuing obligations
  Confidentiality and any other duties that continue.
• Right of appeal
  How and by when the employee can appeal, if they can.

How to Write an Employment Termination Letter

A termination letter should be clear, factual and calm. It confirms a decision, so it is not the place to argue the case again. When you write one:

• Follow a fair process first
  Investigate, meet the employee, let them respond and consider alternatives before deciding. The letter then records the outcome.
• State the decision and reason plainly
  Say that employment is ending and give the reason in a sentence or two, consistent with what was discussed at any meeting.
• Get the dates right
  Check the notice the employee is entitled to under their contract and the law, whether it is worked or paid in lieu, and the exact last day.
• List every payment
  Set out final salary, holiday pay, notice pay and any other sums, and when they will be paid.
• Cover the practical points
  Company property to return, access to systems and premises, and benefits that end.
• Remind them of continuing duties
  Confidentiality and any restrictions in their contract that continue after they leave.
• Offer an appeal
  Give the employee a set time to appeal in writing and say who will hear it.

Common Mistakes to Avoid

Sending the letter before any process has taken place is one of the most common and costly mistakes. A letter cannot make an unfair decision fair. Giving a reason in the letter that differs from the reason discussed with the employee, or adding new allegations, can also undermine the decision.

Getting notice and final pay wrong is another frequent problem. Check the contract and the legal minimum, and remember that pay for untaken holiday is usually due. Avoid emotional or personal comments and keep the tone respectful, as the letter may later be read by a tribunal or court. Keep a copy of the letter and a record of when and how it was given to the employee. If the role itself is no longer needed, use a Redundancy Letter instead.

How It Works on Robot Lawyer

1. Answer the questions
   Tell us about the employee, the reason, notice, final pay and appeal.
2. Generate your letter
   We draft a clear, professional letter from your answers.
3. Get it verified
   On the Verified plan, a qualified legal professional checks your letter within 24 hours and makes amendments where needed. The Essentials plan does not include this check. See how our documents are verified.
4. Send it
   Download it, sign it and give it to the employee, and keep a copy.

What Your Document Looks Like

Your letter is a short, formal letter on your letterhead: the decision and the reason, notice and last day, final pay, benefits, company property, continuing obligations and any right of appeal, ending with a signature. Here is an extract from a sample letter we generated:

Notice and last day

Your dismissal is summary dismissal for gross misconduct. Your last day of employment is 17 November 2026, and your employment ends on that date without notice or pay in lieu of notice.

How It Works in Different Countries

• UK
  Employees usually need two years' service to claim unfair dismissal in Great Britain, falling to six months where employment ends on or after 1 January 2027, and one year in Northern Ireland. Employees are entitled to minimum notice and to pay for holiday they have not taken. Follow a fair process, such as the Acas Code of Practice, before deciding to dismiss, and give the employee their P45 after their final pay.
• United States
  Most employment is at will, but some states set strict deadlines for final pay, and eligible employees must be told about continuing health cover under COBRA.

These notes are general. Check the current rules where the employee works.

Employment Termination Letter FAQs

Do I have to give a reason for dismissal?

It is good practice, and in many countries the employee can ask for written reasons. Your letter states the reason you give.

Does the letter end the employment by itself?

The letter confirms a decision that should already have been made through a fair process. It is not a substitute for that process.

What final pay is the employee due?

Usually pay up to the last day, pay for holiday not taken and any notice pay. Your letter lists each payment.

Can the employee appeal?

Yes. Your letter offers a right of appeal in writing within a set time. If you don't name who will hear it, the letter leaves a blank line for you to fill in.

Can I give a termination letter by email?

Usually, yes, unless the contract says otherwise. Keep a record of when it was sent and received, as notice usually runs from when the employee receives it.

Do I have to give a reference?

There is usually no legal duty to give a reference, but any reference you do give must be accurate and fair.

What is the difference between a termination letter and a dismissal letter?

They are often the same thing. A termination letter can confirm any ending of employment, including the end of probation or a fixed-term contract, while a dismissal letter usually follows a disciplinary process.

Should I give the letter in a meeting?

Where possible, tell the employee the decision in person first, then give them the letter so they have the details in writing.

Is the employee paid for unused holiday?

In most countries, yes. Pay for holiday earned but not taken is usually due when employment ends, and your letter states how it will be paid.

Can I use this letter outside the UK?

Yes. Your letter is drafted under the law of the country or state you choose. Our lawyers are qualified in England and Wales and, on the Verified plan, check documents for good practice, clear formatting and the law of England and Wales. They are not qualified in other countries' law, so if your letter is governed by another country's law, we recommend having a local lawyer check it too.

Create an Employment Termination Letter

Confirm the end of employment clearly and professionally. You can start with a 7-day free trial. See our pricing for the plans. Related documents: Redundancy Letter, Dismissal Letter and Change of Employment Terms Letter.