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An Employee Termination Letter is a document that employers use to terminate employees. In this letter, the employers let former employees know all the details of their termination, such as why they were terminated, how they will receive their final paycheck, and any information regarding benefits or accrued time off that the former employee needs to know. Employee Termination Letters are generally one-sided, in that there is no negotiation and the employer is merely alerting the former employee to need-to-know exit information.
Employee Termination Letters are a courtesy that a company provides to a former employee and not a legal requirement. However, having a termination letter on file is always a good idea in the case of any unforeseen claims made by the employee against the company or in the attempt of the former employee to collect unemployment pay.
How to use this document
This Employee Termination Letter outlines the grievances that the company has against the former employee, including, if applicable, policy violations committed by the employee. The letter also includes information about types of warnings given to the employee regarding their behavior, as well as final paycheck and benefit information.
Before attempting to complete this document, ensure that the human resource representative filling it out has all the required information about the actions that the employee committed that led to their termination. This may involve doing technical checks, speaking with the former employee's supervisors, and consulting the former employee's file.
In this document, the employer will be able to outline the following information (and more):
- What company policies the employee failed to comply with
- How they were cautioned against this behavior
- What benefits they are still entitled to
- When their final paycheck will be disbursed and how
The Employee Termination Letter should be used anytime a business intends to release an employee from employment. After it is filled out, it is a good idea to provide a copy to the former employee. It's also a good idea to keep the original document in the employee's file.
Employment in the United States is generally subject to the laws of the individual state, with the exception of things like fair labor laws promulgated by the federal government.
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