What is the Termination Letter?

What is the Termination Letter?

A termination letter is a necessary part of the employee termination process. The termination letter is an official letter and can be written for many reasons. It can be written to: End employment, End a contract, End an agreement, End any services, End a lease, etc. The reasons can be many and it is important for you to make use of the business letter format in order to write such a letter. The most common reason to write such a letter is employee termination. However, terminating an employee can be a difficult task as it has several technicalities and documentation associated with it.

Have you heard about the contract termination letter? It is the common type of termination letter that is written to end a business relationship with the contracting party. The termination letter is moreover like the cancellation letter because the objective of both the letters is the same. The word termination sounds more offensive in comparison to the term cancellation. The Termination Letter is your written record to help protect you if any questions or legal issues arise regarding the termination.

The termination letter is more like a penalty given to an individual is he or she is guilty of anything. If the employment relationship is not based on any kind of contract, then the termination letter can be issued without providing any adequate reason. Termination letters are also called a pink slip, letter of termination, contract termination letter, letter of separation, and a notice of termination of employment.

Giving the termination letter is the most daunting task. It is not always easy to say to an employee that he or she is terminated. Ending a contractual agreement is a painful task but an employer should do it in a most convincing way. Make use of the words that can show some professionalism and courtesy.

Tips to follow while writing a termination letter –

Following are the few tips that you need to follow while writing a termination letter:

  • Don’t make use of words that can hamper the reputation of an individual.
  • Write the letter, in such a way that the reader can find it easy to digest the difficult truth of life.
  • Don’t try to show your aggressive tone in such a letter. Try to be polite while being straightforward.
  • Give the reason for termination, because the reader has the right to know the true reason.
  • Add all the termination related information related to date, timeline, final decision, etc.


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