Termination Letter — Free Employee Termination Letter Template
A termination letter puts an employee's last day, the reason for the decision and the practical next steps in writing, so there's a clear record and no confusion about final pay or benefits. Answer the questions below and your letter fills itself in as you type.
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October 15, 2026
[Employee's full name]
Re: Notice of termination of employment
Dear [Employee's full name],
This letter confirms that your employment with [Company name] will end effective [Last day of employment].
This decision is the result of [Main reason].
Final pay: [Final pay details]
If you have any questions about this letter, your final pay or your benefits, please contact me.
Sincerely,
[Your name (the person signing)]
[Your job title]
[Company name]
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Templates for your situation
Each version starts with the right wording for that situation already filled in.
What to do, step by step
Review the file before deciding
Check prior warnings, performance reviews, any contract or union agreement, and your employee handbook. The reason in the letter should match what the records show.
Check final pay and benefits rules
When the final paycheck is due, and whether unused vacation must be paid out, varies by state. Some states require payment on the last day. Confirm the rules for the employee's work location before you set a date.
Fill in the letter
Answer the questions above. Keep the tone calm and factual. State the decision clearly, give a brief reason, and explain final pay, benefits and returning company property.
Get a second look for higher-risk cases
If the employee recently complained, took protected leave, raised a safety or discrimination concern, or has a contract, get legal help or HR review before sending the letter.
Deliver it in person, then in writing
Tell the employee in a private meeting with a witness, then hand over or email the letter. Keep a signed or dated copy in the personnel file.
What if the employee disputes the termination?
Listen and stay calm. Let the employee explain their view, but don't reopen the decision on the spot. Point them to the person in the letter for questions about pay, benefits or returning property.
If the employee says the decision was unfair, retaliatory or discriminatory, take it seriously and document what they say. That's the point to involve HR or get legal help, especially if they mention a complaint they made or leave they took.
Former employees may file for unemployment benefits, and the state may ask you for information. Answer accurately and consistently with the termination letter. Whether someone qualifies is decided by the state, not by the letter.
Example termination letter
A filled-in sample with made-up details, so you can see the finished result.
Northgate Dental Group
October 5, 2026
Tyler Brooks
Re: Notice of termination of employment
Dear Tyler Brooks,
This letter confirms that your employment with Northgate Dental Group will end effective October 9, 2026.
This decision is the result of continued performance concerns that have not improved despite prior feedback and warnings.
As discussed in our meetings on July 14 and September 2, and in the written warning dated September 2, appointment scheduling errors continued after the agreed 30-day improvement period.
Final pay: Your final paycheck, including pay through your last day and your accrued, unused vacation, will be paid by direct deposit on October 16, 2026.
Benefits: Your health coverage will continue through October 31, 2026. You will receive separate information about continuing coverage under COBRA.
Please return all company property, including your office keys, ID badge and company laptop, on or before your last day.
If you have any questions about this letter, your final pay or your benefits, please contact me.
Sincerely,
Lena Ortiz
Practice Manager
Northgate Dental Group
Frequently asked questions
Do I have to give a reason in a termination letter?
Many US jobs are at-will, which means an employer often doesn't have to give a reason, but a few states have rules on service letters or written reasons on request. Giving a brief, honest reason that matches your records is usually the clearest approach.
When is final pay due after termination?
It depends on the state. Some states require the final paycheck on the last day, others by the next regular payday, and rules on paying out unused vacation also differ. Check your state labor department's guidance before setting the date in the letter.
Should a termination letter mention COBRA or health insurance?
If the employee has health coverage through you, it's helpful to say when coverage ends and that information about continuing coverage will follow. Employers covered by COBRA or similar state rules must send a separate notice, usually through the plan administrator.
Should I ask the employee to sign the termination letter?
Some employers ask for a signature to confirm the employee received the letter, not that they agree with it. If you do, make that clear. An employee who refuses to sign still has been given notice; note the date and who was present.
Can I offer severance in a termination letter?
You can mention it, but severance offers often come with a separate agreement, such as a release of claims, that has its own requirements. Release agreements can have specific rules depending on the employee's age and location, so get legal help before preparing one.
FairLetter is not a law firm and does not provide legal advice. Letters are templates you customize and send yourself.