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End of Contract Letter — Free Template for Fixed-Term Employees

An end of contract letter confirms that a fixed-term or temporary job is ending as planned. It's usually the least contentious kind of termination letter, but it still matters: it gives the worker a clear last day, confirms final pay, and leaves the door open for future work if you'd hire them again.

Your details

No account needed. Your letter updates as you type.

Brief, factual and consistent with any earlier warnings. Leave out opinions and anything you can't support with records.

When and how the last paycheck will be paid, and whether it includes unused paid time off. Final pay rules vary by state, so check yours.

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[Company name]

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 the end of your fixed-term contract.

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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One-time payment, secure checkout by Stripe. FairLetter is not a law firm and does not provide legal advice. Letters are templates you customize and send yourself.

Check the contract first

Read the contract or offer letter for the end date and any notice requirement. Some fixed-term contracts say the job ends automatically on a set date; others require written notice a certain number of days in advance, or renew unless one side says otherwise.

If the contract requires notice, send this letter early enough to meet that deadline. If someone keeps working past the end date without a new agreement, the arrangement may be treated differently, so don't let the date slide by unaddressed.

Strike a positive tone

An end of contract is expected, so the letter can be warmer than other termination letters. Thank the worker, mention what they contributed, and say whether you'd consider them for future roles or provide a reference.

Still include the practical details: last day, final pay, benefits if any, and property to return. Final pay rules still vary by state, even when the end date was planned months in advance.

What to do, step by step

  1. 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.

  2. 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.

  3. 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.

  4. 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.

  5. 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 end of contract letter

A filled-in sample with made-up details, so you can see the finished result.

Northgate Dental Group

October 5, 2026

Grace Liu

Re: Notice of termination of employment

Dear Grace Liu,

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.

Your contract as a Temporary Dental Assistant covered the period from April 6 to October 9, 2026, while a team member was on leave. Thank you for your excellent work during this time. We would be glad to contact you about future temporary openings.

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 ID badge and scrubs, 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 need to give notice when a fixed-term contract ends?

It depends on the contract and where you are. Many contracts end automatically on a set date, but some require written notice or renew unless notice is given. Read the contract, and give notice in writing whenever you're unsure.

Can a contract worker collect unemployment when the contract ends?

Employees on fixed-term contracts often can, because the job ended through no fault of their own. Independent contractors generally aren't covered by regular unemployment. The state decides each case.

What if we want to extend the contract instead?

Then don't send this letter. Agree on the new end date and any changed terms in writing, such as a short extension letter or an updated contract, before the original end date passes.

Should the end of contract letter mention a reference?

If you would happily recommend the worker, say so. A short line offering a reference or inviting them to apply for future roles costs nothing and helps them find their next job. Only offer it if you mean it, and decide who will give the reference.

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.

FairLetter is not a law firm and does not provide legal advice. Letters are templates you customize and send yourself.