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Termination Letter for Poor Performance — Free Template

A termination for poor performance should rarely be a surprise. By the time you write this letter, the employee should already have had feedback, a written warning and a fair chance to improve. The letter's job is to confirm the decision and point back, briefly and factually, to that history.

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 continued performance concerns that have not improved despite prior feedback and warnings.

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.

Reference the documented history

Mention the dates of earlier meetings, written warnings or improvement plans, and the main expectation that wasn't met. You don't need to repeat every detail — a sentence or two that ties the decision to the record is enough.

If there's no written record of earlier feedback, think carefully before terminating for performance. Many employers give at least one documented warning and a set improvement period first. A warning letter can be a better next step if the problem hasn't been put in writing yet.

Be specific, not personal

Describe what the employee did or didn't do, not who they are. Missed sales targets for three quarters is specific and checkable; lacks drive is an opinion. Specific facts are easier for the employee to understand and harder to dispute.

Keep the tone neutral. Even if the situation has been frustrating, a calm letter reflects well on the company and keeps the focus on the practical next steps.

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 termination letter for poor performance

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 need to give a warning before firing for poor performance?

In many at-will jobs it isn't strictly required, but most employers do, and your handbook, a contract or a union agreement may require it. A documented warning and improvement period make the decision fairer and easier to explain if it's questioned later.

Can someone fired for poor performance get unemployment?

Often, yes. Many states treat simply not being good at a job differently from deliberate misconduct, and the state decides eligibility. Answer any state inquiry honestly and consistently with your records.

Should I mention the performance improvement plan by name?

Yes, if there was one. Naming the plan and its dates shows the employee was told what to improve and given time to do it. Keep the reference brief and factual rather than restating the whole plan.

Should I offer a reference after a performance termination?

Many employers confirm only dates of employment and job title for former employees, whatever the reason they left. Decide your policy in advance and apply it consistently. If you mention references in the letter, be clear about what you will and won't share.

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.