Termination of employment letter 

Termination of employment letter 

A termination of employment letter is a formal document that officially notifies an employee that their employment is ending. 

A clear and compliant employment termination letter helps ensure compliance with current legislative requirements, which differ by jurisdiction. An effective termination letter makes the termination process straightforward for both the employer and the employee. It also clearly states the next steps, helping the departing employee understand and follow the necessary offboarding procedures. This document is sometimes called a letter of termination, employment termination letter, notice of termination, or letter of dismissal. 

Do employers have to give a letter of termination? 

Providing a written termination of employment letter is often necessary, but it’s always best practice to protect your business and ensure a smooth offboarding. Whether a formal letter is necessary depends on factors like the terms of an employment contract or collective agreement and applicable legislation. A clear, written termination letter documents the termination, clarifies details like the final day and pay, and ensures compliance with employment legislation. Failing to provide a termination letter can result in misunderstandings, disputes, and even costly litigation. To help protect your business, you should issue a formal letter of termination whenever possible.  

Need help getting started or updating your current termination letter format? Check out our blogpost, How to Write a Termination Letter, for tips, insights, and sample letters backed by our HR experts.