What Is a Layoff Letter?
A Layoff Letter is used when a company needs to cut down on staff, whether that is due to a merger, buyout, economic downturn, or decrease in business. A layoff is different than firing staff since the employees are not at fault for their loss of employment. No matter the size of your organization, you will want to use an employee Layoff Letter when notifying employees of their change in employment for legal reasons and to offer the employees assistance.
Check out our library below to download printable Layoff Letter templates.
How to Write a Layoff Letter?
To write a Layoff Letter to an employee, you will want to include the following information:
- Employee’s name, company ID number, and job title.
- Opening salutations to the employee.
- An explanation that due to recent changes within the company or outside economic forces, the company has made the decision to layoff the employee. Include that this is in no way due to their performance at the company and that you have included instructions for applying for unemployment support.
- As part of a sample Layoff Letter, you could include a statement such as, "our organization still maintains the highest amount of respect for you and the work you provided each and every day, and we wish you the best in your future endeavors."
- You will also want to list when their last date of employment will be, any additional severance pay due to them (such as paid vacation time or unpaid bonuses), and if they will need to return any equipment back to the company (such as a computer, company credit card, or cell phone).
- A statement that the company will still expect the employee to continue their normal day to day duties up and until the final date of separation, and that any proprietary information about the company will not be disclosed to a potential competitor. If there will be another person taking on their duties, you will want to have them agree to train the new person taking on these responsibilities before their last day of work.
- Any final statement on behalf of the company.
- Your name and signature (or of the head of the Human Resources department).
If this is a temporary Layoff Letter, your template should include an expected date that the employee can return to work and if they will be guaranteed that they will still have their old position. If a company is unsure of the date the employee can return, you will want to clarify that the return date is uncertain as of now for legal reasons and to allow the employee the ability to search for a new place of employment.
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