What Is an Employee Termination Form?
An Employee Termination Form is a legal document that employers can use to notify their employees that their employment has been terminated.
- Employee Termination Letter.
The purpose of the document is to provide details to an employee as to why their employment has been terminated, the termination date, the payments that will be made to them (if applicable), and other important terms.
Employee termination can take place due to various reasons, which may include:
- Expiration of the Contract. Sometimes employers sign contracts with their employees for a stated duration. For example, if the Employment Contract has been signed for one year, when the expiration date is approaching and the employer is not interested in prolonging the contract, they can send an Employee Termination Letter to the employee.
- Layoffs. Usually, employees can get laid off for different business reasons, like downsizing or cost reduction. Nevertheless, an Employee Termination Letter can be used in this situation as well, due to the necessity to provide laid-off employees with important information concerning their employment termination.
- Employee Misconduct. In this case, the Employee Termination Form is generally handed to the employee after the first Employee Warning Notice. The notice is supposed to warn the employee about possible consequences that might take place if they will not make improvements (including employment termination) concerning the subject of the notice. If the employee chooses to ignore the subject of the warning notice, they will receive a termination form.
- Voluntary Termination. If the employee wants to voluntarily quit their place of work, they need to submit a Two Weeks Notice Letter to their employer. In response to this, they will receive a termination form where their employer will express acknowledgment of the situation and their acceptance of it.
In some cases an employer can attach an Employment Termination Agreement to the termination letter, that will regulate the relationship between the employer and the employee after their employment has ended.
How to Write a Termination Letter to an Employee?
Writing a Termination Letter to an employee is a straightforward question. An Employee Termination form template should contain parts such as:
- The Termination. In the first part of the letter, the employer should state that the employee is being terminated. This part is supposed to express the main idea of the documents which will be supported by the details that will be provided below.
- Reasons for the Termination. Here the employer should designate the reason(s) why the employee has been terminated. It can include the description of the misconduct, the list of company policies that the employee has violated, layoff, or other reasons.
- Employee’s Benefits and Payments. In this part of the document, the employer should state whether the terminated employee is entitled to any bonuses or compensations (for example, compensation for their remaining vacation days). They should also state when the employee may receive the rest of their salary for the current work period.
- The Date of Termination. The employer should state the exact date of the employment termination. It will help to avoid any misunderstanding and the employee will understand when their last day at work will be.
- Return of Possessions. The letter should contain a reminder for the employee to return any company property that they have used during their employment. It can be a laptop, a mobile phone, company car, etc.
The employer can include other parts in the document, depending on the circumstances of the situation. Generally, the process of employment termination goes smoother when the employer uses a checklist. It should contain all of the most important stages of the process and may include an exit interview, preparing appropriate documents, calculating the final paycheck, etc.
How Long Do Employers Keep Employee Records After Termination?
According to federal guidelines employers are required to keep different types of data for certain periods of time after the employment termination. It can include:
- Personnel and employee records are supposed to be kept for one year.
- Payroll records are supposed to be kept for three years.
- Employee benefits plans are supposed to be kept for at least one year.
- Wage rates, job evaluations, and all other records that explain the basis of paying different wages for employees of different sexes at the same company must be kept for at least two years.
These regulations are established by the U.S. Equal Employment Opportunity Commission (EEOC), the Age Discrimination in Employment Act (ADEA), and the Fair Labor Standards Act (FLSA) in order to guarantee all employees have the same amount of rights and avoid discrimination.
Related Tags and Templates:
Use this form when it is decided that an employee will be terminated or let go from their position by their place of work.