"Employment Contract Termination Letter Template"

What Is an Employment Contract Termination Letter?

An Employment Contract Termination Letter is a letter used by employers who want to terminate an employee. The reasons for termination of the contract may be the following: low labor productivity, layoffs, redundancy, incompetence, unacceptable behavior, poor performance, misconduct, absenteeism, etc. An Employment Contract Termination Letter Format contains information about the reason behind the termination, provided warnings, benefits, and the amount of severance.

You can download our Termination of Employment Contract Letter template through the link below or create your own document with our online form-builder.

You can also use our basic Contract Termination Letter Template or our Business Contract Termination Letter Template if those better suit your needs.

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How to Write a Termination of Employment Contract Letter?

An Employment Contract Termination Letter consists of the following sections:

  1. The name of the company and the name of the employee;
  2. The subject matter of the letter;
  3. Reasons for termination of the contract. This part should inform that the recipient's employment with the company is terminated. An appropriate reason for termination of the contract and the warnings that were given to the employee must be specified too.
  4. Outstanding requirements. The employee must be notified that if he has a uniform, car, equipment, or anything that was provided by the company, it must be returned to the company;
  5. Important dates. The date of the last working day of the employee must be specified.
  6. Benefits. The employer must inform the employee about any benefits or compensation that may be guaranteed (insurance extensions, severance pay). The employer can offer them an alternative position within the company or assistance in finding another job. The company should also submit information about the payment of employee's accrued entitlements and outstanding payments, including superannuation;
  7. Signature.

Related Forms and Templates:

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Download "Employment Contract Termination Letter Template"

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Employment Contract Termination Letter
(Print on your business letterhead)
______________________________
Date
Private and confidential
______________________________
Employee’s Full Name
______________________________
______________________________
______________________________
______________________________
Employee’s Residential Address
Subject: ​ T ermination of your employment by reason of redundancy
Dear ______________________________,
The purpose of this letter is to confirm the outcome of a recent review by __________
____________________ (hereinafter referred to as the “Employer”) of its operational
requirements, and what this means for you.
As a result of
_ ____________________________________________, the position of
_________________________________ is no longer needed. Regrettably, this means
your employment will terminate. This decision is not a reflection on your
performance.
The Employer has made the following attempts to find you an alternative position
within the company: ____________________________________________________
____________________________________________________________________.
Employment Contract Termination Letter
(Print on your business letterhead)
______________________________
Date
Private and confidential
______________________________
Employee’s Full Name
______________________________
______________________________
______________________________
______________________________
Employee’s Residential Address
Subject: ​ T ermination of your employment by reason of redundancy
Dear ______________________________,
The purpose of this letter is to confirm the outcome of a recent review by __________
____________________ (hereinafter referred to as the “Employer”) of its operational
requirements, and what this means for you.
As a result of
_ ____________________________________________, the position of
_________________________________ is no longer needed. Regrettably, this means
your employment will terminate. This decision is not a reflection on your
performance.
The Employer has made the following attempts to find you an alternative position
within the company: ____________________________________________________
____________________________________________________________________.
Based on your length of service, your notice period is ___________________ weeks.
Therefore your employment will end on ___________________________________.
Due to your employment ending because of redundancy, you will be paid redundancy
pay of $ ______________ in accordance with the ____________________________.
This amount represents ______________ weeks’ pay which is based on your
______________ years of service.
Your employment will end immediately. Based on your length of service, your notice
period is ______________ weeks. Instead of receiving that notice, you will be paid
the sum of $ ______________, plus the redundancy entitlement set out below.
Based on your length of service, your notice period is
_ _____________ weeks.
Therefore your employment will end on ____________________________________.
You will also be paid your accrued entitlements and any outstanding pay, including
superannuation, up to and including your last day of employment. We thank you for
your valuable contribution during your employment with us. Please contact me if you
wish to obtain a reference in the future.
Yours sincerely,
______________________________
Employer’s Full Name
______________________________
Employer’s Signature
______________________________
Employer Position
Seal
PLEASE KEEP A COPY OF THIS LETTER FOR YOUR RECORDS
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