There are many rules you must follow when giving an employee their notice of termination.
However, there are other things that will help to protect your business which aren’t set out as legal requirements. Such as providing the employee a notice of termination of employment letter.
What is a termination of employment letter?
A termination letter is a formal letter to notify other parties of the end of an employment contract.
Employers or employees can initiate the termination, but for this guide we’ll cover what an employer should include in their notice of termination to a member of staff.
An employer’s notice of termination letter should include:
- Reasons for dismissal.
- The date the employment ends.
- Confirmation of final pay and arrangements for unused holidays.
- Details of company property that the employee must return.
Why it’s important to provide a termination letter
Terminating an employee’s contract can be difficult and awkward. It’s easy to say the wrong thing when trying to comfort a long-term employee.
Having a termination of employment letter makes sure all the correct information is passed on to the employee.
Additionally, you need to provide valid reasons for ending someone’s employment contract. This is to prevent unfair dismissal, wrongful dismissal and discrimination. Having a record of these reasons in writing will protect you if the employee takes the termination to tribunal.
The list of fair reasons for dismissal includes:
- Conduct: harassment, damage to property, etc.
- Competence: their capability to complete the job.
- Redundancy: if you need to reduce the workforce.
- Breach of statutory restriction: loss of right to work in the UK or loss of license required for them to carry out a role.
- Some other substantial reason (SOSR): A substantial reason not covered by the other potentially fair reasons. For example, a breakdown in relationships between employees that can’t be fixed.
What to include in a termination of employment letter?
Providing notice of termination of contract with a letter will:
- Confirm reasons for termination of employment.
- Provide records for your company.
- Give employees all the information they need.
Your notice of termination letter should include the reasons for the termination, the employee’s end date and the notice period required. This should meet the minimum period of notice for terminating employment and should be covered in the employment contract.
If you are providing payment in lieu of notice, the termination date is immediate.
Download our termination of employment letter example
You can download our sample termination letter by entering a few details below.
After that, you just need to add the employee details to the template, and you have a termination of employment letter ready to use.
For more specific help with your employment needs, get in touch with us by calling 0800 028 2420.
Disclaimer: This template is provided ‘as is’ and Peninsula Business Services Ltd excludes all representations, warranties, obligations and liabilities in relation to the template to the maximum extent permitted by law.
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