A termination letter is simply a formal letter given to an employee by the higher authority stating the reason for his termination. The employers write a termination letter when they fire an employee for poor performance and attendance. It will have few details like the date till he can work, the reason he is being fired for, etc.
Outline of Termination letter
The format for a termination letter is the same as any other formal letter. It includes the address of the sender (which is the employer in this case), the receiving address and the other parts like salutation, subject body of the letter and an ending.
The subject is too obvious in this case, it would simply be- “Termination letter”, or something short and similar that would mean the same. Even though the letter like any other, is written in a polite way, the content is hurting and hence care should be taken that you mention valid reasons in the letter. The body of the letter should contain the reasons why he is being fired and hence tell him the areas where he needs to improve to reconsider him in the organisation. You might like Transfer Letter To Employee.
- Basic Info:The name of the employee who is being terminated, his address, the company name and the company address.
- Reason for Termination: Like mentioned above, the contents reasons should be valid and help out the employee to focus on the skills which he need to develop to join in the same role in your or any other organisation.
- Lead Up: Well, this is something like a reminder of the warnings and the number of times that you gave the warning to that specific employee which he never took seriously.
- Company Property: Most of the companies nowadays provide some of the essentials to the employees when they join. It could be laptop, company car (for someone in the higher posts) or simply the company key card. You have all rights to ask it back from the employee while you sent him away from your company.
- Final Pay:When you are telling good bye to your employee, he should be given whatever he deserves, i.e. the remaining salary for which he has worked in your company. That amount should be mentioned with the final month of his work cycle.
- Health Insurance & Other Benefits:Companies provide their employees with health insurances and other benefits like provident fund, etc., when the employee is making an exit from the company, you should be giving him a know how on which among those and how long those benefits will continue. You might like Resignation Letter Sample.
Sample Employee Termination Letter :
The above content contains the points to be mentioned while writing a termination letter for poor performance. Make sure that you mention all those key points when you are giving a letter to your employee, give him the benefits that a company would provide and give him valid reasons why he is no longer needed in your company. The employee should understand his level and where he needs to tighten his skills to get the same level or a better job.
You can follow the templates given here for your reference.