Letters of Termination of Employment Contracts

Termination letters are written statements from the employer. The letters outline the reasons why the employer has decided to terminate the employee's contract of employment. The termination letter is a common procedure for companies who wish to terminate an employee. While some employers allow the employee to defend himself before the final termination, some use the termination letter as the final step in a series of warnings.

Termination Letter Content

The termination letter explains why the employee is being terminated. It presents the company's mission statements and goals to remind the employee what the company strives for. It also displays all of the warnings the employee has received during the period of employment. For instance, the company may strive for time effective and professional customer service. The employee may have received several warnings for not being nice to customers and being slow in getting back to customers via e-mail or phone calls. The letter should provide a context for the employee, so she knows why she is being terminated.

Comparing Letter to Contract

If the employee has an employment contract in place with the company, it should be addressed in the termination letter. The terms and conditions of the employment contract should contain a list of expected tasks and responsibilities of the employee at the time of hire. The employer can use this list to prove that the employee has not worked as expected in the contract. The copy of the contract should be attached to the termination letter, if this method is used.

Using the Termination Letter

Do not simply hand the employee the termination letter and expect the termination to go smoothly. Allow the employee to read over the termination letter, so she understands why she is being terminated. Speak with her and explain the scenario to her. Go over every warning that has been issued to her throughout the employment and answer her questions. Give her a copy of the termination letter and keep one for company files.

Reason for Termination Letter

Rather than simply bringing the employee for a meeting, the employer types out a termination letter to protect the company. Since the employer explains the reasons why the employee is being fired in the termination letter, the employee cannot make up reasons for being terminated and sue the company for unlawful or unfair termination. The employer also keeps the termination letter, in case the employee applies for a job with the company in the future. The termination letter can remind the employer of why the employee was terminated as part of the evaluation process.

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About the Author

Based in Toronto, Mary Jane has been writing for online magazines and databases since 2002. Her articles have appeared on the Simon & Schuster website and she received an editor's choice award in 2009. She holds a Master of Arts in psychology of language use from the University of Copenhagen in Denmark.

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