Drafting a proper termination letter

Terminating the employment relationship with an employee is never easy. Yet when the time has come to let an employee go, it is important to do it the right way. Oftentimes employers get into trouble for how a termination occurred, not why. Drafting a proper termination letter can help avoid such problems.

Employers may wish to include the following in a termination letter: (1) Notice that the action was a termination; (2) The date of the termination; (3) The reasons for the termination ­– avoid being too vague or too specific; (4) The dates and subject matter of prior warnings – this is especially useful when documentary evidence supports prior discipline; (5) Benefits to which the employee is entitled; (6) Circumstances under which the employee had access to a second review or appeal of the termination – here is where an employer may agree to characterize the employee's departure as a layoff, resignation, or retirement; (7) The employee's last day of work and what company property must be returned by that date; and (8) The date, time, and place for an "exit interview" – at the exit interview, the employer should notify the employee that a paycheck for final wages, including accrued unused vacation time, will be provided.

At the termination meeting, the employee should be given the original letter. Employers would be wise to also give a copy of the letter to the employee’s immediate supervisor and place an additional copy in the employee’s personnel file.
While there are no guarantees that a terminated employee will not seek redress after a termination, a properly drafted termination letter goes a long way to prevent problems down the road.