EMPLOYEE TERMINATION LETTER
[Company Letterhead]
[Date]
CONFIDENTIAL
[Employee Name] [Employee Address]
Re: Termination of Employment
Dear [Employee First Name],
This letter confirms that your employment with [Company Name] ("Company") is terminated effective [Termination Date] ("Separation Date"). This letter outlines the terms and details of your separation.
1. REASON FOR TERMINATION
1.1 Your employment is being terminated for the following reason(s):
[ ] Position Elimination/Restructuring — Your position of [Job Title] in the [Department] is being eliminated due to [restructuring, reorganization, reduction in force, business conditions].
[ ] Performance — Despite previous discussions, coaching, and the performance improvement plan dated [Date], your performance has not met the required standards, specifically: [brief, factual description].
[ ] Conduct — [Brief, factual description of conduct violation, referencing specific policies].
[ ] End of Contract/Assignment — Your [fixed-term contract/temporary assignment] concludes on [Date].
[ ] Mutual Agreement — Per our discussion on [Date], both parties agree to end the employment relationship.
2. FINAL COMPENSATION
2.1 Final Paycheck. You will receive your final paycheck covering wages through [Termination Date], including:
- Regular wages through [Date]: $[Amount]
- Accrued, unused vacation/PTO ([Number] days): $[Amount]
- Less applicable tax withholdings and deductions
2.2 Payment Method. Your final paycheck will be [mailed to your address on file / deposited via direct deposit / available for pickup at HR] on [Date], in compliance with [State] law.
2.3 Expense Reimbursement. Submit any outstanding expense reports by [Date]. Approved expenses will be reimbursed within [30] days.
3. SEVERANCE (IF APPLICABLE)
3.1 [If applicable] Subject to your execution of the enclosed Separation and Release Agreement within [21/45] days and non-revocation during the [7]-day revocation period, Company offers:
(a) Severance Pay: $[Amount] (equivalent to [Number] weeks/months of base salary), payable in [lump sum / regular pay periods] beginning [Date].
(b) COBRA Subsidy: Company will pay [Percentage]% of your COBRA health insurance premiums for [Number] months.
(c) Outplacement Services: [Duration] of career transition/outplacement support through [Provider Name].
(d) Reference. Company will provide a neutral employment verification confirming dates of employment and job title. [Or: Company will provide a positive reference per the attached agreed-upon language.]
3.2 Severance is contingent upon: (a) signing the Separation and Release Agreement; (b) returning all Company property; (c) compliance with continuing obligations (confidentiality, non-compete, non-solicitation).
4. BENEFITS
4.1 Health Insurance. Your health insurance coverage ends on [Date — last day of month or termination date per plan]. You are eligible for COBRA continuation coverage for up to [18] months at your expense. COBRA enrollment information will be mailed within [14] days.
4.2 Life/Disability Insurance. Group life and disability coverage ends on [Date]. [Conversion options may be available — contact [Provider] within [31] days.]
4.3 Retirement Plan. Your [401(k)/pension] account remains yours. Contact [Plan Administrator] regarding rollover options. Company matching contributions are vested at [Percentage]% based on your [Number] years of service.
4.4 Stock Options/Equity. [If applicable] Per your Stock Option Agreement dated [Date], vested options must be exercised within [90] days of termination. Unvested options are forfeited. Contact [Equity Administrator] for details.
4.5 Flexible Spending Account. Claims for expenses incurred through [Date] must be submitted by [Date].
5. RETURN OF COMPANY PROPERTY
5.1 Please return all Company property by [Date], including: (a) laptop, tablet, phone, and chargers; (b) keys, access cards, and ID badges; (c) credit cards; (d) files, documents, and records (physical and electronic); (e) uniforms or branded materials; (f) any other Company-owned equipment.
5.2 Failure to return property may result in deductions from final pay (where permitted by law) or legal action.
6. CONTINUING OBLIGATIONS
6.1 Confidentiality. Your obligations under the Confidentiality Agreement dated [Date] survive termination. You must not disclose or use Company proprietary information, trade secrets, or client data.
6.2 Non-Compete. [If applicable] Per the Non-Compete Agreement dated [Date], you are restricted from [describe restrictions] for [Number] months in [geographic area].
6.3 Non-Solicitation. [If applicable] You may not solicit Company employees, clients, or vendors for [Number] months following termination.
6.4 Social Media. Please remove any Company affiliation from your professional profiles (LinkedIn, etc.) and refrain from representing yourself as a current employee.
6.5 Cooperation. You agree to cooperate with Company regarding any pending matters, litigation, or investigations related to your employment.
7. REFERENCES AND VERIFICATION
7.1 Employment verification inquiries will be directed to [HR Contact/Third-Party Verification Service] and limited to dates of employment and position held, unless otherwise agreed.
8. UNEMPLOYMENT INSURANCE
8.1 You may be eligible for unemployment benefits. Contact your state unemployment office or visit [State Website] to file a claim. Company will respond to unemployment inquiries factually and promptly.
9. ACKNOWLEDGMENT
Please sign below to acknowledge receipt of this letter and the enclosed documents. Your signature does not indicate agreement with the reason for termination.
[Company Name]
Signature: _________________________ Name: [HR Representative / Manager Name] Title: [Title] Date: __________
EMPLOYEE ACKNOWLEDGMENT
I acknowledge receipt of this termination letter and the following enclosed documents: [ ] Separation and Release Agreement [ ] COBRA Notice [ ] Benefits Summary [ ] Final Paycheck Information [ ] Non-Compete/NDA Reminder
Signature: _________________________ Name: [Employee Name] Date: __________
