As an employer, terminating the employees if something goes wrong is an unavoidable fact that every one of you has to face. While it’s not a pleasant process, it’s a necessary one.
Whether the termination is voluntary or involuntary, you should have a proper procedure in place to manage it as painlessly as possible. And this procedure includes sending a clear and well-crafted terminating letter in order to keep your employee well-informed about the termination. This will help them move forward beyond their time at the organization.
Here readymade employee termination letter format comes in handy. This blog will help you with everything related to a employee termination letter for an employee.
Before we look at how to write a employee termination letter, it is very important for you to know what termination actually means.
The term employee termination means the end of an employee’s work with the company. An employee may be terminated from work of their own free will or by the employer’s decision. Employers who are terminating an employee may do it for various reasons like poor performance, downsizing, or redundancies.
Let’s look at the few types of employee termination first.
In Voluntary Termination, the employees themselves take the initiative to leave the company. The decision for leaving, as such, can be for many professional or personal reasons. For instance, the reason could be toxic work culture, fewer or no growth opportunities, or employee development, or the reason could also be some of their personal problems.
In this type of termination, the employer ends an employee’s work with the company. It can be for unacceptable behavior, poor performance, violation of company rules, etc. Involuntary termination can also be the result of an employee’s disciplinary action.
This type of termination states that an employer can terminate an employee at any time without any reason. In this, the employer does not need to give any reason to the employee. However, if a discrimination claim should ever be made, employers must be able to prove their case.
This termination occurs when both parties decide they are not a suitable fit, as the name implies. Given that it is a mutually decided decision, this kind of termination is much less messy.
There could be many reasons for employee termination. The reasons could be from both the employee’s and employer’s points of view, which include:
From the employee’s Point of View
From the employer’s Point of View
In all such cases, an employee termination letter works best for terminating an employee officially and in a legal manner.
Further, we will know what a employee termination letter is and how you can write employee termination letters to your employees.
So, what is a employee termination letter exactly?
An employee Termination Letter, also known as a notice of termination, pink slip, or letter of separation, is a formal written document that notifies an employee that they are being terminated from their employment. This might be due to poor performance, unacceptable behavior, layoffs, incompetence, or any other justifiable reasons.
Issuing a employee termination letter is the final step of an employee’s lifecycle in a particular company. It equips employees with all the knowledge they need to properly begin the offboarding process. Additionally, it helps in the proper termination of employees (or the proper layoff of employees in the case of termination for good reason) to assist you to avoid any misunderstandings or legal issues.
No of the circumstances surrounding the termination of an employee’s employment, the following details ought to be included in your termination letter format:
There are various reasons why it is important for you to issue an employee termination letter while firing or laying off someone:
One of the worst experiences in professional life is getting fired. It is the thing that an employee dreads the most, so it is to be expected that termination will stir emotions. It is your responsibility as HR to make the procedure as simple as possible.
We hope you now have a better grasp of employment termination in order to conduct this process quickly. To get access to the readymade employee termination letter format or other HR documents, get access to the UBS HR Toolkit for free.