A termination letter from a small employer: what it states, what it leaves out, and the record it closes

A termination letter is a short document that states the decision, the effective date, what happens with final pay and benefits, what property is to be returned and who to contact with questions. It does not argue the case; the case is in the write-ups and the performance plan already in the record. The employee contract tool on this site prints the contract the letter refers to, free and without an account; the paid product keeps the letter with the record it closes.

What it states

That employment ends, on which date, and where the decision is for cause, the section of the handbook or contract relied on, briefly. The final pay date and method, accrued time off as the policy provides, benefits continuation information where it applies, the return of equipment and access, and a name for questions.

What it leaves out

A narrative of grievances, new allegations, and anything not already documented. The letter refers to the record; it does not build it. A letter that argues invites an argument. Anything that needs to be said about the record should already be in the record, dated, where the employee saw it at the time.

Final pay and the local rule

When final pay is due varies by state and by whether the separation was voluntary. The letter states the date the employer will meet; the policy in the handbook states the rule the employer follows. No figure is given here because the rule is the state's.

Closing the record

The letter, the write-ups, the plan, the review notes and the property return sit together in the employee's record, dated. HeadcountDesk Pro keeps them; the free tools print the documents that led here. From the vendors' own pricing pages, cited below: Homebase lists its Essentials plan at $30 per location per month billed monthly or $24 billed annually, with unlimited employees, and a Basic plan at $0 for one location with up to 10 employees; BambooHR starts at $10 per employee per month for Core and $17 for Pro; Deputy's Core plan is $6.50 per user per month. HeadcountDesk Pro is $24 per month per location.

Questions people ask about termination letter

Is a termination letter legally required?

Requirements vary by state; a written record of the date and the arrangements is good practice everywhere.

Should the reason be stated?

Briefly, by reference to the documented record, where the separation is for cause; the handbook's process governs.

Is the contract tool free?

Yes, without an account.

Sources

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