What is a termination letter?
A termination letter is a notice given to an employee to inform them of the end of their employment contract. They include details of their termination date, employee benefits, final paycheck, and anything else deemed necessary by the employer. Termination letters are initiated by employers. They are different from resignation letters, which are initiated by employees. Both result in the termination of the employment contract.
Why is a termination letter needed?
A termination letter is necessary to clarify details of the termination, including the termination date and evidence of why the employee is terminated. A layoff termination letter can be used in situations when a business must lay off employees due to costs. However, termination letters are also used when employees violate an employment contract.
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