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HomeTemplatesSample Letters to CandidatesContract Termination Letter Sample

Contract Termination Letter Sample

If you need to advise a jobseeker that they haven’t made the next round in the application process or been selected for the vacancy, one easy way to do so is with a letter of refusal email. Applicants appreciate receiving official notification that they’ve been unsuccessful because it helps them to gain closure and it makes them feel respected. It positions the company as an organized, empathic body and fosters positive relations with the prospective employee community.

Use this contract termination letter sample as guide while you assemble your own template letter and customize your document for specific situations.

Do note, this contract termination letter sample may not perfectly reflect your circumstances, but the language and formatting used here can serve as a starting point. As you can see, this contract termination letter sample is divided into basic sections or paragraphs, each of which should feature in your own message: a clear, concise summary of the fact that you’re ending your working relationship with an employee, a set of next steps, and a point of contact for further information. If you’re not firing an employee for behavioral or performance-based issues, you may also want to include a paragraph that commends them for their good work.

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Contract Termination Letter Sample

Ellen Johnson

Operations Director, Quality Business Co.

143 Busy St.

Stanton, TX 39233

Steve Grabowski

8372 Workton Rd.

Bustle, NM 93028

Dear Mr. Grabowski,

This letter communicates the termination of our at-will employee agreement, established May 4th, 2015 between Quality Business Co. and you, Steve Grabowski. This relationship will end as of July 19th , 2017.

We’ve enjoyed our relationship and we appreciate the hard work and dedicated service you’ve provided to Quality Business Co. over the past two years. Unfortunately, as a result of falling market share and the transition of our industry beyond state lines, our financial circumstances have shifted and we can longer maintain your position at this time.

Please turn over all of your existing projects to your supervisor and return your company issued equipment, including your smartphone and laptop, to the HR department. As per company policy, when the equipment has been received, we will authorize final payment for your remaining unused 15 hours of vacation time. Your final paycheck will be issued on July 20th, 2017.

Again, thank you for your loyal service to Quality Business Co. If you have any questions regarding the details of this contract termination, please use the contact information below to reach my office at any time.

Sincerely,

Ellen Johnson

EJohnson@Qualbiz.com

293-283-4859

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As per the above contract termination letter sample, it’s considered best practice to communicate the grounds for termination. Some states even require employers to divulge this information. No matter if you’re in one of these geographic areas of not, you may still want to include a brief description of your reason for termination so that if your past employee does raise a charge against you, you have proof to support your own claim.

Additionally, as you’ll see in the above example, there is reference to the fact that the relationship with the employee is valued. If this is true, you may want to consider including something like this as it can possibly mitigate any ill will the employee may be experiencing.

Use this contract termination letter sample as a guide, but before you send your letter, give your legal team an opportunity to thoroughly review your text and tone. Even the smallest error or slightest misleading statement can render your organization vulnerable to damaged business relationships at best and legal action at worst. Provide all the detail necessary to deliver a clear message, but don’t provide so much detail that you expose yourself to a possible lawsuit. And each time you edit or make changes to your draft, bring your team into the loop.

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