MightyRecruiterAs unpleasant as it is to have to write a letter of refusal, it’s an important way to inform candidates that their job application has been unsuccessful. This letter type can be issued in the case of unsolicited applications, to notify an applicant that they have not been selected for an interview, or to tell a shortlisted interviewee that they have not made the next round or been chosen for the position.
And if you do decide to end a relationship, you’ll want to announce your decision using a very clear but diplomatically written letter (or email).
A contract termination letter template, like the one below, can help you communicate all of the necessary information while maintaining a respectful tone (so you don’t mislead you reader or end your partnership on a sour note). Do keep in mind that this serves only as a basic outline; alter the contract termination letter template according to the demands of your situation and the nature of your relationship with your employee.
Contract Termination Letter Template
{Your own company’s name and address}
{Your recipient’s name and address}
Dear {Recipient},
As discussed, {our company} is terminating our partnership with you; your last day of employment will be {date of termination}.
This decision was made due to {reason for termination}.
As of the date of termination above, please return {any objects of company property, like office keys or a computer}. Please deliver these items to the central office or the head of human resources by {date}.
Please note that your final paycheck will be paid on {date}, and in line with company policy, any unused vacation time will also be paid accordingly on this date.
If you have any further questions or require instructions or clarification of any aspect of this process, please contact {contact person’s name} at {contact person’s address and phone number} by {date}.
Again, thank you for your service to {company name}.
Sincerely,
{Your name and contact information}
Want to use this letter?
As you can see, this is a very basic contract termination letter template, but it nonetheless contains three sections: 1) the primary announcement, 2) instructions and next steps for the termination process, and 3) an established point of contact for further questions, followed by a respectful sign-off.
This three-part structure may not align with all the needs and requirements of your specific circumstances, so feel free to add or remove sections as you choose.
For instance, if you provide your employees with certain benefits, like medical and dental insurance, you’ll want to provide information about how these benefits will be affected, what will happen next, and how the former employee can find out more. Similarly, if the terminated employee signed a non-competition agreement, you may want to mention that this is still relevant.
Another element you may want to consider including is a note of positivity or goodwill. Obviously, this is only something that you should incorporate if there truly is no bad blood between yourself and the employee. For example, perhaps your company has recently been acquired and you had no choice but to lay off redundant employees.
Finally, consider including a reason for termination. Some states require you to provide this information, but even if this isn’t the case in your locale, it’s nonetheless best practice as it can help support your case in the event the employee lays a claim against you.
Before you deliver your document, make sure it’s reviewed in full by your legal team, and keep in mind that the more information you provide, the more you may expose yourself to potential questions, concerns, and even legal backlash. Keep your message clear and to the point.