Letting go of an employee is never pleasant, but regardless of the situation, you need to send a notice of termination to an at-will employee or service provider that clearly and concisely documents the end of the working relationship.
This email should formalize the end of employment and give the recipient all the information they need to make the transition. However, it should preferably not be used to inform the worker they’ve lost their job for the first time – an email can be quite impersonal and most workers would prefer to receive this news in person.
Even in the case of at-will employment, you should consider including a short explanation of the reason you’re bidding the person farewell in the mail (this is even required in some states). Just make sure that your reasoning is not unlawful or discriminatory, and does not violate company policies.
Remember to also show your compassion for terminated employees by attaching any information that will help them wrap up their business at the company and move forward. For example, you could attach forms they need to fill out to continue certain benefits or put them in touch with outplacement services.
You can model your end of contract email on the example below.
Example of an End of Contract Email
Subject: Termination of Employment at Construction 1000
Dear Mateo Valdez,
Since early 2016, Construction 1000 has been experiencing a decline in work amidst an increasingly competitive environment. We have considered ways we can enhance our services to better profits, but we have decided we need to take other steps to address the financial strain we’re under. Consequently, we are downsizing by laying off 15 employees who have been with the company for less than one year.
In line with this strategy, we’ve had to eliminate your role as Junior Project Manager as of January 31, 2017. We recognize how difficult it is to receive such news, and we regret having to take this action.
You will be paid as normal for your final month of work, and payment will reflect on your termination date. You will also be compensated for your 6 unused vacation days. You will no longer be entitled to company benefits after January 31, 2017. Attached you’ll find information about how to continue health insurance by electing COBRA coverage. We have also attached conversion forms to complete to convert your group term life insurance plan to an individual policy.
If you have any questions about the above, please contact Miriam Gube at hr@construction1000.com. A meeting request for an exit interview will be sent to you shortly by email.
Also attached is a list of company property that’s currently in your possession. Please return all these items by January 31, 2017.
Thank you for the contributions you’ve made to the company. We wish you well.
Sincerely,
Devin Cross
HR Leader
Construction 1000
{Alternatively insert email signature here}
Want to use this letter?
For obvious reasons, this is one email you don’t want to disappear in the recipient’s inbox, so mark it as urgent; include a clear, unambiguous subject line (like the one above); and request a read receipt.
You’ll see in this example of an end of contract email, an effort has been made to explain the thinking behind termination. The idea is to avoid any language that might make your company’s actions sound unfair. Generally, the more concise the explanation, the better.
This email also includes attachments to help make the process of finishing up the job and preparing for unemployment smoother. Just ensure that any forms you attach are .PDF files so that they cannot be edited.
It’s also a good idea to get the employee to sign a hard copy of the email to indicate that they did read it. Similarly, to protect the company from lawsuits, ask a legal representative to look over the email before you send it.