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HR Resources

Recruiting Solutions: Our Awesome Guide to Writing a Termination Letter in 2022

May 13, 2022

Tima Rassool

Tima Rassool

Content Writer

Have you recently started using recruiting solutions to hire top talent? Have you unfortunately made the wrong hire and are facing a difficult employee? Is the only way to move forward by hiring a new employee in their place? Well, it’s time to start writing a termination letter and start looking for a new hire!

What Is A Termination Letter?

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A termination letter is an official and professional way to document and describe the separation between the employee and employer. A termination letter typically includes information about why the employee is being dismissed. 

It will also include benefits or severance pay they may receive, the date of their final paycheck, and other details that are relevant.

Recruiting Solutions: How To Write A Termination Letter

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Letting an employee go is a tough task, and it’s important to make sure the employee doesn’t feel cheated or degraded. If your recruiting solutions are up to date, the employee should have received some warning that termination may be coming. 

You can start by arranging a brief meeting with the employee to let them know they are fired before sending them an official termination letter.

However, there may be some cases where you would need to let go of employees for a limited period of time, called furloughing. An employee furloughing is mandatory unpaid or partially paid time off.

During this period, employees are usually eligible for unemployment and other benefits, such as health insurance.

There are many reasons for furloughs, like cost reduction or organizational restructuring. Recruiting solutions come in handy in informing employees about this arrangement through an ‘employee furlough’ letter.

Both these letters should be written with two elements in mind: tone and compliance. It’s best to close (or pause, in the case of furloughs) your employment relationship with the employee on good terms. A fully compliant furlough or termination letter helps reduce the risk of lawsuits.

Below are some things to pay attention to:

  • Get in touch with a lawyer to know if you are legally allowed to terminate this employee and learn more about relevant terms. For example, in certain countries, you need to a period of time, severance pay, or reasons for termination. If it’s a layoff or furlough, there may be specific regulations in place. Recruiting solutions are great in situations like these!
  • Decide the last day before the termination or furlough with their manager or head of the department.
  • Gather all the policies in place after an employee has been terminated or furloughed, so you can remind them in your letter.
  • Use the below sample as a guide but keep the tone in mind of your final customized version. Be sensitive, but firm. If possible, ask a fellow HR colleague to read the letter and let you know if anything sounds wrong.

Sample Termination Letter

Dear [employee_name],

I’m sorry to inform you that as of [termination_date], you’ll be no longer employed with [company_name]. As discussed, we think this is the best decision, because of [insert reason for termination]. [This is the final step in our disciplinary process/ a decision we made after the end of your Performance Improvement Plan launched on _date.]

From [termination_date] on, you won’t be eligible for any compensation or benefits associated with your position. Please return [company property that must be returned] before [date] to the Human Resources office.

You are entitled to your salary up until [termination_date] and we’ll also compensate you for your remaining vacation days. We’ll also provide severance pay that will amount to [amount]. [You’ll receive a separate letter with the complete details of compensation or other related information you’re entitled to receive from us.]

Please keep in mind that you have signed a non-compete, non-solicitation, and non-disclosure agreement. If you have any information about our customers, employees, or other stakeholders stored on paper or on your personal devices, you must delete it immediately.

If you have questions or clarifications, I’m at your disposal for up to [five] working days after your last day of employment.

We wish you the best of luck.

[Your name and signature]

Sample Employee Furlough Letter

Dear [employee_name],

I’m sorry to inform you that your position will be put temporarily on furlough due to urgent business conditions, from [date] to [date]. Hopefully, we’ll be able to restore your employment after this critical time.

Here’s what to expect:

During this time you will [not receive any payments/receive an x% reduction in your salary] from the company. [You must also entirely withdraw from your working duties.]

If you receive employee benefits such as health or car insurance, the company will continue to pay them.

You may be eligible for unemployment benefits under certain criteria. Contact the [state unemployment department] for more information.

Your current PTO balance will remain the same. You can use your time off during this time if you wish to.

We commit to do our best to bring you back as soon as we can. If you need any clarifications, feel free to reach out to [me/HR] or [manager_name].

We wish you the best of luck.

[Your name and signature]

Conclusion

Before you write your termination letter remember to end things amicably. Recruitment is a moving target and unless you’re dealing with a truly bad-egg employee, it’s always best to leave the door open in case you ever want that person to walk back.

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Author

Tima Rassool

Tima Rassool

A wordsmith, storyteller, and content strategist – Tima is an MBA graduate with 6+ years of experience in the world of HR. With over 2,000 blogs under her belt, Tima's expertise and insights have helped businesses across the globe take their recruitment to the next level and stay ahead of the curve.

Turn top talent to employees fast

Hire, assess, onboard and manage top talent for every job. See how Elevatus streamlines everything; from acquire to new hire.

Request a demo