The importance of maintaining clear and standard communication is just as important during an employee’s offboarding journey as it is while onboarding. Composing final details in a termination letter is beneficial for both exiting employees and the organization and should be provided in both voluntary and involuntary situations.
While a termination letter provides written acknowledgement for voluntary terminations, it also provides guidance during an involuntary termination. Overall, the document provides a written record of what happened, helping to avoid future confusion or legal issues.
The Necessity of Termination Letters
Termination letters confirm the reason, timing, and procedure of an employee’s departure while keeping your company compliant. By clearly listing your reasons, you demonstrate non-discrimination. Make sure you keep a copy of the letter for your records in case they attempt to dispute it in the future.
Important Elements of a Termination Letter
Here is a list of the key elements of a termination letter:
- Date of Termination – State the exact date and time that the person’s employment will come to an end.
- Reason for Termination – This is the most important section of the letter. Here, you’ll describe the reason for the employee’s termination. Use clear, simple language, and stick to the facts. If the reason is voluntary, you can simply put “voluntary’. If it’s just a matter of poor performance, you can mention their failure to meet the standards of their performance improvement plan. Avoid generalizations and flowery or emotional language. Instead, list specific examples of poor conduct or performance. Speak for the company – not yourself.
- Exit Interview – Schedule their exit interview for the end of the employee’s last day. These interviews are valuable opportunities for HR. You can ask how the employee feels about their time at the company, including what went well and what could be improved. The goal is for you to gather actionable information from candid feedback. Then, you can use that insight to update your company policy and boost retention rates.
- Next Steps – The employee may be in possession of company property, like a computer, phone, or badge. Let them know how to return it, the relevant deadlines, and any consequences if they fail to turn it in. Depending on their role, there might be other required steps in the separation process, like sharing passwords to company accounts. Make sure they understand what you expect of them. You can also tell them when to expect their last paycheck, in compliance with the final paycheck laws in your state.
- Contact Details – Expect the departing employee to have questions after they receive the termination letter. Let them know who to contact for more information, and how best to get in touch. In most cases, you should direct them to someone on the HR team, instead of their former supervisor.
