Quick answer
- For most at-will separations, use the simple termination letter: the end date, final pay, benefits and property return, with no reason you have to defend later.
- Check your state’s final paycheck deadline before the meeting. California requires all wages immediately on discharge; Texas allows six calendar days; many states use the next payday.
- All 9 templates are free Word or Excel files with a printable PDF. Letters have a copy button and open in Google Docs. No sign-up.
A termination letter template gives you calm, accurate wording for one of the hardest conversations a manager has, and a written record of what was said and paid. This page is for US small-business owners, managers and HR leads. Below are nine free templates: a simple employee termination letter for at-will separations, letters for poor performance, misconduct, no-call no-shows, layoffs, the introductory period and the end of a seasonal job, a notice of separation form built around California and New York requirements, and an Excel checklist with a final pay worksheet. Every letter of termination shows a filled-in example, and every template downloads as Word or Excel with a matching PDF.
Which termination letter do you need?
Choose by the reason for the separation. When in doubt, the simple letter is the safest choice for an at-will employee, because it states facts the employer controls: dates, pay and benefits.
| Situation | Best template | States a reason? |
|---|---|---|
| Any at-will separation | 1. Simple termination letter | No |
| Poor performance after warnings | 2. Performance | Yes, with facts |
| Theft, violence, safety or serious policy breach | 3. Misconduct | Yes, with facts |
| Several no-call, no-show shifts | 4. Job abandonment | Yes, the missed shifts |
| Position eliminated, closing, slow season | 5. Layoff | Business reason |
| New hire not working out in the first 90 days | 6. Probationary period | Optional |
| Planned end of a seasonal or temporary job | 7. End of season | End of assignment |
| California, New York or any state written notice | 8. Notice of separation | Type only |
| Planning the meeting and the final paycheck | 9. Checklist and final pay | n/a |
1. Simple termination letter
Best for any at-will separation where you do not need to state a reason
This is the template most employment lawyers would start you with. It states only what you control and can prove: the date, the pay and the benefits. In the example, Texas law requires final pay within six calendar days of a discharge, so the check is dated November 12. Have the conversation in person first, then hand over the letter; it should confirm the meeting, not replace it.
2. Termination letter for poor performance
Best for ending employment after documented warnings or an improvement plan
Use this letter only when the file backs it up. Every fact in the letter should match a record you already have: warning notices, an improvement plan, time clock data or sales reports. If you have not warned the employee, consider the simple letter instead, or start with an employee warning notice and give them a fair chance first. Keep the tone factual and short; the letter is not the place to relitigate every mistake.
3. Termination letter for misconduct or a policy violation
Best for immediate termination for theft, violence, harassment, safety or serious policy breaches
Describe what happened, not what you think of the person. “The video shows you removing cash” is a fact; “you are a thief” is a label that can create a defamation claim. Investigate before you decide, even briefly, and write down that you heard the employee’s side. In California, as in the example, a discharged employee is owed all wages, including accrued vacation, immediately, so cut the check before the meeting.
4. Job abandonment termination letter (no call, no show)
Best for employees who stop showing up and do not answer calls
Send this letter by mail and email to the addresses on file, since you cannot hand it over. List every shift missed and every attempt to reach the person; your scheduling and time clock records prove both. The “please contact us” line matters: an employee in the hospital or eligible for FMLA leave may not have been able to call, and treating that as a resignation can be unlawful. Our no call no show guide explains how many shifts most policies allow.
5. Layoff letter for a position elimination
Best for closings, reorganizations and cuts that are not about performance
A layoff letter should make clear the job is ending, not the person’s standing. If severance depends on signing a release and the employee is 40 or older, federal law gives them at least 21 days to consider it (45 days in a group layoff) and 7 days to revoke, which the example reflects. Larger layoffs can trigger the federal WARN Act or a state version, which generally requires 60 days’ notice for covered plant closings and mass layoffs at employers with 100 or more employees. In New York, the letter also gives the exact date benefits end, which the state requires in writing.
6. Termination letter during the probationary period
Best for new hires who are not working out in their first weeks
Call it an “introductory” period, and say employment stays at will after it ends; otherwise employees can read “probation” as a promise of job security once they pass it. Montana is different: under its Wrongful Discharge from Employment Act, good cause is needed for a discharge after the probationary period, so the period has real legal weight there. Keep the reason to one honest sentence or leave it out.
7. End of seasonal or temporary assignment letter
Best for holiday, summer and project staff at the planned end of the job
Send this letter a week or two before the season ends so people can plan. Pointing back to the offer letter (see the seasonal offer letter template) shows the end date was agreed from the start. An invitation to return keeps good people coming back, which saves you recruiting time next year.
8. Notice of separation form (California and New York ready)
Best for employers in states that require written notice, and anyone who wants a one-page record
California’s EDD says employers must immediately give written notice to employees who are fired, laid off or placed on leave, and provide the For Your Benefit pamphlet (DE 2320). New York requires written notice of the exact termination date and the exact date benefits end, within five working days. This form covers both, and works as a clean record in any state. Attach it to the termination letter, or use it alone when a letter feels like too much.
9. Termination checklist and final pay worksheet
Best for owners and managers preparing the meeting and the last paycheck
Employee termination checklist · Brandon Mitchell, Order Picker · Buckeye Supply Co., Columbus, OH · Last day worked November 6, 2026
| Step | Owner | Due | Done | Notes |
|---|---|---|---|---|
| Confirm reason, documents and prior warnings are in the file | Manager + HR | Before meeting | Y | Warning 9/28, PIP 10/1–10/30 |
| Check state final paycheck deadline and PTO payout rule | HR / payroll | Before meeting | Y | Pay on regular payday 11/13; policy pays vacation |
| Hold the termination meeting with a witness | Manager | Day of | Y | Erin Walsh present |
| Turn off building, system, email and app access | IT / owner | Day of | Y | Badge off 3:15 p.m. |
| Notify the health plan administrator (COBRA) | HR | Within 30 days | N | Send by 11/20 |
| Final pay item | Hours | Rate | Amount |
|---|---|---|---|
| Regular hours since last paycheck | 48.0 | $19.25 | $924.00 |
| Overtime hours (1.5x) | 3.5 | $28.875 | $101.06 |
| Accrued vacation paid out | 22.5 | $19.25 | $433.13 |
| Total gross final pay | $1,458.19 |
Most termination mistakes are logistics: a final check that arrives late, a laptop never returned, a former employee still on next week’s schedule. Work through the checklist before the meeting, then type hours and rates into the yellow cells of the Final pay sheet. The overtime line uses 1.5 times the base rate; if the employee earned bonuses or shift differentials, the regular rate may be higher, as our overtime guide explains.
What to include in an employee termination letter
Whichever termination letter template you start from, the finished letter should cover these points and nothing more. Short letters are easier to defend.
- Effective date. The exact last day of employment.
- Reason, only if you choose to give one. Facts that match the file, or no reason at all for an at-will separation.
- Final paycheck. What it includes (hours, overtime, tips, PTO if owed) and the exact date and method.
- Benefits. The date health coverage ends and that a COBRA or state continuation notice will follow, plus retirement and other plans.
- Company property. What to return, by when and how.
- State notices. For example, California’s DE 2320 pamphlet, or New York’s exact benefit end date.
- A contact. One name and phone number for pay and benefit questions.
- Acknowledgment of receipt. A signature line that confirms receipt, not agreement.
Leave out opinions, apologies that admit fault, comments about age, health, family or any protected trait, and anything you have not documented.
How to use these templates
- Check the file first. Make sure warnings, write-ups and time records support the decision. Our employee write-up forms help you build that file before you need it.
- Pick the template and fill in every bracket. Choose the simple letter unless you have a documented reason you want on record. The files open in Word and Google Docs.
- Prepare the final paycheck. Use the checklist’s Final pay sheet, and confirm your state deadline and whether accrued vacation must be paid out.
- Meet in private, with a witness. Keep it short: the decision, the date, the pay and benefits. Hand over the letter at the end.
- Close access and collect property the same day, and remove the person from future schedules.
- File the signed copy and send the COBRA notification to your plan administrator within 30 days.
Reread the termination letter template once more before the meeting and remove anything that sounds like an opinion. If the person is in a protected group, recently complained, recently took leave or has a contract, talk to an employment lawyer before you act. Payroll software or an HR platform for small business can hold the warnings, time records and pay history in one place, which makes this step faster.
US rules to know before you send a letter of termination
These are general principles, checked against federal and state agency sources. Rules differ by state and change often, so confirm with your state labor department or a lawyer.
- At-will employment, with exceptions. The Department of Labor says that a termination not based on discrimination, whistleblowing or a complaint under a law it enforces is subject only to any contract between employer and employee. Montana requires good cause after the probationary period. Discrimination and retaliation laws apply everywhere.
- Final paycheck timing varies by state. The DOL says federal law does not require immediate payment. California’s Labor Commissioner says a discharged employee is owed all wages, including accrued vacation, immediately, with waiting time penalties of up to 30 days of pay for willful delays. Texas requires final pay within six calendar days of a discharge.
- COBRA. Group health plans of employers with 20 or more employees must offer continuation coverage. The employer generally has 30 days to notify the plan of a termination, the plan has 14 days to send the election notice, and the employee gets at least 60 days to elect coverage, which can last up to 18 months. Many states have continuation laws for smaller employers.
- State written notices. California requires immediate written notice of a discharge, layoff or leave of absence and the DE 2320 pamphlet. New York requires written notice of the exact termination date and benefits end date within five working days.
- Severance releases for workers 40 and over. The EEOC says a waiver of age discrimination claims needs at least 21 days to consider (45 in a group termination) and 7 days to revoke after signing.
- Keep the records. The EEOC requires personnel records of an involuntarily terminated employee to be kept for one year from the termination date, and the FLSA requires payroll records for three years.
Frequently asked questions
Is an employer required to give a termination letter?
No federal law requires one, but some states require written notice. California requires immediate written notice of a discharge or layoff plus the EDD For Your Benefit pamphlet, and New York requires written notice of the exact termination date and benefits end date within five working days. A letter is good practice everywhere.
Do you have to give a reason in a termination letter?
In most states, no. At-will employment means you can end employment without stating a cause, so the simple template states only the end date and final pay details. If you do give a reason, it must be accurate and match your records, because an unemployment claim or lawsuit will compare the letter with the file.
When is a final paycheck due after termination?
It depends on the state. The Department of Labor says federal law does not require immediate payment. California requires all wages immediately when an employee is discharged, and Texas requires final pay within six calendar days of a discharge. Other states use the next regular payday. Check your state labor department before the meeting.
Should the employee sign a termination letter?
Ask them to sign that they received it, not that they agree. The templates include an acknowledgment line that says exactly that. If the employee refuses, write “Employee declined to sign” with the date and have a witness initial it. Give the employee a copy either way and keep one in the file.
What is the difference between a layoff letter and a termination letter?
A layoff letter ends employment because the job is going away, not because of anything the employee did, and usually says so. It often mentions notice pay, severance, recall rights and unemployment benefits. A termination letter for cause explains a performance or conduct reason. Both include final pay, benefits and property return details.
How long should I keep termination records?
The EEOC requires covered employers to keep personnel records for one year, and for an involuntarily terminated employee, one year from the termination date. FLSA payroll records must be kept for three years. Many employers keep the whole file longer because state rules and claim deadlines can run past those periods.