Termination Letter

Notice of involuntary termination — at-will, with-cause, or layoff.

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ACME CORPORATION

May 4, 2026

Jordan Taylor

Dear Jordan Taylor,

This letter is to confirm that your employment with Acme Corporation as Senior Software Engineer is terminated effective May 4, 2026.

REASON FOR TERMINATION
Despite performance feedback delivered in your most recent review and coaching since, the Company has not seen the improvement required to meet the role's expectations.

FINAL PAYCHECK
Your final paycheck, including all earned wages and accrued unused PTO, will be available on your last day of employment as required by California law. It will be deposited via your standard direct-deposit account.

BENEFITS AND COBRA
Your health insurance coverage will end on the last day of the month of termination. You will receive COBRA continuation paperwork from our benefits administrator within 14 days, allowing you to continue coverage at your own expense.

SEVERANCE
The Company is offering a severance package of 4 weeks of base pay, conditional on signing the enclosed Severance Agreement and Release of Claims. This is a voluntary offer; you have 21 days to consider it and 7 days after signing to revoke.

RETURN OF COMPANY PROPERTY
Please return the following items by your last day of employment:
- Company laptop, charger, and external monitor
- Company-issued mobile phone
- Office key card and parking pass
- Any other Company property in your possession

CONTINUING OBLIGATIONS
Your obligations under the Confidentiality and Invention Assignment Agreement, and any non-solicitation provisions, remain in full effect after termination as set forth in those agreements.

REFERENCES
Per Company policy, requests for references should be directed to HR. We will confirm your dates of employment and title.

We thank you for your contributions to Acme Corporation and wish you well in your future endeavours. If you have questions about this letter or the transition, please contact me directly.

Sincerely,


_______________________________
Sarah Kim
Chief People Officer
Acme Corporation


ACKNOWLEDGED:


_______________________________            Date: _______________
Jordan Taylor

(Acknowledgement confirms receipt of this letter, not agreement with its contents.)

About this template

A termination letter is the most legally-scrutinised document in HR. Every word is potentially evidence in a wrongful-termination, discrimination, or unemployment claim. Best practice: keep the letter factual and short, never speculate about intent, never list more reasons than you can actually document, and never include language that could be read as an admission of fault. The letter should be delivered in person where possible, with an HR representative or witness present. Most US states require final wages (including accrued unused PTO in many states) to be paid by the last day of employment or within a small number of days after — California, Massachusetts, and Colorado are particularly strict. Severance is voluntary in the US (no federal requirement) but should be offered when there is any litigation risk; the severance agreement requires the employee to release claims in exchange for pay.

When to use it

  • Involuntary termination for cause.
  • Layoffs (provide WARN notice if applicable for groups of 50+ in 30 days).
  • End of probationary period without conversion.
  • Mutual separation (often paired with severance agreement).

What to include

  • Effective termination date.
  • Brief, factual reason (or none, if at-will).
  • Final paycheck timing.
  • Benefits end date and COBRA notice.
  • Severance terms (if offered).
  • Items to return.
  • Continuing obligations (NDA, non-solicit).
  • Reference policy.
  • Acknowledgement of receipt.

Frequently asked

For at-will terminations with no documented performance issues, "the Company has decided to end the employment relationship effective [date]" is sufficient. Adding speculative reasons creates evidence the employee can attack. For documented performance issues, briefly state the documented basis. Never include reasons that touch on protected characteristics (age, race, disability, pregnancy, etc.) even tangentially.
⚠ Legal disclaimer. This template is provided for informational purposes only and is not a substitute for legal advice from a qualified attorney. Always consult a licensed professional before using this document for any binding agreement.

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