End of Employment Letter Templates for Employers

Overview

An end of employment letter is the written notice confirming the end of an employee’s employment and outlining next steps. It matters because the letter becomes a formal record that supports compliance, reduces disputes, and clarifies logistics like final pay, benefits, and returning company property.

As a rule of thumb, U.S. layoffs covered by the federal WARN Act require 60 days’ advance written notice for covered employers. Many benefits plans also trigger COBRA notices with a 60-day election window. See the U.S. Department of Labor’s WARN overview and EBSA’s COBRA guidance for details: WARN, COBRA.

This guide gives you clear definitions, scenario-specific templates, a concise checklist of what to include, and delivery and recordkeeping practices that stand up to scrutiny. It also flags critical compliance touchpoints with authoritative links so managers and HR generalists can act confidently under time pressure.

What is an end of employment letter?

An end of employment letter (also called an employee termination letter, dismissal letter, or termination of employment letter) is the employer’s official written notice that employment is ending and the effective date. It confirms the reason category at a high level, instructs on property return and systems access, and explains final pay and benefits steps.

It differs from a separation notice in two ways. The letter is your communication to the employee. A separation notice is often a jurisdiction-specific form you may need to provide to the employee and/or agencies (e.g., for unemployment claims). Some organizations also use “employment separation letter,” “separation notice,” or “employment cessation letter” as synonyms. The function is the same: clarity, documentation, and next steps.

When you should (and shouldn’t) use an end of employment letter

Use an end of employment letter whenever you end employment—whether at-will without cause, for performance or misconduct, due to layoffs or restructuring, or at the end of a fixed-term contract. The letter memorializes the decision, aligns stakeholders, and reduces ambiguity about logistics like final pay and benefits.

For layoffs that may implicate the WARN Act in the U.S., written notice is not just best practice; it’s mandatory for covered employers (DOL WARN).

You may not need a letter for truly voluntary resignations where the employee provides written notice. Many employers still send a brief acknowledgment to confirm last day, final pay timing, and property return. If the employee is covered by a union or individual employment contract, follow those procedures first. Collective bargaining agreements and contracts can require specific notice periods or steps.

Internationally, process matters. UK fair dismissal rules and ACAS guidance emphasize a fair reason and fair process. Many EU countries require consultation for collective redundancies.

What to include in an end of employment letter

An effective letter is specific, neutral, and action-oriented so the employee knows what happens next. Keep explanations concise, avoid argumentative language, and point to official contacts for pay and benefits details. Clear content prevents confusion and helps your documentation withstand audits or claims.

Include these essentials:

1. Employee name and role, decision date, and last working day/effective termination date
2. Reason category (e.g., at-will/no cause, performance, misconduct/policy, layoff/redundancy, end of fixed-term)
3. Final pay details (what will be paid and when) and any accrued leave treatment
4. Benefits status and COBRA/continuation basics, with plan administrator contact
5. Property return instructions and systems/access deprovisioning timing
6. Confidentiality and post-employment obligations (e.g., NDA, non-compete) by reference to signed agreements
7. Who to contact for questions and how to acknowledge receipt

After listing the essentials, draft in plain language and avoid overexplaining the “why.” Reference policies and prior documentation rather than relitigating events. Reserve detailed benefits calculations for payroll/benefits notices.

Templates for common scenarios

Below are copy-ready structures you can adapt. Keep tone calm and factual, insert dates and contacts, and align each letter to your policies and prior documentation.

At-will termination (no cause)

Subject: End of Employment

Dear [Employee Name],

This letter confirms that your employment with [Company] will end effective [Effective Date]. As an at-will employer, [Company] may end employment at any time, with or without cause or prior notice.

Your final paycheck will include all wages earned through [Effective Date] and any owed amounts consistent with our policies and applicable law. It will be provided on or before [Date/Method]. Information about your benefits, including any continuation options, will be sent separately by [Plan Administrator/HR Contact].

Please return all company property (e.g., laptop, badge, keys) by [Date/Process]. Your access to company systems will end on [Date/Time]. If you have questions, contact [HR Contact Name, Email, Phone]. Please confirm receipt of this letter by replying to this email or signing and returning a copy.

Sincerely, [Manager/HR Name] [Title]

Performance-based termination

Subject: End of Employment

Dear [Employee Name],

This letter confirms that your employment with [Company] will end effective [Effective Date] due to continued performance not meeting role expectations. This decision follows prior feedback and documentation, including [e.g., written warning dated MM/DD and Performance Improvement Plan dated MM/DD].

Your final paycheck will include wages through [Effective Date] and any accrued leave payable under our policy and applicable law. It will be issued on [Date/Method]. Benefits information, including any COBRA continuation, will be provided by [Plan Administrator/HR Contact].

Please return all company property by [Date/Process]. System access will end on [Date/Time]. Confidentiality obligations you agreed to on [Agreement Date] remain in effect. For questions, contact [HR Contact]. Please acknowledge receipt by [Method].

Sincerely, [Manager/HR Name] [Title]

Termination for misconduct or policy violation

Subject: End of Employment

Dear [Employee Name],

This letter confirms that your employment with [Company] ends effective [Effective Date] based on violations of company policy. Specifically, we reviewed incidents on [Dates] and determined violations of [Policy Names/Numbers] as documented on [Reference to prior notices or investigation summary date].

Your final paycheck, including all wages due through [Effective Date], will be provided on [Date/Method]. You will receive benefits continuation information, including any COBRA options, from [Plan Administrator/HR Contact].

Please return all company property immediately, including [List Key Items], by [Date/Process]. Access to company systems will be disabled on [Date/Time]. You remain bound by the confidentiality agreement signed on [Agreement Date]. Direct questions to [HR Contact]. Please confirm receipt of this letter by [Method].

Sincerely, [Manager/HR Name] [Title]

Layoffs, downsizing, or restructuring

Subject: End of Employment Due to Restructuring

Dear [Employee Name],

We regret to inform you that your position is being eliminated due to [business reasons such as restructuring, budget changes, or redundancy], and your employment with [Company] will end effective [Effective Date]. This decision is not a reflection of your performance.

You will receive your final paycheck on [Date/Method]. You will also receive details of any severance benefits under our plan. Information about health coverage continuation, including COBRA election rights, will be sent by [Plan Administrator/HR Contact]. If statutory or contractual notice applies, you will receive separate notices as required. This includes situations where the WARN Act or similar rules may apply.

Please return company property by [Date/Process]. System access will end on [Date/Time]. For transition support or questions, contact [HR Contact]. Please acknowledge receipt by [Method].

Sincerely, [Manager/HR Name] [Title]

End of fixed-term contract

Subject: End of Fixed-Term Contract

Dear [Employee Name],

This confirms that your fixed-term contract with [Company], dated [Contract Start Date], will end on [Contract End Date] as agreed. The contract will not be renewed.

Your final paycheck will include wages through [Contract End Date] and any amounts owed under the contract and applicable law. It will be issued on [Date/Method]. You will receive benefits information, including any continuation options, from [Plan Administrator/HR Contact]. Please complete handover of [Projects/Assets] by [Date], and return all company property by [Date/Process].

System access will end on [Date/Time]. If you have questions, contact [HR Contact]. Please confirm receipt of this letter by [Method].

Sincerely, [Manager/HR Name] [Title]

Legal and compliance essentials you can’t skip

Legal touchpoints often hinge on jurisdiction and company policy. Letters should state facts, reference applicable documents, and avoid commitments beyond what you can deliver.

In the U.S., final pay timing is set by state law. WARN may require 60 days’ notice for covered mass layoffs or plant closings. COBRA typically gives 60 days to elect continuation coverage (WARN, COBRA). Link your letter to the right follow-on notices so the employee receives accurate, timely information.

When in doubt, reference existing agreements (offer, handbook, NDA, non-compete) rather than creating new obligations in a termination letter. Keep internal documentation complete and consistent with what your letter states. The letter should be the clear, external-facing summary of a well-documented internal process.

Final paycheck timing and accrued leave

Final paycheck timing varies by state in the U.S. Some require payment on the last day. Others require payment by the next regular payday. Confirm state requirements before you set dates in the letter.

A practical approach is to say when and how final pay will be delivered and include who to contact with questions. If your jurisdiction requires payout of accrued, unused vacation or if your policy promises it, state that clearly. Sick time payout rules differ widely.

For current state contacts and resources, see the U.S. Department of Labor’s directory of state labor offices. Cite the pay date plainly in the letter and keep detailed payroll notes aligned to the ledger and any accrual payout.

Benefits continuation and COBRA basics

For U.S. employers sponsoring group health plans, COBRA generally allows eligible employees to continue coverage after qualifying events. There is a 60-day election window and up to 18 months of continuation in common scenarios (EBSA COBRA overview).

Your letter should note that separate COBRA information will arrive and identify the plan administrator or benefits contact. If you subsidize premiums as part of severance, keep that commitment separate and specific in a severance agreement, not the letter. Refer employees to the official EBSA/DOL COBRA page and ensure your plan administrator triggers notices promptly after the qualifying event.

WARN Act thresholds and notices

The federal WARN Act generally applies to employers with 100 or more full-time employees and requires 60 days’ advance written notice for covered plant closings or mass layoffs (DOL WARN). If you’re conducting a reduction in force that may meet those thresholds, coordinate WARN notices with your layoff letters and avoid making promises about future employment prospects.

For multi-site employers or staggered layoffs, align dates across letters and WARN communications to avoid gaps. Authoritative guidance is available from the U.S. Department of Labor’s WARN resources. Some states have “mini-WARN” laws with stricter rules—check local requirements.

Confidentiality, non-compete, and return-of-property language

Your letter should remind the employee that existing obligations continue, by referencing signed agreements and their dates. Keep language neutral: “You remain bound by your confidentiality and restrictive covenant agreements dated [Date].”

Avoid creating new restrictions in the termination letter itself. Put any new consideration-backed promises (e.g., extended non-solicit tied to severance) in a separate agreement. Be concrete about property return and access cutoff. State what must be returned, how, and by when, and name a contact for logistics.

Evidence and recordkeeping

Maintain underlying documentation that supports the letter. Examples include performance reviews, warnings/PIPs, incident logs, investigation notes, time records, and communications.

In the U.S., EEOC rules generally require employers to retain personnel/employment records for at least one year—and longer for certain files. Involuntary terminations should retain records for one year from the date of termination (EEOC recordkeeping). Payroll records often have longer retention periods. Keep your retention schedule current and access-limited.

Include an acknowledgment step (signature, reply email, or courier proof) and store delivery evidence with the letter. Consistent retention strengthens your position in unemployment responses or later disputes.

Delivery, documentation, and receipt

How you deliver a letter can shape how the separation is experienced and documented. In person is preferred when feasible, with a brief, respectful meeting, and a written letter handed over.

For remote or distributed teams, video plus same-day secure email is a reliable alternative, followed by receipt confirmation. Document who attended, the time, and what was provided.

After delivery, promptly trigger offboarding tasks—access removal, property logistics, payroll actions, and benefits notices—so the letter’s commitments are met.

In-person meeting and script tips

Keep the conversation short, clear, and respectful. Lead with the decision, not the backstory, then transition to logistics and support.

1. “Thank you for meeting. We’ve made the decision to end your employment effective [Date].”
2. “Here is your end of employment letter summarizing the decision and next steps.”
3. “Your final pay will be [Date/Method], and benefits information will come from [Contact].”
4. “Please return [Property] by [Date]. I’ll stay to answer process questions and connect you with [HR Contact].”

After the meeting, write a brief note to file with date, attendees, and key points. Save a copy of the signed acknowledgment if collected.

Remote delivery: video, phone, and email

For remote employees, schedule a private video call when possible. Send the letter immediately via secure email or e-sign platform.

Use delivery and read receipts where permitted, or follow with a confirmation request. If bandwidth or time zones prevent live video, a phone call followed by secure email and a same-day confirmation step works. Consider a courier with signature for critical roles or sensitive matters.

Ensure IT is ready to deprovision access at a set time after the conversation. Allow a brief, supervised window for personal file retrieval if policy permits.

Acknowledgment of receipt and what if they refuse to sign

Offer multiple acknowledgment methods: e-signature on the letter, a simple “I acknowledge receipt” email reply, or a signed copy collected in person. If the employee refuses, note “Employee declined to sign” on a copy in the presence of a witness, retain email or courier delivery proof, and file your meeting notes.

What matters is demonstrable delivery and reasonable opportunity to review. Save timestamps, delivery confirmations, and witness names with the letter in the personnel file.

Offboarding next steps after sending the letter

A crisp offboarding checklist prevents loose ends and reduces security and payroll errors. Sequence steps so pay and benefits communications go out on time and access is removed in sync with the last day.

For layoffs, coordinate timing with any WARN notices and severance agreements so dates match across documents.

Use this short checklist:

1. Collect company property and disable system access on schedule
2. Process final pay, expense reimbursements, and any accrual payouts
3. Send benefits continuation notices (e.g., COBRA) and explain severance administration
4. Update HRIS, payroll, and benefits systems; set up address/portal access for tax forms
5. Confirm reference/verification policy and central contact
6. Record acknowledgment of receipt and store all documentation per retention rules

Assign owners for each step—IT, Payroll, Benefits, HR—and close the loop in a shared tracker to ensure commitments in the letter are met.

Property, access, and systems

Time deprovisioning to balance respect and risk. For in-person exits, collect badges and laptops before access is disabled. For remote exits, arrange pre-paid shipping kits and a clear deadline, with access removal aligned to the return window.

If you permit personal file retrieval, provide a supervised method with documented limits and timing. Coordinate with managers to transfer files and delegate approvals before access ends. Save a system log of access removal for the personnel file.

Payroll, severance, and benefits notices

Ensure the final paycheck timeline matches the letter and state rules. Include unpaid overtime, commissions due, or approved reimbursements.

If offering severance, administer it through a separate agreement with eligibility, amounts, and any post-employment commitments spelled out. Benefits administrators should send COBRA or local continuation notices promptly after the qualifying event. Point the employee to the plan administrator in your letter so they know where to ask time-sensitive questions.

Reference requests and employment verification

Adopt a neutral-reference policy to reduce risk: confirm dates of employment and last position only, directing all requests to [HR Email/Service]. If you choose to offer a personalized reference, do it separately from the termination process and never contradict your records.

Include a verification contact line in the letter so third parties don’t contact managers directly.

International and jurisdiction-specific notes

U.S. employers operate largely under at-will principles, but statutory frameworks still apply. WARN covers certain layoffs, COBRA governs benefits continuation, and states set rules for final pay and unemployment responses (WARN, COBRA). For authoritative resources, see the U.S. Department of Labor pages for WARN and COBRA, and your state labor office directory.

In the UK, fair dismissal requires a fair reason and a fair process. ACAS guidance outlines steps for conduct, capability, redundancy, and other substantial reasons. In the EU, collective redundancy directives require information and consultation with worker representatives before dismissals. National transpositions vary, so check local rules (EU directive). For data retention and privacy across the UK/EU, align personnel file retention and access with data protection guidance from the UK’s Information Commissioner’s Office. Consider translations if the employee’s working language isn’t the letter’s language.

Common mistakes and phrasing to avoid

Termination letters can create risk when they speculate, overpromise, or contradict your policies. Keep language measured, avoid subjective judgments, and stick to verifiable facts and references.

1. Avoid: “We think you might improve elsewhere.” Say: “This decision is final and effective [Date].”
2. Avoid: “You violated the law.” Say: “We determined violations of [Policy Name] on [Dates].”
3. Avoid: “We guarantee future opportunities.” Say: “You may apply for future roles through our careers site.”
4. Avoid: “We will pay all accrued leave.” Say: “Accrued leave will be paid consistent with company policy and applicable law.”
5. Avoid: “We will keep your benefits active for now.” Say: “Benefits will end on [Date]; you will receive information about continuation options.”
6. Avoid: “Sign this now or else.” Say: “Please acknowledge receipt by [Method].”
7. Avoid: “We’ll provide a glowing reference.” Say: “Employment verification requests are handled by [HR Contact].”

Review each sentence for accuracy against your handbook, prior documentation, and actual processes. The letter should stand as a clean, consistent record.

FAQs

Is an end of employment letter legally required in my state or country? Often it’s best practice rather than a strict requirement. Certain contexts require written notice—e.g., U.S. WARN for covered layoffs and many international jurisdictions for dismissals or redundancies. Even when not mandated, a letter provides essential documentation and clarity.

What’s the difference between an end of employment letter, a separation notice, and a dismissal letter? The end of employment/dismissal/termination letter is your written notice to the employee. A separation notice can be a jurisdiction-specific form used for unemployment or agency reporting in addition to your letter.

How do I choose the right letter type for layoffs vs. performance vs. misconduct? Match the letter to the reason category. Use at-will/no cause for general separations. Use performance when you have documented coaching/PIP history. Use misconduct when you reference specific policy violations. For layoff/restructuring, reference role eliminations. Keep details proportionate and reference supporting documents rather than retelling events.

What should I do if the employee refuses to sign or acknowledge receipt? Note the refusal on a copy with a witness, keep proof of delivery (email read receipt, e-sign audit trail, or courier signature), and save meeting notes. Acknowledgment is helpful, but delivery proof is what counts.

Can I send an end of employment letter by email only, and how do I confirm receipt? Yes. If in-person delivery isn’t feasible, send via secure email or e-sign platform after a live conversation. Request a reply acknowledging receipt, enable read receipts where permitted, or use courier with signature.

What exact details about final pay and benefits should be in the letter, and what should be sent separately? State when and how final pay will be delivered and what categories it includes (e.g., regular wages, eligible accrued leave). Benefits specifics and COBRA notices typically come from the plan administrator. Your letter should point to that contact and expected timing.

How does letter wording affect unemployment claims and responses to agencies? Neutral, policy-based wording helps avoid unnecessary disputes and aligns with your responses to unemployment agencies. Avoid speculative or punitive language. Stick to the reason category and policy references so records are consistent with any agency submissions.

When does the WARN Act apply to my layoff letters and what must I include? Generally when employers with 100+ full-time employees conduct covered plant closings or mass layoffs. WARN requires 60 days’ written notice to employees and certain officials. Coordinate WARN notices with your layoff letters so dates and reason statements match.

How do I reference NDAs, non-competes, and confidentiality obligations in the letter without overpromising? Reference existing agreements by name and date and state that those obligations continue. Don’t add new restrictions in the termination letter. Use a separate, consideration-backed agreement if needed.

How long should I retain termination documentation and who should have access? In the U.S., keep personnel records at least one year, and longer where required by law or policy. Keep access limited to HR and legal on a need-to-know basis. Retention for payroll and benefits documents may be longer. Maintain a written retention schedule and follow it consistently.

What phrasing should I avoid to reduce discrimination or wrongful termination risk? Avoid subjective judgments, protected-class references, medical details, or legal conclusions. Use neutral statements tied to business reasons or policies. Avoid promises about future employment or benefits outside of formal agreements.

What adjustments are needed for international contexts (U.S. vs. UK ACAS vs. EU)? In the UK, follow ACAS guidance on fair reasons and process. In the EU, consult requirements for information/consultation and collective redundancies. Adjust notice periods, benefits references, and translation needs to local law and company policies.

References:

1. U.S. DOL WARN overview: https://www.dol.gov/agencies/eta/layoffs/warn
2. U.S. DOL EBSA COBRA: https://www.dol.gov/agencies/ebsa/laws-and-regulations/laws/cobra
3. U.S. DOL Unemployment Insurance: https://www.dol.gov/general/topic/unemployment-insurance
4. State labor office directory: https://www.dol.gov/agencies/whd/state/contacts
5. EEOC recordkeeping requirements: https://www.eeoc.gov/employers/recordkeeping-requirements
6. ACAS guidance on dismissals: https://www.acas.org.uk/dismissals
7. EU collective redundancies directive: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:31998L0059
8. UK ICO employment data guidance: https://ico.org.uk/for-organisations/uk-gdpr-guidance-and-resources/employment/