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Writing a contract termination letter

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When the time comes to part ways with an employee, it can be a bit of a challenge to fire an employee in a tactful way. Never let your emotions interfere with the process as it can become a challenge to fire an employee if they have wronged you and the company in some way. Holding a grudge against this person will not do you any good so it's best to just let them go and avoid getting in a few jabs before they are gone.

A contract termination letter is the finalizing method you want to use to formally dismiss an employee. You may want to bring in another employee when you fire an employee in order to have evidence that you did as company policy states to do when you let someone go.

What does the contract termination letter need to say and do in order to serve it's purpose? It must mention the terms and conditions as to why the employee and the company have chosen to part ways. It needs to be clear and direct and can reference company policy in the letter. Just make sure it is written in a professional manner or you may end up with loopholes that the fired employee may try to fight you on legally.

Here are some of the things you need to include as you are writing a contract termination letter:

  1. Employee that you are terminating. You need to include their name and position title in the letter and address them by name. Using their name in the letter will eliminate any room for confusion when they read the letter or attempt to dispute the letter as it was intended for another person. In addition to addressing the soon to be former employee by name, you also want to include other information like the date the letter was written and also the time that you are handing it to the employee.

  2. Provide the reason for termination. Once you have addressed the employee, you want to address the reason why you are firing them. You can include detailed information, which may be necessary for an employee that has had multiple instances of late arrivals and other things. Just watch for any loopholes or things that are not completely accurate or confusing. Remember not to convey emotion when firing an employee and do the same with the contract termination letter. Remain professional with the letter and mention only the reasons why they are being terminated without mentioning your feelings of being upset with them.

  3. Remain professional in the letter. Remember to use professional language in the letter and avoid slang. You need to be polite and professional. You do not need to be rude and bold in the letter as the reasons you list for termination will be very clear and precise and you won't need to explain the reasons for terminating the employee multiple times.

  4. End the letter with the date and your signature. You may include the signature of another manager or HR personnel for your security. Once you have gone over the letter, you are ready to serve it to the employee.

During the meeting with the employee, you need to be aware of your emotions. Watch out for the way in which you handle the entire thing. Firing an employee is not a fun or easy process and it does take a lot out of you to do it. Keep the conversation short and to the point and serve the employee with the letter and let them know when they are expected to leave the company property. Some employees will need to be escorted with security while others will accept the termination and leave on their own.

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