Employees act as a backbone not only for small-scale businesses but also for large corporations alike. Usually, most employers spend lots of their time and resources to hire the best-qualified employees to help them manage their businesses. But even after the sacrifices, some employers sometimes are faced with decisions to terminate their employees.
Normally, employers do fire their employees due to varied reasons, some of which vary by the company’s expectations. Unfortunately, there are those employers who don’t need a cause to send an employee packing. In this article, however, we will dwell on job termination letters with a cause.
What Do We Mean By Job Termination Letter With Cause?
Well, in simple language, the job termination letters are formal documents written by managers to their employees, notifying them of their job termination with a reason or cause. On many occasions, these reasons are often associated with underperformance or failure to adhere to the company’s bottom line. However, simple termination letters may seem; they do carry a lot of weight and significance. For this reason, the managers are always advised to seek a legal opinion before making their final decision to let go of the employee.
Common Causes For Job Termination
Depending on a company’s policies and regulations, the management can decide to fire an employee due to varied causes. The following are just but a list of them:
- Damaging the company’s property
- Substance and drug abuse during work time or the workplace.
- Forging the company’s documents
- Frequent insubordination at work
- Misconduct at the workplace
- Poor or underperformance
- Use of company name or property for personal gains
- Any kind of theft or stealing at the workplace.
- Taking much time off than expected by the employer
Components of a Job Termination Letter
Following are the main components of the job termination letter:
Addresses: The first thing you need to think of when writing a job termination letter is the recipient and the sender’s address. This will help in making sure the termination letter falls into the rightful hands.
Mention The Cause For Job Termination: One thing an employee may want to know upon receiving termination letters is the reason for their sudden dismissal. Therefore, you need to clearly explain to the employee the cause for their employment termination. Avoid using words that could cause confusion, misunderstanding, or misinterpretation. If possible, you can include evidence of the same.
Mention Their Compensations And Benefits: The other crucial component of a Job termination letter with a cause is the compensations. An employee may want to know what compensation or benefits they will carry home now that they will no longer be part of the company. These may include the severance payment, unused leaves, and salary owed. Again, touch on their insurances and retirement benefits.
Property That Needs To Be Returned: If there is any company property that is under the employee, make sure that you mention it. Describe the timelines in which you expect the items back and in what manner. These can either be the company’s laptop, lock keys, and entrance ids, among others.
Remind Them Of Any Signed Agreements: Since the employer will be leaving your company, be sure to remind them of any other prior signed document. For instance, if the employee signed a nondisclosure agreement upon hiring, make sure you remind them to abide by it. They should whatsoever disclose the company’s secret information to any other party.
Add The Employer’s Contact And Address Details: Before you finally conclude your termination letter, you need to add the manager’s contact details so that the employee can channel their questions or concerns.
Job Termination Letter Sample
Mr. Robert Clegg
22211 Down Street
Florida, FL 22112
Dear Mr. Robert,
Please receive this letter as a formal termination of your employment with us, ABC Company Limited, effective from 1st October 2020. Note that after holding a decisive meeting, the committee, together with the management, resolved to take this action because of your continued abuse of office as the company’s accountant. The events that caused your job termination are detailed below.
On 2nd August, you illegally allowed unauthorized persons within the company’s premises. This is contrary to the company’s legal framework. Since your job position as an accountant is associated with the company’s finances, which are confidential, we saw it as a breach of our terms and conditions.
Additionally, on the same day, you send financial documents to an unknown person using its computers and email. After a thorough review of this matter, we came to understand that you willingly exposed our secret documents to our competitor’s email. This, again, was a direct violation of our company policy, which states that no confidential information should be sent to unauthorized persons whatsoever.
We are aware that you fully understand the company’s policies, as they are clearly stated in the employee’s handbook as well as confidential agreement. That said, be advised that the company is willing to pursue criminal charges for gross violations. Alongside this letter, we have also attached a package containing health insurance and other company benefits. Also, make sure you return the company’s properties in your custody five days upon receiving this letter. Please feel free to contact human resources at [inset contacts] if you have any other concerns.
ABC Company Limited
[Date of writing]
This letter confirms our today’s discussion regarding your status of employment. Please be notified that your employment with [Company name] is terminated effective immediately due to [mention the cause].
We decisively reached this decision after completing all the appropriate steps of the disciplinary process. Also, be notified that this decision was necessary because of your consistent underperformance. In relation to your skills and qualifications, we noted that you have been underperforming in your management duties despite issuing you with warning letters.
Keep in mind that all our governing rules are important. Also, as a company, we set objectives that are mandatory for every employee to meet. Therefore, your continued failure to meet our expectations is a risk to our business and fellow workmates.
Upon termination, we will be forced to cancel all benefits associated with your position. Please return any company property within the next ten days upon receiving this letter. Also, remember that our confidential agreement bounds you. This means that any information you’ve learned as our employee will remain private and confidential, a failure to which you risk facing legal charges.
If you have any other concerns or questions, don’t hesitate to call us at [insert contact details]. We wish you the best in the future.
Here are free editable termination letter templates that can be customized as per needs:
Writing a job termination letter can be daunting and it is certainly not an easy task, however with a simple termination letter template that provides a just reason for firing the employee and detailing what benefits and pay they have available, the letter should provide no misunderstanding and a quicker process for both parties.