Skip to content

MadyHR.ai Free Resources · USA

Free Termination Letter Template

A termination letter confirms the end date and practical next steps in calm, neutral language. It is not the place for a long list of reasons — keep it short and factual, and make sure your decision is documented separately.

Download free (Word .docx) Free · No sign-up · Opens in Microsoft Word and Google Docs · Last reviewed October 2026

Important: please read

This template is a free starting point, not legal advice. MadyHR.ai is not a law firm and cannot give legal advice. Employment law is different in every state, and some cities have their own rules. Laws also change. Before you use this template, check it against the laws where your employees work, and speak to an employment attorney or your state labor department if you are unsure. You use this template at your own risk, and MadyHR.ai accepts no responsibility for how it is used. Links to official government websites are given for information only; MadyHR.ai is not affiliated with or endorsed by any government agency.

When to use this template

  • Ending employment for performance or conduct
  • Position eliminated (one employee)
  • Confirming a termination meeting in writing

Tips before you use it

  • Check your state's final paycheck deadline — some states require payment on the last day.
  • Some states require you to give terminated employees a written notice about unemployment insurance or a separation notice.
  • This letter is for one employee. Large layoffs or closures can trigger the federal WARN Act and state "mini-WARN" laws.
  • Before terminating anyone who has recently complained, been injured, taken leave or asked for an accommodation, get legal advice.
Rules in your state may differ. Federal law sets the minimum. Your state — and sometimes your city or county — may add extra rules on this topic. Check with your state labor department before you use this template. Find your state labor office (U.S. Department of Labor)

Template preview

Replace everything in [brackets] and delete the notes for employers before you use it. The Word download contains the full template.

[Company Name]

[Date]

Dear [Employee Name],

This letter confirms that your employment with [Company Name] as [Job Title] ends effective [Last Day of Employment].

[Optional, one neutral sentence if you choose to give a reason, for example: "This decision follows the performance concerns discussed with you on (date)." Delete if not used.]

Final pay

Your final paycheck, including all wages earned through your last day [and accrued, unused PTO where required by our policy or state law], will be paid on or before [Final Pay Date], in line with [State] law.

Benefits

Your [health / other] benefits end on [Benefits End Date]. If you are enrolled in our group health plan, you will receive separate information about any right to continue coverage (for example under COBRA or a state continuation law).

Company property

Please return all company property, including [List of Equipment], by [Return Date].

Unemployment

You may be eligible for unemployment benefits. [Attach any state-required unemployment notice or separation notice.]

Questions

If you have questions about your final pay or benefits, contact [HR Contact Name] at [HR Contact Email].

Sincerely,

[Manager Name], [Manager Title], [Company Name]
Signature
Date

Frequently asked questions

Do I have to give a reason in a termination letter?

In most states no reason is legally required for at-will employees. A few states require a written reason or service letter on request. Whatever you say must be accurate and match your records.

Do I have to tell a terminated employee about unemployment benefits?

Some states require employers to give a written notice about unemployment insurance when employment ends. Check your state's unemployment agency.

Official sources

Each source below is an official U.S. government website. Check them for the latest rules.

Related leaving the company templates

See all Leaving the Company templates · See all 41 free US HR templates

More free resources for US employers

We always use a few necessary cookies to sign you in and keep that sign-in safe — those cannot be turned off. We would also like to set marketing cookies (the Meta Pixel and the Reddit Pixel) to measure our advertising. Those are entirely your choice, and everything on this site works exactly the same either way. What each category does.