A Letter of Termination is a formal written document from an employer to an employee notifying them that their employment is ending, including the effective date, reason, and final pay details.
A termination letter formally documents the end of employment — communicating the termination date, the reason for termination if stated, information about final pay, benefits continuation, COBRA rights, company property return requirements, and any post-employment obligations such as non-disclosure or non-compete provisions. Whether to state the reason for termination in the letter is a legally significant decision: in at-will employment, an employer can terminate without stated cause, and stating a reason creates a documented rationale that must be consistently applied and defensible. In locations with just-cause employment protections, the stated reason must meet the legal standard for justified termination — making the reason statement the most legally consequential element of the termination letter.
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