What is Termination Letter? | Meaning & Definition | Akrivia HCM

It is a formal notice of an employee’s termination of employment. It usually contains the pertinent details surrounding the employee’s termination and an official record that they have been terminated from their position. It is also referred to as a letter of dismissal, notice of termination, or termination notice. The term “pink slip” may refer to a termination letter delivered on the pink layer of a triplicate form. A properly worded letter of termination informs the employee of their rights and responsibilities after leaving the organization. The departing employee may then follow internal HR policies to protect the organization, ensuring a smooth transition. 

Situations when an employer can give the termination letter: 

1. An employee’s performance or behavior has fallen below expectations or violated the employer’s code of conduct. 
2. Employers sometimes dismiss employees because of more prominent market factors, such as a lack of revenue leading to downsizing. 
3. When an employer hires a short-term employee, the employer decides not to renew the employee’s employment contract beyond the initial term. 

Things to mention in the termination letter: 

1. The date of termination. 
2. he reason why the company considered terminating the employee. 
3. The list of properties was given to the employee from the company. 
4. Notification for signed documents. 
5. Contact details of HR for any questions related to the termination. 

Purposes of termination letter: 

1. Employers maintain records of termination decisions, giving employees insight into why they lost their jobs and the opportunity to reflect on their career progression. Maintaining positive relationships with departing employees also decreases the chance an employer will have negative reviews on review sites. 
2.  When a dismissal is challenged in court, having a termination letter with all the release details can help an employer prove that they gave the ex-employee appropriate notification.