What Is a Client Termination Letter?

A client termination letter is documented written communication alerting a client that a company or individual wants to depart from the professional relationship and no longer conduct business together. The letter should indicate a separation date and the specific services that no longer need to be performed.

When writing a client termination letter, indicate issues regarding work in progress, such as how the work should be finalized or if payment is expected or in process. The letter should also indicate how the client's records may be processed, filed or forwarded. A process for requesting client records or previous work performed should be outlined.

Reasons for the separation, such as deadlines missed, unprofessional behavior, financial defaults or lack of quality work, may be noted in the client termination letter as well. To ensure the party is notified of the termination, the letter should be sent with delivery that guarantees a receipt or signature from the client.

A client termination letter is often a result of a poor business relationship that has proven problematic for the company or individual. A client termination letter also helps companies and individuals to avoid litigation risk associated with poor or questionable work from a client. The decision to separate from a client typically begins with an assessment of the values, goals and risk mitigation of the company or individual.