A termination letter provides an employee information about the last day of work, final paychecks and benefits. Termination letters may be used in disputes over claims to benefits; therefore, causes of dismissal should be stated if they're provable, advises About.com.
Termination letters usually follow a termination meeting, and they provide a summary of that meeting, states Susan M. Heathfield, Human Resources Expert for About.com. In the case of an employee layoff, the letter should convey details about the layoff as well as benefits or severance packages the employee is entitled to. It should declare that poor performance is not the cause of termination. It should name any property the employee must return to the company. The letter should be reviewed by an employment lawyer to ensure that the layoff is legal and non-discriminatory.
In the case of dismissal for cause that is demonstrable, the termination letter should state the cause, says Heathfield. If an employee is dismissed for reasons that are hard to prove, Heathfield advises the employer to give no reason for termination, and to keep the letter simple and factual. The letter should simply review that a termination meeting was held, list the benefits owed the employee, and the property, such as electronics and key cards, due to the employer.