When we use the word ‘layoff’, it means temporary or permanent service termination of an employee or employees. Laying off can happen for a number of reasons. In cases such as when you are required to fire workers because of economic conditions, this template termination letter proves to be convenient.
Employers are supposed to provide the worker/workers with a termination letter containing details of their layoff, their compensation & their last cheque from the company.
Further, the letter of termination will provide the company file & the unemployment benefit department with paperwork when workers apply for jobs. The Layoff Termination letter Sample, format and templates are available for use at the end of this article for free download.
Announcing a lay off is not supposed to take your business of the deep end, there are ways to keep it simple & effective. External factors such as a recession that affect your business cause this distressing situation & force your hand to save your company. Therefore, it is essential that you inform your employees of their termination ethically & professionally since they deserve it.
Below is an example to guide you on how to approach this successfully:
3.1 Check with the Law
Knowing how the law regards employment termination in your country is useful in this situation. Lawyers who will protect your rights as an employer must proofread your termination letters. Since sending out termination letters is a sensitive issue especially when it is many employees at once, it is important to double-check with an attorney avoiding the accusation of wrongful termination that can harm your business & create problems with unions.
3.2 Reassuring the Remaining Staff
It is normal for those who have not been terminated to feel insecure about their jobs since they could be next, & while that risk always stands, it is essential to assure them of their position while they are employed with your business.
For starters, provide a suitable outplacement program for the impacted employees, this will also guarantee support from current employees & build their confidence.
Keep the employees informed about the situation so they aren’t surprised with certain decisions & are prepared beforehand, this makes the whole process of termination more Co-operative.
Layoff Termination Letter Format and Sample
Here’s a sample you can use while laying off an employee: (Termination Letter formatted Word file available for download at the end of the article)
777 North Street,
Anywhere, SA 001
Fax: • 444-662-9981,
February 8th, 2021
Dallas, Texas 7581,
444 Main Rd,
Downtown County 8900.
Subject: Termination Letter
We regret to inform you that from this date onward i.e. 8th February 2021, your contract as a Mission Ace employee is terminated.
Due to the unforeseen economic recession, our business has been negatively affected. The decision to remove the marketing department was unanimously agreed upon in yesterday’s HR meeting. It was difficult since many of our dedicated employees including yourself work in that department but to avoid a crisis; we had to consider the company’s future. The functions of this department will be handed over to Sales since that is where Mission Ace needs to focus on in order to survive.
There is an outplacement program to compensate for this unexpected termination which will cover your health insurance for all the years you were employed, you will also receive a paycheck amounting of half a year’s salary & a temporary job at one of our sister companies.
Kindly receive your paycheck & documents for the temporary job from Mindy in HR. She will guide you accordingly & make sure you have everything you need to begin your career elsewhere. She will also recommend a career consultancy whose services we’d advise you to seek, so this process is easier for you.
We are in touch with your insurance company & you will be contacted by them to confirm your status regarding job & pay. Mindy in HR will let you know the details regarding your health insurance.
Mission Ace confirms that you have returned the company car that you had been given 6 years into your employment. It is in suitable condition & you will not be charged with any fine. Your car insurance with the company has also been terminated & you are no longer responsible to pay its dues in the future.
We would like to thank you for co-operating with us patiently. We understand this has been a trying time for our employees & we appreciate & commend your loyalty & dedication to our company. If you require any reference letters on behalf of your supervisors, kindly email us & we will help you in this matter. Mission Ace will always remember you for your service to our company & you will be missed by your colleagues. We wish you the best of luck for your future!
Note: The laws concerning the last paycheck might differ from country to country.
Disclaimer: It is important to keep in mind that the above-mentioned information isn’t confirmed to be a hundred percent correct as every country or state have laws of their own. However, it is reliable information. This content is created generally to be read by everyone around the globe. It is obvious that employment laws around the globe can be different from each other. It is necessary to confide in an attorney or your company lawyer to become aware of the laws of your state before you terminate an employee. This content is to provide you with general guidance, insights & support.