Free HR template
Termination Letter Template
A termination letter is a written notice from an employer confirming that an employee’s employment has ended and what happens next. It covers the effective date, final pay, paid time off, benefits, and company property. Catapult’s free Word template includes HR notes on final pay timing and whether to state a reason.
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- How-to and checklist
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What’s included
What’s in the Termination Letter template
The file opens with a guide for HR, then a one-page letter with highlighted fields and notes to delete before sending.
How to use this template
Steps for replacing the logo and highlighted fields, choosing between options, and removing the HR notes.
Before you send checklist
Confirm your state’s final pay deadline, PTO payout or forfeiture, the property list, and the separate benefits status letter.
Effective date
Termination effective immediately or as of a set date.
Final pay and PTO
Payout or forfeiture of accrued paid time off under your policy, and the final paycheck date.
HR note on reasons
A note that some states require a reason if the employee asks for one, while North and South Carolina do not, with Catapult’s recommendation.
Benefits status
Notice that a separate letter will cover continuation of group health coverage and other benefits.
Company property
Items already returned, or what must be returned, by when, and to whom.
Signature block
Your name, title, and organization.
Situations it covers
- Termination effective immediately or on a future date
- Accrued paid time off paid out or forfeited under your policy
- Company property already returned, or still to be returned
Checklist
What to include in a termination letter
- Employee name and date
- Decision and effective date
- Final paycheck date
- How accrued paid time off is handled
- Where benefits continuation information will come from
- Company property returned, or what is still due, by when, and to whom
- Name, title, and organization of the signer
When to use it
What the Termination Letter template helps with
Use it to confirm a termination decision in writing, usually at or right after the termination meeting.
It helps you
- Give the employee a clear written record of the effective date and next steps.
- Confirm final pay and PTO handling in line with your policy and state law.
- List company property to be returned.
- Point the employee to benefits continuation information.
Who should use it
HR managers, business owners, and supervisors handling an involuntary termination.
How to use it
How to use the Termination Letter template
- Confirm your state’s final pay deadline and your PTO policy.
- Add your letterhead and fill in the employee’s name, effective date, and final pay date.
- Choose the PTO and property options that apply and delete the rest.
- Prepare the separate benefits status letter.
- Delete the HR notes, sign, and give the letter to the employee.
Common mistakes
Mistakes to avoid
Missing the final pay deadline
Some states require final pay at termination or within days.
Holding pay for unreturned property
Final pay rules still apply while property is outstanding.
Over-explaining the reason
A long explanation can conflict with your records if the decision is challenged.
Leaving HR notes in the letter
Delete the guidance notes before the letter goes out.
Forgetting the benefits letter
The employee needs information on continuing group health coverage.
Compliance notes
What to check before you use it
Employment laws vary by state and change over time. These notes are general and point to the official sources.
Final pay timing varies by state
Federal law does not require an immediate final paycheck, but some states do. North Carolina requires final wages on or before the next regular payday. South Carolina requires payment within 48 hours or by the next regular payday, not to exceed 30 days.
Source: U.S. Department of Labor, Last paycheck; N.C. Gen. Stat. 95-25.7, Payment to separated employees; S.C. Code Title 41, Chapter 10, Payment of Wages (41-10-30, 41-10-50)
Paid time off
In North Carolina, earned PTO can be forfeited only if the employee was notified of the forfeiture policy as required by G.S. 95-25.12 and 95-25.13. Check your state and your written policy.
Source: N.C. Gen. Stat. 95-25.7, Payment to separated employees; N.C. Gen. Stat. 95-25.12, Vacation pay; N.C. Gen. Stat. 95-25.13, Notification, posting, and records
Company property
Final pay rules still apply while you wait for property to be returned.
Not legal advice. This page and the template are general information, not legal advice. For your situation, talk to an employment attorney or HR advisor. Catapult members can bring employment law questions to our advisors as part of their membership, and they can have an advisor review the completed letter before it goes out.
FAQ
Termination Letter template questions
What is a termination letter?
A termination letter is a written notice from an employer that confirms an employee’s employment has ended, the effective date, and next steps on final pay, benefits, and company property.
How do you write a termination letter?
State the decision and the effective date, explain when the final paycheck will arrive and how accrued PTO is handled, note that benefits information will follow, list company property to return, and sign it. Keep it short and factual.
Should a termination letter include the reason?
Some states have service letter laws that require employers to give a reason in writing if the employee asks for one. North and South Carolina do not, and Catapult’s HR advisors recommend not listing one where it is not required. Check the rules for the state where the employee works.
When is the final paycheck due?
It depends on the state. Federal law does not require immediate payment. North Carolina requires it on or before the next regular payday, and South Carolina within 48 hours or by the next regular payday, not to exceed 30 days. Some states require payment at the time of termination.
Does unused PTO have to be paid out?
It depends on state law and your written policy. In North Carolina, earned PTO can be forfeited only if the employee was notified of the policy. The template lets you choose payout or forfeiture.
What does a termination letter look like?
It is usually one page on company letterhead: the date and employee name, the decision and effective date, final pay and PTO details, a note on benefits continuation, a company property section, and the signer’s name and title.
A template gets you started. An advisor gets you an answer.
When a template does not cover your situation, Catapult members reach a certified HR advisor the same day by phone, chat, or email.