A termination letter is a formal document given by an employer to the employee when he/she is terminated from the services. It is used as a notice to formally inform the employee that it is the end of the employment period. A termination letter is also known as a letter of termination or notice of termination.
The letter includes the name, designation, name of the manager, and most important reason for termination. Employee termination occurs due to various reasons including bad employee performance, irresponsible behavior of employees at work, misconduct at the workplace, sudden loss in the company’s business. In case of any employee’s bad behavior or poor performance, companies take necessary actions before termination like warning in case of misconduct or arranging PIP (Performance Improvement Programs) in case of poor performance.