Employee Contract Termination Letter Email Template

Use this employee contract termination letter sample email template to communicate terminations professionally, clearly outline details, and ensure compliance.
By
WeCP Team

An employee contract termination letter is used to formally inform an employee that their employment contract is being terminated. The email should be professional, clear, and respectful while maintaining the appropriate tone. The letter should include the reason for termination, details of any final procedures, and information about the employee's rights and responsibilities moving forward.

What to Include in an Employee Contract Termination Email

  • Subject Line: Make the subject clear and direct (e.g., "Termination of Employment Contract – [Employee's Name]").
  • Opening: Clearly state that the employee's contract is being terminated.
  • Reason for Termination: If appropriate and necessary, mention the reason for the termination.
  • Final Details: Provide details on final payments, benefits, or any items to be returned.
  • Next Steps: Outline any steps the employee needs to take before their departure.
  • Closing: End on a respectful and professional note, offering any support if needed.

Top 3 Employee Contract Termination Email Templates

1. General Employee Contract Termination

Subject: Termination of Employment Contract – [Employee's Name]

Dear [Employee's Name],

We regret to inform you that your employment with [Company Name] will be terminated, effective [Date]. After careful consideration, we have made this decision based on [reason for termination, if applicable, e.g., performance issues, business restructuring, etc.].

As of the termination date, your final paycheck will include all earned salary and any accrued vacation days. Please ensure that all company property (e.g., keys, documents, equipment) is returned by your last day of employment.

If you have any questions regarding your benefits, final paycheck, or other exit procedures, please don’t hesitate to reach out to [HR Representative's Name] at [HR contact details].

We sincerely thank you for your contributions during your time here and wish you the best in your future endeavors.

Sincerely,
[Your Name]
[Your Position]
[Company Name]

2. Contract Termination Due to Policy Violations

Subject: Termination of Employment Contract – [Employee's Name]

Dear [Employee's Name],

After a thorough review, we regret to inform you that your employment with [Company Name] is being terminated, effective [Date], due to violations of company policies. We have discussed these matters with you on [date(s) of previous discussion or warning], and despite our efforts to resolve the issues, we are unable to continue your employment with the company.

Your final paycheck will include all unpaid wages and any accrued benefits. Please ensure the return of any company property, such as equipment, keys, or documents, by your last day of work.

For any questions regarding your final pay or benefits, please contact [HR Representative's Name] at [HR contact details].

We thank you for your contributions and wish you success in your future career.

Sincerely,
[Your Name]
[Your Position]
[Company Name]

3. Contract Termination Due to Business Reasons

Subject: Termination of Employment Contract – [Employee's Name]

Dear [Employee's Name],

It is with regret that we inform you of the termination of your employment with [Company Name], effective [Date]. Due to unforeseen changes in the business, including [reason for termination, e.g., restructuring, budget cuts], we find ourselves in a position where we can no longer continue your contract.

Please note that you will receive your final paycheck on [date], which will include any outstanding wages and accrued vacation days. All company property should be returned before your departure.

If you have any questions or need clarification regarding this decision or the next steps, please do not hesitate to contact [HR Representative's Name] at [HR contact details].

We appreciate the work you have done with us and wish you the very best in your future endeavors.

Best regards,
[Your Name]
[Your Position]
[Company Name]

Employee Contract Termination Email Checklist

✅ Provide clear subject line and message stating the contract termination
✅ Include the reason for termination (if appropriate)
✅ Mention the effective date of termination
✅ Outline details of the final paycheck, benefits, and return of company property
✅ Offer assistance and contact details for HR questions
✅ Close respectfully, wishing the employee well

This template will ensure your employee contract termination email is clear, professional, and in compliance with the necessary protocols.

WeCP Team
Team @WeCP
WeCP is a leading talent assessment platform that helps companies streamline their recruitment and L&D process by evaluating candidates' skills through tailored assessments