Process for termination of team members

Consider developing a formal termination process for your company. A well-planned process helps ensure that the separation is respectful, efficient and safe. You may want to work with a lawyer to make sure your termination plan follows all relevant laws and regulations. They can also review your termination letter.

Your process may vary, but a standard termination of employment typically follows a few common steps:

1. Identify the reason. Clearly define why you’re terminating the employee. You may want to talk to a human resources (HR) representative to ensure that your reasoning for termination is acceptable under company policy. Gather supporting documents and evidence, such as performance reviews, written warnings and performance improvement plans.
2. Write a termination letter. Create a document that explains the termination to the employee. Provide details such as their last day of work, what to do with company property and where to turn in their keys. Consider asking your company’s HR team and legal department to review the letter before finalizing it.
3. Schedule a meeting with the employee. Meet in a private place, and tell the employee why you’re terminating them. Because it’s good to have an objective third party present, consider inviting an HR employee to join you. Plan the meeting during Monday or Tuesday, so the employee can start searching for a new job immediately, and try to avoid days with company-wide events or celebrations.
4. Provide compensation information. During the termination meeting, let the employee know when they’ll receive their last paycheck, and explain what will happen to their benefits. Give them the termination letter.
5. Escort the employee. For immediate terminations involving serious misconduct, you might arrange to have the employee escorted off the property directly after the meeting. This can support workplace safety and an orderly transition.
6. Inform other employees. After dismissing an employee, it’s a good idea to tell your staff about the person’s separation from the company, keeping private details confidential. Explain how the company plans to move forward, including your plan for fulfilling the former employee’s job responsibilities. Depending on the size of the organization, you might choose to inform only the employee’s department.
7. Organize employee documents. Keep copies of the terminated employee’s records and the letter of separation. Detailed documentation can help protect the company if the person believes they were wrongfully terminated.

What to include in a termination letter

The termination letter serves as an official record of the employee’s dismissal. It typically includes:

• Employee name, title and department
• Company page or name
• Manager name
• Date
• Termination date
• Reason for termination
• List of evidence or warnings supporting the employee’s dismissal (if necessary)
• Items the employee returns to the company
• Instructions for returning items
• Information about the employee’s last paycheck, vacation pay, severance packages and benefits
• Reminder of non-disclosure and non-compete agreements
• HR contact information

You might also ask the employee to notify the company if their address changes before the end of the year, so you can send tax documents to the correct address.

Sample letter of separation

Letters of separation are usually most effective when they’re concise, professional and accurate. The content and structure of the letter will depend on the reason for the termination.

Here are three sample letters of separation you can use as a guide:

Voluntary termination of business contract

Jan. 4, 2026

Dear Alberto Marino,

We are writing this letter to inform you that our service agreement will end as of January 10, 2026.

While we have enjoyed working with Champion Solutions these past three years, we’ve decided to end our contract due to departmental reorganizations.

Please complete all remaining assignments before our contract ends, and submit all invoices by January 9. As of January 10, you will no longer be able to access our server or networks.

Thank you for all your hard work. Please contact me via phone or email if you have questions.

Sincerely,

Kit Johnson

Editor-in-Chief

Involuntary termination due to layoffs

May 21, 2026

Dear Alberto Marino,

Over the past year, Copper Mill Software has adjusted its operational structure to better adapt to shifting market conditions. After a thorough assessment of our organizational needs, we have made the difficult decision to reduce our workforce. Regretfully, I am writing to inform you that your position as a sales executive is being eliminated, effective May 28, 2026.

Within the next couple of days, a human resources representative will schedule a meeting to discuss compensation, benefits and resources to help you find a new job.

Thank you for your hard work over the past five years.

Sincerely,

Belinda Piccio

CEO, Copper Mill Software

Involuntary termination for cause

April 15, 2026

Dear Alberto Marino,

This letter is to notify you that your employment with Northern Canal Medical Center will be terminated as of today, April 15, 2026.

On April 11, 2026, an internal IT investigation confirmed that your company account and phone were used to access a patient’s medical records from an external Wi-Fi network. This violates Northern Canal Medical Center’s Medical Records Policy, which you signed on January 10, 2021. As specified in the policy, violations are grounds for immediate termination.

As of today, April 15, 2026, you no longer have access to company systems and software.

Please return your employee ID, keys and company cell phone to the HR office before you leave the property. Your final paycheck will be sent to your home address on April 20, 2026, and your benefits will end on April 15, 2026.

Please contact the HR department with any questions you may have.

Sincerely,

Benjamin Sondergaard

Director, Northern Canal Medical Center