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Termination Letter

A termination letter is the employer's formal written communication ending an employee's services under the appointment terms. It states the basis for termination with reference to the relevant clause or policy, the effective date, notice or pay in lieu, final dues and exit instructions.

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[Company Logo][Company Name]

TERMINATION OF EMPLOYMENT

Ref. No.:: [Reference Number]
Date:: [Date]
Mode:: By hand / Email / Registered post

Strictly Private and Confidential

To,
[Employee Name]
[Designation], [Department]
Employee ID: [Employee ID]
[Employee Address]

Subject: Termination of Your Services

Dear [Employee Name],

This letter refers to our meetings and correspondence dated [Date] (Ref. No. [Reference Number]) regarding [brief factual description of the matter, for example the closure of a business unit]. After due consideration, the management has decided to terminate your services in accordance with Clause [Clause Number] of your appointment letter dated [Date] and [Policy Name / Standing Orders].

Your employment with [Company Name] will end with effect from the close of business on [Last Working Day]. In lieu of [Notice Period] notice, you will be paid salary of [Amount] as per your terms of employment.

Your full and final settlement, payable within [number] days, will include:

Salary for days worked up to [Last Working Day]
Salary in lieu of notice, as stated above
Encashment of [Number] days of earned leave as per policy
Statutory bonus, if eligible
Gratuity, if you have completed five years of continuous service
Less: recoveries of [advances / dues], if any, and applicable tax

Please return your laptop, ID card and all other company property and documents to [HR Name] by [Date]. Your obligations relating to confidential information under your appointment letter continue after your employment ends.

If you wish to make a representation regarding this decision, you may write to [Designation of Appeal Authority] at [Email] within [number] days of receiving this letter.

Your relieving letter and service certificate will be issued after completion of exit formalities. We thank you for your services.

Yours faithfully,

For [Company Name]
[Authorised Signatory]
[Designation]

Received by
[Employee Name]
Date: [Date]

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What this template includes

Reference to the appointment letter clause or policy relied on
Brief, factual basis for the decision and prior communication
Effective date of termination
Notice period served or salary in lieu of notice
Final dues including leave encashment and gratuity where eligible
Return of company property and continuing confidentiality
Contact for queries and any internal appeal route

When to use it

Employment is being ended under the notice clause of the appointment letter
A role is no longer required and termination with notice pay has been decided
Prior processes (warnings, inquiry or review) are complete and a decision has been taken
You need a general termination format that can be adapted to the specific reason

How to customise this template

1Use the specific letters for performance, misconduct or probation where they fit better
2Quote the exact clause number of the appointment letter or standing orders
3Confirm the notice pay and dues with payroll before issuing
4Have HR head and legal review before the meeting
5Hand the letter over in a private meeting with a witness from HR

HR tips

Never issue a termination letter without a documented decision process
Avoid emotional or defamatory language; state facts only
Plan IT access removal for the time of the meeting
Pay final dues within the policy and legal timeline

Termination is legally sensitive and requirements differ by category of worker, establishment and state. This template is only a starting point; review it against the appointment terms, standing orders, applicable labour laws including the Labour Codes and state rules, and with a legal adviser before issue.

For HR & hiring managers

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Frequently asked questions

Can an employer terminate an employee with notice pay in India?+

Many appointment letters allow termination by giving notice or salary in lieu of notice. Whether this is enough depends on the employee category, standing orders and applicable laws, so take legal advice.

Must a reason be given in a termination letter?+

It is good practice to state the basis briefly and factually, referring to the relevant clause or policy. For misconduct, a fair inquiry process should normally come first.

What dues are payable on termination?+

Typically salary up to the last day, notice pay where applicable, leave encashment as per policy, bonus if eligible and gratuity after five years' continuous service, less any lawful recoveries.

Should a termination letter be handed over in person?+

Wherever possible, yes, in a private meeting. Also send a copy by email or registered post for record.

All 50 resignation, exit & full-and-final settlement →

[Company Logo][Company Name]
TERMINATION OF EMPLOYMENT – PERFORMANCE
Ref. No.:
[Reference Number]
Date:
[Date]
Strictly Private and Confidential

To,
[Employee Name]
[Designation], [Department]
Employee ID: [Employee ID]
Subject: Termination of Employment on Grounds of Performance
Dear [Employee Name],
As you are aware, your performance has been discussed with you on several occasions. In the review dated [Date], specific gaps were shared with you in writing. A Performance Improvement Plan (PIP) was then agreed with you for the period [DD/MM/YYYY] to [DD/MM/YYYY], with the following goals:
PIP Goal Target Actual Result Status
[Goal 1] [Target] [Actual] [Met / Not met]
[Goal 2] [Target] [Actual] [Met / Not met]
[Goal 3] [Target] [Actual] [Met / Not met]
Letter · Word
Termination for Performance Letter
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[Company Logo][Company Name]
ORDER OF TERMINATION – MISCONDUCT
Ref. No.:
[Reference Number]
Date:
[Date]
Strictly Private and Confidential

To,
[Employee Name]
[Designation], [Department]
Employee ID: [Employee ID]
[Employee Address]
Subject: Order on Disciplinary Proceedings – Charge Sheet No. [Reference Number]
Dear [Employee Name],
A charge sheet dated [Date] was issued to you alleging the following misconduct under Clause [Clause Number] of the [Certified Standing Orders / Code of Conduct]:
1. [Charge 1 as stated in the charge sheet]
2. [Charge 2 as stated in the charge sheet]
Letter · Word
Termination for Misconduct Letter
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[Company Logo][Company Name]
TERMINATION OF EMPLOYMENT DURING PROBATION
Ref. No.:
[Reference Number]
Date:
[Date]
Private and Confidential

To,
[Employee Name]
[Designation], [Department]
Employee ID: [Employee ID]
Subject: Non-Confirmation and Termination During Probation
Dear [Employee Name],
You joined [Company Name] on [Date of Joining] as [Designation] on probation for a period of [Probation Period], as stated in Clause [Clause Number] of your appointment letter.
During your probation, your progress was reviewed with you by [Reporting Manager] on [Date] and [Date]. In these reviews, the expectations of the role, particularly [key expectation 1] and [key expectation 2], were discussed, along with the support available to you. (If applicable: Your probation was extended on [Date] to allow further time.)
Letter · Word
Termination During Probation Letter
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[Company Logo][Company Name]
RESIGNATION LETTER
Date:
[Date]
Employee ID:
[Employee ID]
To,
[Reporting Manager]
[Designation of Manager]
[Company Name]
[Company Address]

Cc: [HR Name], Human Resources
Subject: Resignation from the post of [Designation]
Dear [Reporting Manager],
Please accept this letter as formal notice of my resignation from the position of [Designation] in the [Department] department of [Company Name]. I joined the organisation on [Date of Joining], and after careful thought I have decided to move on to pursue [a new professional opportunity / higher studies / personal reasons].
As per the terms of my appointment, I will serve a notice period of [Notice Period], and my last working day will be [Last Working Day]. If the company agrees to an earlier release, I am open to discussing it, subject to completing my handover.
Letter · Word
Resignation Letter Format
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[Company Logo][Company Name]
RESIGNATION ACCEPTANCE LETTER
Ref. No.:
[Reference Number]
Date:
[Date]
To,
[Employee Name]
[Designation], [Department]
Employee ID: [Employee ID]
[Work Location]
Subject: Acceptance of Your Resignation
Dear [Employee Name],
We acknowledge receipt of your resignation letter dated [Date of Resignation]. After discussion with your reporting manager, the management has accepted your resignation from the position of [Designation]. Your last working day with [Company Name] will be [Last Working Day].
Before your last working day, please complete the following:
Letter · Word
Resignation Acceptance Letter
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[Company Logo][Company Name]
ACKNOWLEDGEMENT OF RESIGNATION
Ref. No.:
[Reference Number]
Date:
[Date]
To,
[Employee Name]
[Designation], [Department]
Employee ID: [Employee ID]
Subject: Acknowledgement of Resignation Received on [Date of Resignation]
Dear [Employee Name],
This is to acknowledge that the Human Resources department received your resignation from the position of [Designation] on [Date of Resignation] through [email / letter / HRMS]. Your resignation has been recorded in your personnel file with this date.
As per your appointment terms, your notice period is [Notice Period]. Based on the date of receipt, your tentative last working day would be [Last Working Day]. Please treat this date as provisional until you receive the formal acceptance letter, which will confirm the final date and exit formalities.
Letter · Word
Resignation Acknowledgement Letter
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[Company Logo][Company Name]
RESPONSE TO RESIGNATION
Ref. No.:
[Reference Number]
Date:
[Date]
To,
[Employee Name]
[Designation], [Department]
Employee ID: [Employee ID]
Subject: Your Resignation Dated [Date of Resignation] – Unable to Accept as Submitted
Dear [Employee Name],
We have received your resignation dated [Date of Resignation] requesting relieving on [Requested Date]. After review, we regret that the company is unable to accept the resignation on the terms submitted, for the following reason:
- Option 1 – Notice period: Clause [Clause Number] of your appointment letter requires [Notice Period] notice or payment in lieu. Your request does not meet this requirement.
- Option 2 – Pending inquiry: A domestic inquiry under charge sheet Ref. No. [Reference Number] is in progress, and as per [Standing Orders / Policy Name] the matter must be concluded before separation is processed.
- Option 3 – Service agreement: Your [training / service] agreement dated [Date] sets out the exit process in Clause [Clause Number], which has not yet been followed.
Letter · Word
Resignation Rejection Letter
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[Company Logo][Company Name]
NOTICE PERIOD – TERMS AND EXPECTATIONS
Ref. No.:
[Reference Number]
Date:
[Date]
To,
[Employee Name]
[Designation], [Department]
Employee ID: [Employee ID]
Subject: Your Notice Period and Related Guidelines
Dear [Employee Name],
Further to your resignation dated [Date of Resignation], this letter sets out the arrangements that will apply during your notice period.
Item Details
Notice start date [Date]
Notice period as per appointment letter [Notice Period]
Last working day [Last Working Day]
Handover to [Successor Name]
HR coordinator [HR Name]
Letter · Word
Notice Period Letter
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