Draft an employee termination letter for [EMPLOYEE NAME AND ROLE] based only on [DECISION BASIS AND DOCUMENTED FACTS], [COMPANY POLICY AND AGREEMENT TERMS], [SEPARATION DETAILS], and [JURISDICTION AND REVIEWER]. The termination is effective [EFFECTIVE DATE]. Create a formal letter of 250-400 words with these elements in this order: 1. Date, employee name, and a clear statement that employment ends on the effective date. 2. A neutral, concise reason category appropriate to the documented decision, without unnecessary factual detail, diagnosis, accusation, or legal conclusion. 3. Final pay, benefits, expense reimbursement, equity, severance, notice, commission, and paid-time-off language only where the provided policy or agreement supports it. Identify items that require confirmation rather than guessing. 4. Return-of-property, confidentiality, systems-access, and ongoing-obligation instructions, limited to obligations actually in the employee’s agreements or policy. 5. A respectful contact point for administrative questions and a closing. Use dignified, direct language. Do not promise references, characterize performance, state that the decision is legally compliant, include protected-class information, or add non-disparagement, release, restrictive-covenant, or severance terms that are not supplied. Do not use the letter to replace the termination conversation or required notices. This is a drafting aid, not legal advice. Flag jurisdiction-specific requirements, policy conflicts, missing final-pay or benefits information, and any statement needing HR or employment-counsel review. Before answering, check that every entitlement and obligation is supported by my inputs and that no reason statement goes beyond the documented facts. Ask up to 3 clarifying questions only if a required input is missing.
Fill in
| Placeholder | What to enter | Example |
|---|---|---|
| [EMPLOYEE NAME AND ROLE] | Enter the employee’s name, job title, and department if appropriate. | Jordan Kim, Customer Support Specialist, Customer Operations. |
| [DECISION BASIS AND DOCUMENTED FACTS] | Provide the approved reason category and only verified facts that may be included. | Position elimination as part of an approved team restructuring; Jordan’s role is being removed, not replaced. |
| [COMPANY POLICY AND AGREEMENT TERMS] | Paste the relevant approved policy, contract, handbook, or separation-language excerpts. | Offer letter says employment is at will; handbook requires return of company property; approved separation plan provides two weeks of severance after a signed release. |
| [SEPARATION DETAILS] | Provide confirmed final-pay, benefits, property-return, access, and contact details. | Final wages through Sept. 30 paid on regular payroll date; health coverage ends Sept. 30 with COBRA information sent separately; laptop return by Oct. 7. |
| [JURISDICTION AND REVIEWER] | State the employee’s work location and the HR or legal reviewer who must approve the draft. | Employee works in Illinois; review by Priya Shah, HR director, and outside employment counsel. |
| [EFFECTIVE DATE] | Enter the confirmed last day of employment or effective termination date. | September 30, 2026. |
How to use
- Use an approved decision basis and paste only the policy language your HR team has authorized for this situation.
- Replace placeholders with confirmed details, especially the effective date, final pay, benefits, property return, and contact information.
- Have HR and employment counsel check jurisdiction-specific notices, release language, timing, and consistency with the termination meeting.
- Follow up with: “Create a separate HR checklist of items to confirm before this letter is issued; do not draft new legal terms.”
Variations
Position elimination
Use when a role is ending for business reasons rather than performance or misconduct.
Draft a respectful position-elimination notice for [EMPLOYEE NAME], effective [DATE]. Use the approved business explanation [APPROVED EXPLANATION] and confirmed administrative details [PAY AND BENEFITS DETAILS]. State that the role is eliminated without implying performance concerns or making promises about future hiring. Include property-return instructions from [POLICY TERMS] and an HR contact. Flag any required notices based on [WORK LOCATION]. Do not invent severance, placement assistance, references, or legal language. Check that the stated reason is consistent throughout and every benefit statement is supplied. Ask up to 3 questions only if inputs are missing.
Contract end notice
Use when a fixed-term employee or contractor engagement is ending under written terms.
Draft a notice that the [EMPLOYEE OR CONTRACTOR] engagement for [NAME] ends on [END DATE] under [AGREEMENT EXCERPT]. State the transition steps in [HANDOFF AND PROPERTY DETAILS], payment terms in [PAYMENT DETAILS], and the contact for questions. Keep it factual and avoid calling the person an employee, contractor, or at-will unless the agreement uses that classification. Do not add release, non-disparagement, confidentiality, or restrictive terms beyond the supplied agreement. Flag items requiring local legal review. Check that dates, payment terms, and obligations match the source text. Ask up to 3 questions only if inputs are missing.
Termination meeting script
Use when HR needs a brief, humane script for the live conversation, not a letter.
Write a short termination-meeting script for [MANAGER NAME] and HR to use with [EMPLOYEE NAME]. The approved decision statement is [APPROVED REASON], effective [DATE]. Include an opening, a direct notification, a handoff to HR for [LOGISTICS], and a calm response to likely questions without debating the decision. Keep it under five minutes and include no legal conclusions, unsupported performance claims, or promises about pay or benefits. Flag statements that require HR or counsel approval under [JURISDICTION]. Check that the script does not invite argument or contradict the written notice. Ask up to 3 questions only if inputs are missing.
Tips
- Use a reason category approved for the decision; a letter is not the place to reconstruct every incident or performance discussion.
- Final-pay timing, unused leave, benefits continuation, and required notices vary by location and policy, so verify them before the document is issued.
- Keep the written letter aligned with what will be said in the meeting; differing explanations create unnecessary risk and confusion.
- Separate mandatory obligations from optional support, such as severance or outplacement, and state optional support only after its terms are approved.
FAQ
Can AI write a legally compliant termination letter?
No. It can organize approved facts into a draft, but HR and employment counsel should confirm legal requirements, timing, and jurisdiction-specific language.
How much detail should the reason include?
Usually only the approved reason category and necessary context. Avoid labels, accusations, or facts that are not needed for the administrative notice.
Should severance terms go in the termination letter?
Include only approved high-level information and refer to a separate agreement when applicable. Do not let AI invent release or payment conditions.