The termination letter itself is a legal document. You will need it if the employee files a lawsuit or grievance for a wrongful termination. Therefore, you must carefully consider the contents of the termination letter and how you write it. Remember that brevity is the best policy. Long-drawn-out explanations are awkward and a judge can use them against you if a legal proceeding occurs
The termination letter should include all information on final paychecks, a severance package, when health benefits will end or if the company includes a benefits package. If necessary, the termination letter may need to explain retirement accounts or life insurance policies or specify who can help with transferring these benefits.
Why termination letter must be well written:
- It can ease the pain of an employee who will have to make a difficult transition.
- The written word is easily preserved and can come back to haunt you.
- It will reflect well on your company as signs of courtesy and professionalism.
- It can help diminish hostility if it does not openly reproach the employee.
- It gives the employee the benefit of the doubt.
- Circumstances may change and you may decide to rehire the same employee.