Termination Letters: What Employers Must Tell You and What to Do Next

A termination letter confirms that employment is ending and the date. It is not always required, but it often accompanies final pay information, benefits notices and return-of-property instructions.

What it usually includes

• The end date and, sometimes, the reason.
• Final paycheck timing and any unused vacation payout.
• Benefits end dates and COBRA information.
• Return of company property and access.
• Reminders about confidentiality or non-compete terms.

After you receive it

1. Keep the letter and all related emails.
2. Ask when and how you will be paid; some states require quick final pay.
3. Check severance terms before signing anything.
4. File for unemployment promptly.
5. Review your options for health coverage.

When to ask a lawyer

• The reason sounds discriminatory or retaliatory.
• You were promised a contract term, such as a notice period.
• A severance agreement asks you to release claims.
• You were not paid wages owed.

For employers

State the facts plainly, keep the reason accurate and consistent with other records, and follow final pay and notice rules. See our guides on wrongful termination and final paychecks.

Legal notices that may come with a termination

• Final paycheck deadlines, which vary by state and may be immediate in some states.
• Payout of accrued vacation, where required.
• COBRA or state continuation notices for health coverage.
• Unemployment insurance information, which some states require employers to provide.
• Notices for mass layoffs under the WARN Act for larger employers.
• Notices about final benefits, retirement plan options and tax forms.

What employees should do right away

1. Request a written copy of any termination notice.
2. Ask about final pay timing and method.
3. Save copies of your offer letter, contract, handbook, performance reviews and pay records.
4. File for unemployment as soon as possible.
5. Review any severance agreement before signing, and ask for time.
6. Return property and get a receipt.

Protecting your rights

Termination can be unlawful if it is discriminatory, retaliatory or in violation of a contract or public policy. Keep a timeline of events, including complaints, leave requests and changes in treatment. Agencies such as the EEOC and state fair employment agencies have short deadlines, so act promptly if you suspect discrimination. See our guides to retaliation at work and wrongful termination.

Employer best practices

• Make decisions based on documented, consistent reasons.
• Deliver the news in a private, respectful meeting.
• Provide required notices and final pay on time.
• Collect property and disable access carefully.
• Keep personnel records and avoid public statements.

References and after-termination issues

Many employers confirm only dates and title. Employees can ask what will be said. Unemployment hearings, severance negotiations and non-compete obligations may follow, so keep your documents organized. See our guide to severance agreements.

Terms to know

• Termination: ending employment.
• Layoff: termination due to business reasons.
• Severance: pay given on termination.
• Final pay: wages owed at separation.
• COBRA: continuation of group health coverage.
• Release: giving up legal claims.

Scenario

An employee is laid off and receives a letter listing the last day, final pay timing, a severance offer and COBRA information. She asks for 21 days to review the severance release, files for unemployment and asks a lawyer about the release terms. She leaves with documents and no confusion about her final pay.

Frequently asked questions