Employment Termination Letter

[company_name] [company_address] Date: [letter_date] STRICTLY PRIVATE AND CONFIDENTIAL To, [employee_name] Employee ID: [employee_id] [designation] [employee_address] Subject: Termination of employment Dear [employee_name], 1. You joined the services of [company_name] ("the Company") on [joining_date] and have been working in the position of [designation]. 2. REASON FOR TERMINATION [termination_reason] 3. BACKGROUND AND PROCESS FOLLOWED [background] 4. DECISION Having considered the matter, and after affording you an opportunity to be heard, the Company has decided to terminate your employment with effect from [last_working_day]. 5. NOTICE You are being given [notice_days] days' notice in accordance with the terms of your appointment. Where the Company elects to pay salary in lieu of notice, that payment will be included in your final settlement. 6. FINAL SETTLEMENT [final_dues] Your final settlement will additionally include, as applicable: (a) salary up to and including the last working day; (b) encashment of accrued and unused leave, as per Company policy; (c) gratuity, where you have completed the qualifying period of continuous service under the Payment of Gratuity Act, 1972; (d) any bonus payable under the Payment of Bonus Act, 1965; (e) reimbursement of approved expenses, less any amounts recoverable from you, including advances, loans and the value of unreturned Company property. The settlement will be processed and paid within the period prescribed by the applicable State legislation on payment of wages. 7. YOUR PROVIDENT FUND The balance in your provident fund account may be withdrawn or transferred through the Employees' Provident Fund Organisation. The Company will complete its part of the formalities on request. 8. RETURN OF COMPANY PROPERTY Please return, on or before your last working day, all Company property in your possession, including documents, records, data, devices, identity card, access cards and credentials. 9. CONTINUING OBLIGATIONS Your obligations of confidentiality and in respect of the Company's intellectual property survive the termination of your employment and continue to bind you. 10. DOCUMENTS A relieving letter and experience certificate will be issued after completion of the handover and settlement formalities, and Form 16 will be issued in the usual course. 11. Please acknowledge receipt of this letter by signing and returning the duplicate copy. For [company_name] Authorised Signatory Name: Designation: ACKNOWLEDGMENT Received a copy of the above letter on ______________. Employee's signature: ______________________ IMPORTANT NOTES FOR THE EMPLOYER BEFORE TERMINATING FOR MISCONDUCT, follow due process. A termination for misconduct without a show-cause notice, an opportunity to explain, and where warranted a domestic enquiry, is vulnerable to challenge on the ground of breach of natural justice — and the defect usually cannot be cured afterwards. WHERE THE EMPLOYEE IS A "WORKMAN" under the Industrial Disputes Act, 1947, termination may amount to RETRENCHMENT, which carries its own mandatory conditions under Section 25F: written notice stating reasons or wages in lieu, retrenchment compensation paid AT THE TIME of retrenchment, and notice to the appropriate Government. Whether a person is a workman turns on the nature of the duties performed, not on the designation given. Use the retrenchment notice template where those provisions apply. WHERE STANDING ORDERS APPLY to the establishment, the procedure prescribed in them must be followed. Keep the letter factual. Avoid characterising the employee's conduct beyond what the record supports, and never state a reason that cannot be substantiated — the letter will be the first document produced if the termination is challenged.