Sample Termination Agreement Letter

Posted in Agreement Letters

A termination agreement letter is a letter used to end a former contract. It can refer to contracted services with a vendor, but it usually refers to the ending of an arrangement with an employee. This letter is a notice to an employee when he or she is being let go. It is often issued as a notice of termination given within the amount of time standardized by the company’s employment rules, such as providing two weeks’ notice.

Format and Content

This is a professional notice and the kind that should hold up in a legal discussion. It is not a contract, so it does not require a signature, but it is an official notification to the employee regarding an important matter. The content of the letter must include a statement of termination including the date it will take place. It should also include any rights the employee has and any extra details related to turning in company items or removing personal things from a desk that should be taken care of. A reason for termination can be given at the employer’s discretion. The termination agreement letter format should be very formal.


This letter is from the corporate headquarters of a financial planning company to one of their paralegals. The paralegal is being terminated as part of a downsizing so she is being issued a standard two weeks’ notice. Her letter includes how to hand over sensitive information on clients and repeats her non-compete clause. This termination agreement letter sample explains all of this in a formal yet simple manner.

August 12, 2013

Scott Mayer
HR Department
American Financial
New York, NY

Sheila Prince
Paralegal, Administrative
American Financial
Dallas, TX

Dear Miss Prince:

We regret to inform you that due to changes in our corporate structure, your position is no longer needed at American Financial. This letter is to provide you two weeks’ required notice of your termination. You final day of employment will be August 26, 2013.

As part of your employee contract, you may apply for unemployment up to 30 days after the end of your contract and it will not be contested. Benefits will continue to be provided until that time. No salary changes will be made during this time, and all earned income will be deposited per usual on the first pay day following termination. We will be happy to provide a good reference for your next job.

Please be sure to turn over all current projects to your supervisor with details on the current state of each. Remember that all private information regarding clients is the property of American Financial. All information and company property, including the provided iPad and company documents, must be returned to American Financial by August 26, 2013. You will remain under our non-compete contract until August 26, 2014, as originally signed on your date of employment, and a copy can be provided if needed.

Any violation of the non-compete clause or violation of the company’s privacy policy will negate any severance benefits, as it breaks the terms of the employee’s contract with American Financial.


Scott Mayer

Scott Mayer

HR Department

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