So, what should be front and centre in a failproof termination of employment letter? And what shouldn’t appear at all?
Here's our common sense, no jargon tips to compliant job termination, for both employers and offboarding employees.
What Should a Termination Letter Include?
You might be dealing with straightforward redundancy. Or it could be an immediate termination letter to an employee for unacceptable behaviour. In any event, a termination letter must cover the following key elements:
- Reason for dismissal - For example, capability, conduct, redundancy. Be specific, not vague
- Final date of employment - Stated clearly with no ambiguity
- Notice arrangements - Working notice? Garden leave? Payment in lieu of notice (PILON)?
- Final pay breakdown - Unused holiday, last salary, anything outstanding
- Company property - Laptops, phones, building passes, keys, system access
- Right to appeal - Who to contact and the deadline to do so in writing
Omission any of these hands the employee leverage they wouldn't otherwise have had.
But what about the don’ts?
When a Termination Letter Becomes a Tribunal Risk
These negative factors come up time and again as the guilty culprits of job termination letters. And truthfully, they're all avoidable:
- Vague language - For example, "We no longer require your services" isn’t a legally fair reason for an employee termination letter
- Insufficient notice - Statutory and contractual minimums apply unless it's a termination letter to an employee for unacceptable behaviour
- No appeal right included - This is termination letter #101
- Unfair dismissal - To be clear, no two-year qualifying period protects you in such cases
- Failure to provide written reasons - Employees with two or more years' of service have every right to insist on this
So, let’s move on to what these reasons might be - and when you can legitimately cite them.
Unfair Dismissal and Length of Service
Standard unfair dismissal requires two or more years of service. It applies in scenarios such as the following:
- No valid reason for job termination
- Insufficient evidence
- Failure to follow a fair procedure under the Acas Code of Practice on disciplinary and grievance procedures
But some dismissals are automatically unfair from day one, with no qualifying period or grey area. They include:
- Whistleblowing
- Pregnancy, maternity, or parental leave
- Health and safety complaints or refusing dangerous work
- Asserting a statutory right, such as minimum wage or flexible working
- Unlawful discrimination under the Equality Act 2010
In addition, constructive dismissal is also worth flagging.
Imagine an employee resigns for one of these reasons:
- Unchecked bullying
- ·Unauthorised pay cut
- Fundamental changes to their role
They can still instigate a claim, even if a formal termination letter hasn’t been issued.
The individual circumstances of every job termination and every termination of employment letter are vital when your employer branding and mounting legal costs are at stake.
Cut Corners at Your Peril
A template forwarded by a contact or something you Googled might look fine to the untrained eye.
But proceed with caution. The smallest omissions or outdated wording can – and do - unravel an otherwise solid process.
And remember, a fair investigation and disciplinary process must have happened first, even if you’re issuing an immediate termination letter to an employee for unacceptable behaviour.
Don’t Let a Termination of Employment Letter Ruin a Good Process
Ultimately, a flawed employee termination letter is double trouble, because it:
- Weakens your case
- Signals a tribunal due process wasn't followed in the first place
For these reasons, it’s advisable to get advice early, which almost always costs less than the alternative.
At Taurus HR & Employment Law, we help you get every termination letter right first time, and defend you when things have already gone wrong.
Get in touch about a termination of employment letter, or if you’re looking for an outsourced HR partner or employment lawyer for retained services.