Termination of employment letter

This letter records a dismissal that has already been decided: the reason, the date employment ends, how notice is dealt with, what the final payment covers and how to appeal. It is drafted with option blocks for the reason and for notice, so the version you send says one thing clearly rather than several things vaguely.

What it cannot do is repair the process. Before it is sent there must have been a written invitation setting out the allegations or reasons with the evidence, a proper investigation, a hearing at which the employee could put their case and be accompanied, and a decision taken with an open mind. The Acas Code applies to conduct and capability dismissals, and a tribunal can adjust an award by up to 25 per cent where an employer has unreasonably failed to follow it.

Do not rely on length of service

The qualifying period for ordinary unfair dismissal is two years, and falls to six months on 1 January 2027 under the Employment Rights Act 2025. Several claims need no qualifying period at all, including discrimination, whistleblowing and the other automatically unfair reasons. Follow a fair procedure whatever the length of service. Time limits for most tribunal claims also rise from three months to six on 1 October 2026, so a window you assume has closed may not have.

The written statement of reasons

An employee with the qualifying service can ask for a written statement of the reasons for dismissal, and it must be provided within 14 days. It must be given automatically, without any request, to an employee dismissed while pregnant or on statutory maternity or adoption leave. This letter is drafted so that it can serve as that statement.

What the letter covers

The meeting and the procedure followed. The decision and the reason, with options for misconduct, gross misconduct and summary dismissal, capability, redundancy after consultation, and some other substantial reason. The date employment ends. Notice, with three options: worked notice, garden leave, or a payment in lieu. Final pay, benefits and pension. Company property and information. Confidentiality and continuing obligations. The P45 and references. The right of appeal. A checklist to work through before sending.

When to consider a different route

Where there is real legal risk, for example a weak procedure, a long serving employee, a live grievance, or any discrimination or whistleblowing element, a protected conversation and a settlement agreement may be the better course. Dismissal is high risk and the detail matters, so have the procedure and the letter reviewed before sending.