What is a Termination Notice? A Comprehensive Guide for Employees and Employers

Getting a termination notice can be an emotional and stressful experience for employees. As an employer, having to terminate someone is also difficult. This guide covers everything both parties need to know about termination notices – from legal requirements to best practices for handling them professionally.

What is a Termination Notice?

A termination notice, also called a termination letter is a written notification from an employer formally letting an employee know that their job is ending.

There are two main types of termination notices

• Voluntary – When an employee resigns, they would give their employer a letter announcing their choice to leave the job. This is considered voluntary termination.

• Involuntary – When the employer decides to let an employee go, they give notice terminating the job. This is involuntary termination initiated by the company.

The termination notice provides key details like the last day of employment and any final pay or benefits It makes the end of the working relationship official and gives both sides closure

Is a Termination Notice Required Legally?

In most cases, employers are not legally mandated to provide termination notices or letters when firing employees. At-will employment, applicable in all U.S. states except Montana, permits companies to dismiss staff at any time without warning or cause.

However, if an employment contract exists that requires specific notice periods, the provisions in the contract must be followed. Certain exceptions like mass layoffs also require 60-days advance written notice under federal law.

So while termination letters are not an across-the-board legal obligation, giving notice is considered standard professional practice for most employers. Proper notice demonstrates respect for employees and helps minimize legal risks.

What Should a Termination Notice Include?

A termination letter should be direct yet thoughtful in tone. Here are the key components it should cover:

• Statement that employment is ending – This gives clear, unambiguous notice that the job will terminate. Avoid euphemisms that could dilute the message.

• Final work date – Specify the exact last day the employee will be paid and expected to work. This date should align with any notice period requirements.

• Eligibility for rehire – If applicable, state whether the employee is eligible for future rehire based on the circumstances.

• Final pay details – Explain when the employee will receive their final paycheck and payout of any unused PTO/vacation per company policy.

• Benefits discontinuation – Indicate when health insurance and other benefits will lapse based on policy timelines. Offer COBRA information.

• Company property return – List any items like keys, laptops, or security passes that must be returned upon separation.

• Reason for termination – While not always required, giving a reason for ending employment can provide helpful context and closure.

How Much Notice Should You Give?

For voluntary resignations, standard practice is to provide 2-4 weeks advance notice to your employer. This allows them reasonable time to handle the transition smoothly.

Many companies do not have a formal policy for how much notice to provide terminated employees. Often 1-2 weeks is given, depending on position seniority and circumstances. However, offering more notice is considered courteous and prudent.

Key factors impacting appropriate termination notice periods:

• Seniority level – More advanced roles warrant longer periods.

• Performance issues – Fast action needed for problem employees.

• Industry standards – Some fields have longer notice norms.

• Position criticality – Vital roles need longer knowledge transfer.

• Access level – Shorter notice for those with extensive access to reduce risk.

Think carefully about what notice timeline makes most sense based on the situation. Consult legal counsel as needed if concerned about potential liability.

Best Practices for Delivering the Notice

How you deliver a termination notice matters greatly. Follow these recommended practices:

• In person – Whenever possible, meet with the employee face-to-face to review the letter. This shows respect and compassion.

• Private location – Hold the meeting in a quiet, private space like a conference room to protect privacy and dignity.

• Business hours – Deliver notices during normal business hours – not early/late or outside of work.

• Documentation – Have the employee sign an acknowledgement of receiving the letter for your records.

• Professional demeanor – Maintain a calm, compassionate tone – not angry or confrontational.

• Limit audiences – Only essential decision-makers should be present to avoid intimidation.

• Describe next steps – Explain what the transition plan and offboarding process entails.

• Listen empathetically – Allow space for the employee to process the news and respond before ending the conversation.

• Offer assistance – Provide any severance pay details and offer to help with references or job search.

• Retrieve company property – Collect any equipment or materials that must be returned according to policy.

Making thoughtfully delivering termination notices a priority goes a long way in upholding positive employee relations and mitigating legal risks.

What Should You Do Once You Receive Notice?

Getting a termination notice can stir up many emotions – from anger to panic to relief. But it’s important to handle this transition professionally.

Here are tips if you are terminated:

• Take time to process the news before reacting.

• Ask clarifying questions about the reasons and next steps.

• Request a letter of recommendation from your manager.

• Explore if negotiated separation terms are possible.

• Share feedback about your experience at the company.

• Begin organizing a job search plan including updating your resume.

• Contact unemployment offices to learn about eligibility for benefits.

• Consider career counseling to evaluate new options matching your strengths.

• Update your networks about your job change and seek referrals.

• Reflect on lessons learned from this experience that can aid your career growth in a new organization.

While termination notice can feel jarring in the moment, stay focused on the future and use it as a springboard to your next opportunity.

Termination Etiquette – How to Maintain Professionalism

Getting terminated or having to terminate someone both require professional etiquette to avoid bridges burned. Here are tips:

For employees:

• Don’t get emotional or lash out at the employer. Stay calm.

• Don’t take it personally – try to understand the business reasons.

• Express appreciation for the opportunities you were given.

• If needed, request time to process before further discussing.

• Be cooperative with transition plans and offboarding procedures.

• Return all company property promptly in good working order.

• Don’t badmouth the company to coworkers or externally.

For employers:

• Be transparent and direct about the termination reason but empathetic in tone.

• Allow the employee chance to respond and share their perspective.

• Assure the employee this is not a personal attack on them.

• Provide positive references to future employers if possible.

• Don’t discuss private employee info or make disparaging comments.

• Keep the termination letter professional and focused just on necessary facts.

• Compensate the employee for any owed wages, vacation days, etc.

• Offer assistance such as severance pay, job search help, or career counseling.

• Have a transition plan to cover duties and inform team members respectfully.

Honoring each other’s humanity and upholding ethics makes termination less traumatic for all.

Can You Rescind a Termination Notice?

Rescinding termination notices already given to employees is legally permissible in most cases, but should be approached cautiously.

If termination was for performance issues and the problems persist, rescinding notice sends the wrong message and prevents needed change. However, if after further thought termination seems too harsh a measure, revoking the notice may be reasonable.

Discuss the situation openly with the employee and get their input on desire to stay or go. Never rescind notice just to then fire the employee again shortly after – this is unethical.

Make sure to document carefully in writing if notice is rescinded on either side. Get legal guidance to ensure compliance with any laws around retaliation claims related to protected class status.

What Should You Avoid When Terminating?

While ending employment relationships is sometimes necessary, there are certain termination practices that should be avoided:

• Avoid firing based on discrimination against protected classes.

• Avoid very short notice periods unless no other option.

• Avoid firing as a knee-jerk angry reaction. Cool down first.

• Avoid criticizing the employee personally during termination.

• Avoid firing employees right before holidays or major life events if possible.

• Avoid terminating without having a solid business justification to share.

• Avoid doing it publicly or allowing gossip about the firing.

• Avoid rescinding notice just to terminate again later.

• Avoid refusing to provide accurate references to future employers.

• Avoid trying to compensate for firing someone by offering over-the-top severance or benefits.

• Avoid firing employees in a completely detached, impersonal manner.

While employment endings are rarely easy, following best practices minimizes