Strategies of Writing An Employment Contract Termination Letter

As an employer of the company, you have a job to hire people to become the employees in your place. They need to sign an employment contract in which contains some job descriptions, benefits, and compensations. There is also a specified period of working that explains how long the employee will serve the company. Although the contract is a binding document, one party can terminate the contract before the period ends for certain reasons. To learn more about the employment contract termination letter, check the following strategies on how to write and its example.


Why should I end an employment contract?

Perhaps you wonder why you should end an employment contract. If you are the employer, you may have specific reasons for this termination, but you still do not realize them. Actually, there are some possible reasons to terminate an employment contract as follows.

·         Your employee has a bad attitude.

·         Your employee violates the company or contract rules.

·         Your employee thrives on drama.

·         Your employee shows low productivity.

What are some tips to write a contract termination letter?

There are several strategies you need to apply in writing an employment contract termination letter. Eventhough you get annoyed by the employee, you still have to remain a professional tone in the letter. Make sure you are straightforward to state the reasons without hurting the reader. Then, you need to give some examples of your employee’s behaviors that make you cancel the contract. Remember to mention the date when you want to end his or her service. Don’t forget to emphasize it by a statement that you will now renew the annual contracts.

How should I write a letter to terminate a contract?

When you write a letter of cancellation contract, you need to use formal and appropriate business language. Make sure you mention the employee’s identities and when they should stop his or her service. Direct him or her to the manager who takes care of termination. Note that you also have to explain the benefits and compensation that your employee will receive. Remind him or her to return any company property that they have.

Employment Contract Termination LetterExample

If you still have no idea to write the letter, you should look at the following example that we have provided for you.

Dear Mr.Nathan

It is with regret to announce that your term of employment at Seattle Island Company will end as of October 17, 2020. Unfortunately, we cannot renew your annual contract, and this decision is not revocable. Eventhough we are impressed with your quality of service, the current economic conditions force us to reduce our employees, including you.

You are going to receive your final remuneration without benefit pay. Furthermore, as stated in the contract, you are going to be paid for an additional 3 weeks of work. To know more about termination matters, please contact Mrs. Amanda as the HR manager.

Also, you are demanded to return all the company property that you have during working before the due date. The lists of company properties are computer and its components, keys, stationaries, calculator, and identification badge. Start from today, your email access to the customer accounts has been disabled.

I will be glad to provide you any letters of recommendation. Please do not hesitate to reach me on phone at (333)-5555-777 or by email at I wish we will continue to succeed.





Lewis Arthur


That is all a short explanation about composing an employment contract termination letter. We hope that our example gives you inspiration for writing.





You may also like...