Termination Letter Due to Lack of Work and Its Sample

During a decline in business or economic slowdown, a company has to lay off its workforce members. When it occurs, a letter explaining the situation will be useful to take some of the sting out of the termination. In this case, what you need is a termination letter due to lack of work.


What Does Lay Off Due to Lack of Work Mean?

In terms of job separation, we can define “lack of work” as a situation where your manager does not have enough work to justify keeping you on the payroll. He/she cannot afford to keep you on. Therefore, he/she terminates the employment.

Did You Lose Employment Due to Lack of Work?

A worker who is laid off for economic reasons – due to a reduction-in-force, lack of work, or a plant closing – is eligible for unemployment benefits. However, an employee who is fired isn’t always eligible for unemployment.

How to Make a Termination Letter Due to Lack of Work

This letter aims to notify an employee that he/she will lose a job for economic conditions. Here is how to make it:

  • Greet the employee politely.
  • Directly inform the employee about the specifics of the decision to terminate him/her, especially if only part of the work force is terminated.
  • Convey your appreciation for the years of services, hard work, and other positive information of the employee that can protect his/her self-esteem.
  • Close the letter with thank.
  • Sign & date the letter.

Tips to Make a Termination Letter Due to Lack of Work

This kind of letter should be made by consider the following tips:

  • Follow the proper format.
  • Pay attention to grammar and spelling.
  • Use formal and polite language.
  • Keep it concise and focused.
  • Make sure to include all the needed details.
  • Don’t forget to proofread the letter.

A Sample of a Termination Letter Due to Lack of Work

Below is a sample of such a letter:



111 Vegas Avenue

Dallas, Texas 77777

Dear Anne,

I regret inform you that your position at Premier League Services will be terminated effective January 15th, 2021. We’ve experienced customers significantly over the last 7 months. Even though we’ve cut costs in some areas, the savings is not enough to sustain this business. So, we have to reduce our workforce.

We’ll reduce our workforce from 50 employees to 35 employees. We appreciate all the employees’ loyalty. However, this is the best decision to make this business keep running well. I believe that you’ll find another position soon.

You’ll find an enclosed recommendation letter. You can use it to look for a new job. I’ve enjoyed working with you thoroughly. I hope you’ll keep in touch with us in the future. If you have any questions, just feel free to call me at (111)-111-1111.


Mrs. Bahamas Janne, Owner

Premier League Services


That is all about a termination letter due to lack of work. If your business face a similar condition and you want to reduce a workforce, you can make such a letter by following the sample above.



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