Termination Letter for Cause and Its Sample

An employee who fails to perform as expected is a liability to the reputation, productivity, and bottom line of the company. A termination letter for cause will summarize the justification of the employer for the decision. It also outlines future action the company can take to address the problem.


What Is Termination with Cause?

A termination for cause is a serious business. It happens when an employee’s action in the workplace, interaction with his/her employer, ways in which he/she treats a vendor/customer, or interaction with his/her coworkers is egregious that he/she requires an employment termination.

Do You Have to Give an Employee a Termination Letter?

Federally, in most countries, a termination letter is not needed legally. In some states, a termination letter is required by law such as in New Jersey, Illinois, California, and Arizona. Even though your country doesn’t require it, such a letter will be valuable to the employee and the business.

How to Make a Termination Letter for Cause

How to make such a letter can be done with the following steps:

  • Greet the terminated employee first.
  • After that, you have to list the details of the violation(s).
  • Then, you need to provide the evidence in order to prove the allegations.
  • In the end, close the letter politely.
  • End it up with your signature & name.

Tips for Making a Termination Letter for Cause

Some tips must be considered when you make such a letter:

  • It is usually made by a manager in the HRD, the manager of the employee, or the company’s owner.
  • It is better to ask an expert in employment law to review it.
  • It must follow the proper format.
  • Make sure to include all the needed details.
  • Avoid liability problems that relate to wrongful termination.

A Sample of a Termination Letter for Cause

For your reference, let’s pay attention to this sample:


Dear Jammy,

This letter confirms that your employment with Mayor Advertising Services is terminated for cause. We’ve documented the evidence that you abused your position clearly & willfully as a manager for this company.

On September 2nd, 2020, you authorized a company expenditure of $1,000 for the entertaining purpose. That is a direct violation. Our company policy says that any expenditure over $200 must be approved by a manager in the department. The recent audit revealed personal charges in no way pertained to company’s business including gas for your personal vehicle as well as meals that didn’t relate to client meetings.

You have to return any company’s property upon five days of receiving this letter. You’re given a detail of your last paycheck, pay for unused PTO, and commission pay. I hope you understand and accept this decision. Thank you for your work for our company. I hope you can find the better place for working.


Mr. Daniel, CEO

Mayor Advertising Services


That is all about a termination letter for cause. If you have an employee who did something that enforces you to terminate him/her, just write such a letter by following the sample above. It must be written based on the evidence you’ve collected.



You may also like...