What is a Termination Letter for Convenience?
A Termination Letter for Convenience is a formal written notice by either the company or the employee to end the employment relationship without specifying fault or wrongdoing.
When the company initiates the termination, it is typically due to reasons such as restructuring, downsizing, or changes in business priorities. When the employee initiates the termination, it is usually because they have found another job, want to pursue other opportunities, or for personal reasons. When initiated by the employee, it is often referred to as a resignation or voluntary resignation.
This template can help to ensure a clear and legally sound termination process for both the employer and the employee.
A high-quality draft covers, among other things, the following matters:
- Introduction and purpose
- Reasons for termination
- Effective date
- Notice period
- Severance package, if any (only in case company initiates the process)
- Return of company property
- Final settlement details
- Reminder of confidentiality obligations
- Next steps
- Contact information
