When it comes to employee termination, it is essential to have all the necessary documentation in place. One of the most crucial documents is the employee termination letter. This letter outlines the reasons for termination and any details about severance pay, benefits, or other agreements.

To help you draft a legally binding termination letter, we have put together an employee termination letter agreement sample that you can use as a reference. This sample agreement contains the key elements that must be included in a termination letter to protect both the employer and the employee.

Employee Termination Letter Agreement Sample:

[Date of Termination Letter]

Dear [Employee Name],

We regret to inform you that your employment with [Company Name] is hereby terminated, effective [Date of Termination]. The reasons for your termination include [Reasons for Termination].

Pursuant to [State] laws and regulations, you are entitled to receive [Severance Pay/Benefits/Compensation] as outlined in your employment agreement. Please be aware that these payments are subject to [applicable taxes].

You are also required to return all company property promptly, including but not limited to [List of Company Property]. Failure to return this property in good condition may result in legal action.

In consideration of the above, you agree to waive any and all claims or actions against [Company Name] arising out of your employment or termination of employment, including but not limited to any claims of discrimination, harassment, or wrongful termination.

You acknowledge that you have not suffered from any work-related injuries or illnesses while employed by [Company Name], and that you understand and agree to the terms outlined in this letter.

Please sign below to acknowledge your agreement to these terms.


[Your Name]

[Company Name]

[Signature line for employee]


This sample employee termination letter agreement covers all the essential elements that should be included in a termination letter to ensure that both parties are protected. It is critical to have a clear, concise, and legally binding letter to avoid any potential legal disputes down the line.

In conclusion, if you are an employer, it is important to follow the proper protocol when terminating an employee. This includes drafting a termination letter that outlines the reasons for termination, severance pay, and any other agreements or waivers that the employee must sign. By doing so, you can protect your company from potential legal issues while also ensuring that the employee understands the terms and conditions of their termination.