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Note: Want to skip the guide and go straight to the free templates? No problem - scroll to the bottom.
Also note: This is not legal advice.

Introduction

When it comes to ending an employee’s contract of employment, many employers struggle with writing a dismissal letter. Writing one requires knowledge of both the law and the relevant employment contract which can often feel daunting and complex. This guide is designed to help employers ensure their dismissal letters are legally sound, fully compliant, and in line with the conditions of the employee’s contract.

It is important the dismissal letter clearly outlines all reasons for termination and any related legal procedures that should be followed. Additionally, it must set out any entitlements due to the employee upon termination - such as accrued wages or holiday pay - so these can be easily understood by all parties. To avoid potential claims for unfairness, employers must also demonstrate that correct processes have been followed when issuing a dismissal letter by stating why they have taken this decision.

Undersigning is also essential; both employer and employee need to sign off on the document in order to protect against potential claims of wrongful dismissal. Dismissal letters must also be sent in a timely manner - as soon as possible after decision has been made - and in accordance with prescribed methods outlined by law; typically via post unless otherwise requested by employees themselves who may prefer electronic delivery.

Getting it right when it comes to drafting a dismissal letter is key for many reasons which include protection from legal claims for unfairness or wrongful termination down the line. With this in mind, The ��������Ƶ Team provides access to our community template library comprising millions of datapoints teaching our AI-driven platform what a market-standard dismissal letter looks like so anyone can draft up high quality documents without needing an expert lawyer or incurring unnecessary costs associated with hiring legal representation. Use our step-by-step guidance today along with access to our template library without needing an account at ��������Ƶ – just follow this guide if you’re looking for help crafting your own legally compliant and up-to-date dismissal letters quickly and easily!

Definitions (feel free to skip)

Relevant Laws and Regulations: Laws and regulations that are related to the situation and must be followed.
Consulting: Seeking advice from a professional in order to understand the requirements of a situation.
Documenting: Writing down information such as dates and details.
Gathering Evidence: Collecting proof or facts in order to support a decision.
Courteous: Polite and respectful.
Concise: Clear and to the point.
Appropriate Language: Language that is suitable for the situation.
End Date of Employment: The date on which an employee’s employment will end.
Restrictions or Limitations: Rules or boundaries that must be followed.
Accrued Wages: Money earned by the employee during the course of their employment.
Holiday Pay: Money paid to the employee for their holidays.
Redundancy Pay: Compensation given to an employee when they are dismissed due to redundancy.
Pension Entitlements: Benefits related to retirement given to an employee.
Healthcare Entitlements: Benefits related to health care given to an employee.
Timeline: A schedule or plan of when something will happen.
Relevant Organizations or Services: Organizations or services that can provide advice or assistance.
Payroll Department: The department responsible for paying employees.
HR Department: The department responsible for managing personnel.
Necessary Signatures: Signatures required to make a document legally binding.

Contents

• Overview of the legal requirements for writing a dismissal letter in the UK
• Researching relevant laws and regulations
• Consulting with HR professionals or legal advisors
• Clarifying the reasons behind the dismissal
• Documenting any incidents that led to the dismissal
• Gathering evidence to support the decision
• Crafting the letter in a professional and respectful manner
• Writing the letter in a courteous and concise way
• Selecting appropriate language for the letter
• Specifying the terms of the dismissal
• Clarifying the end date of employment
• Outlining any restrictions or limitations that apply
• Providing any benefits or entitlements due to the employee
• Calculating any accrued wages, holiday pay, or redundancy pay
• Listing any additional benefits that the employee is entitled to
• Providing a timeline for when the dismissal will take effect
• Specifying the date of the dismissal
• Allowing adequate time for the employee to make any necessary arrangements
• Suggesting further resources and support for the employee
• Providing a list of any relevant organizations or services
• Encouraging the employee to seek further advice or assistance
• Outlining the process for appealing the dismissal, if applicable
• Explaining the conditions for appealing the dismissal
• Notifying the employee of the time frame for making an appeal
• Contacting relevant departments to inform them of the dismissal
• Notifying the payroll department of the change in employment status
• Informing the HR department of the dismissal
• Signing and sending the letter
• Obtaining the necessary signatures for the letter
• Sending the letter in a timely manner

Get started

Overview of the legal requirements for writing a dismissal letter in the UK

• Become familiar with the UK’s statutory dismissal laws, including the Employment Rights Act 1996, the Unfair Dismissal Act 1977 and the Acas code of practice
• Understand your company’s internal dismissal procedures and ensure that you are compliant with them
• Consider any contractual obligations that may apply to the employee being dismissed
• Understand the potential for legal action if the dismissal is not considered fair

Once you’ve completed an overview of the legal requirements for writing a dismissal letter, you can move on to researching relevant laws and regulations.

Researching relevant laws and regulations

• Search online or in a library for applicable UK labour laws and regulations
• Read the relevant texts thoroughly and make notes of any relevant points
• Make sure to read up on the latest changes in relevant laws and regulations
• Once you have a good understanding of the relevant laws and regulations, you can move on to the next step in the guide.

Consulting with HR professionals or legal advisors

• Find a qualified HR professional or legal advisor that is familiar with local employment laws
• Discuss the details of the dismissal with the advisor, including the reasons for dismissal and any other relevant information
• Ask the advisor to provide advice on the dismissal and any other factors the employer should consider
• Make sure the advisor is familiar with any applicable laws and regulations so that their advice is accurate
• When you are satisfied with the advice you have received and have incorporated it into your dismissal letter, you can check this off your list and move on to the next step.

Clarifying the reasons behind the dismissal

• Speak to other people in the company who may be aware of the reasons behind the dismissal
• Consider if the dismissal is due to a performance issue or a misconduct issue
• If the reason is related to performance, consider if the employee was given the opportunity to improve their performance
• If the reason is misconduct, ensure there is sufficient evidence to back up the decision
• Ensure that the reason for the dismissal does not constitute an unlawful act such as discrimination

You can check this step off your list when you are confident that the reasons behind the dismissal are clear and legally sound.

Documenting any incidents that led to the dismissal

• Identify any incidents that have occurred that have led to the need for dismissal
• Document these incidents and the dates they occurred
• Create an evidence file containing any relevant documents such as emails, warnings or other relevant paperwork
• Check that the evidence is up-to-date and accurate
• When you have gathered all the necessary evidence and have documented the incidents, you can check off this step and move on to the next step in the process.

Gathering evidence to support the decision

• Obtain copies of emails, memos, and other documents that may have been used to support the decision
• Review the employee’s performance reviews and any other documents that have been created to document their performance
• Speak with other personnel who may have been involved in the decision-making process and obtain any additional supporting evidence
• When you have gathered all the necessary evidence to support the decision, you can move on to the next step: crafting the letter in a professional and respectful manner.

Crafting the letter in a professional and respectful manner

• Choose a professional and respectful tone when writing the letter
• Begin the letter by explaining the purpose of the letter, e.g. “This letter is to inform you that your employment is being terminated”
• Include a brief summary of the events leading to the dismissal, but be sure to stick to the facts
• Remain courteous and professional throughout the letter
• Explain the consequences of the dismissal, e.g. “Your last day of employment will be [date]”
• Provide details of any payments owed, e.g. any outstanding salary, holiday pay, and final salary payment
• Include information regarding the employee’s right to appeal the dismissal
• End the letter with a closing statement

When you’ve completed this step, you should have a letter that is professional, respectful, and courteous.

Writing the letter in a courteous and concise way

• Use a professional and positive tone throughout the letter
• Refrain from using language that is too formal or too informal
• Ensure the letter is direct, while still being respectful and polite
• Keep the content of the letter concise and direct, avoiding any unnecessary detail
• Use clear, precise language that leaves no room for misinterpretation
• Confirm the recipient’s right to appeal against the decision
• End the letter with a polite and courteous sign off, such as ‘Yours sincerely’

When you can check this off your list:

• Once you have written the letter in a courteous and concise way, you can move on to the next step of selecting appropriate language for the letter.

Selecting appropriate language for the letter

• Choose language that is professional and respectful
• Avoid using overly negative language
• Use language that is legally accurate and compliant with employment law
• Keep in mind the tone of the letter should be impartial and objective
• When finished, review the letter to make sure it is in line with the company’s policies and procedures
• Once the language has been selected, you can complete this step and move on to specifying the terms of the dismissal.

Specifying the terms of the dismissal

• Specify the legal basis for the dismissal, such as gross misconduct or redundancy
• Detail the date that the dismissal is effective from
• Detail any payments or entitlements that the employee will receive upon the dismissal
• Outline any conditions or restrictions that the employee should be aware of
• Include a statement outlining the employee’s ongoing obligations

Once you have included all of the necessary details, you can check this off your list and move on to the next step.

Clarifying the end date of employment

• Check the employee’s contract to determine their termination date
• Write the employee’s termination date in the dismissal letter
• Make sure the termination date is clear and that it complies with any contract provisions
• When you are confident the termination date is accurate, you can move on to the next step in the dismissal letter process.

Outlining any restrictions or limitations that apply

• Review any applicable employment law and restrictions
• Identify any confidentiality or non-compete agreements that need to be communicated in the dismissal letter
• Include any restrictions or limitations in the dismissal letter, such as non-disclosure of confidential information or non-competition clauses
• Check that the restrictions or limitations are fair and reasonable
• Once you’ve outlined the restrictions or limitations, you can move on to providing any benefits or entitlements due to the employee in the dismissal letter.

Providing any benefits or entitlements due to the employee

• Review the employee’s contract and any relevant employment legislation to determine what benefits or entitlements are due to the employee as a result of the dismissal.
• Ensure any benefits or entitlements are paid on the date of dismissal or as soon as possible thereafter.
• Check if the employee is entitled to any additional benefits or entitlements, such as a pension or a bonus.
• Ensure that any benefits or entitlements due to the employee are paid in full.
• Once all benefits or entitlements have been paid, check them off your list and move on to the next step.

Calculating any accrued wages, holiday pay, or redundancy pay

• Review the employee’s payslips and/or employment contract to determine any accrued wages, holiday pay, or redundancy pay that is due
• Calculate the total amount due and make a note of it
• You can check off this step when you have determined and recorded any accrued wages, holiday pay, or redundancy pay that is due to the employee

Listing any additional benefits that the employee is entitled to

• Check the terms of the employee’s contract to ascertain if they are entitled to any additional benefits, such as bonuses or end of service payments.
• Check with the HR Department to see if the employee is entitled to any additional benefits, such as a company car or mobile phone.
• If the employee is due any additional benefits, list these in the dismissal letter.
• Once you have listed any additional benefits due to the employee, you can proceed to the next step, which is to provide a timeline for when the dismissal will take effect.

Providing a timeline for when the dismissal will take effect

• Include the exact date that the dismissal will take effect, ensuring that it is in line with any contractual terms
• Ensure that the timeline allows for the employee to receive any statutory notice period they may be entitled to
• Specify any additional benefits that the employee may receive up until the date of dismissal, such as any wages or holiday pay
• Ensure that the timeline is compliant with all relevant employment legislation
• When all of the steps have been completed, you can move on to the next step of the guide.

Specifying the date of the dismissal

• Double-check the employee’s contract to ensure their notice period is correct
• Confirm the date for the employee’s dismissal with their line manager
• Use the employee’s contract and the date of dismissal to calculate the end date
• Write the end date in the dismissal letter

Once you’ve double-checked the employee’s contract, confirmed the date for the employee’s dismissal with their line manager, used the employee’s contract and the date of dismissal to calculate the end date, and written the end date in the dismissal letter, you can check this step off your list and move on to the next step.

Allowing adequate time for the employee to make any necessary arrangements

• Provide the employee with at least one week’s notice before the dismissal date – this should be specified in the letter.
• Give the employee time off to make any necessary arrangements such as finding alternative employment or arranging to move home.
• Explain that the employee is entitled to their usual pay and benefits during the notice period.
• Make sure the employee is aware of the available resources and support, such as HR or a trade union representative.

Once you have ensured that the employee has been provided with enough time to make any necessary arrangements, you can check this step off your list and move on to the next step.

Suggesting further resources and support for the employee

• Consider providing contact details for any relevant organizations or services that may be able to assist the employee, such as career advisors, debt counselling, or other services that could help the employee in the transition.
• Explain to the employee that you are available to provide further support or guidance if necessary.
• Ensure that the employee is aware of any relevant benefits they may be entitled to, such as job seekers allowance.
• When you have covered all the necessary points and provided the necessary resources and support, you can move on to the next step.

Providing a list of any relevant organizations or services

• Provide a list of relevant organizations and services that could provide assistance to the employee.
• Include the names, addresses, and contact information of any organizations or services that could provide further advice or assistance.
• Make sure the list is comprehensive and up-to-date.
• Check with any local government departments or professional organizations for information about relevant services.
• Once the list is complete, you can move on to the next step.

Encouraging the employee to seek further advice or assistance

• Let the employee know that they have the right to seek advice or assistance from any organization or service they deem appropriate.
• Provide the employee with contact information for any relevant organizations or services mentioned in the previous step.
• Explain to the employee that they can contact the organization or service to discuss their situation and to get advice on their legal rights.
• Make sure to reiterate that the employee is not obligated to seek advice or assistance from the organization or service provided, and is free to contact any other organization or service of their choice.
• When you are confident that the employee is aware of their right to seek further advice or assistance and has been provided with the resources to do so, you can check this step off your list and move on to the next step.

Outlining the process for appealing the dismissal, if applicable

• Explain the employee’s right to appeal the dismissal.
• Provide details of the appeal process and any relevant appeal forms.
• Give a timeline for filing the appeal, including the deadline.
• Include a statement that the employee may be accompanied by a colleague or a trade union representative at the appeal hearing.
• Explain that the employee can call upon witnesses to support their case.

Once you’ve explained the appeal process, you can check this step off your list and move on to the next step.

Explaining the conditions for appealing the dismissal

• Explain the legal basis upon which the employee may lodge an appeal
• Explain the time limit within which an appeal must be made
• Explain the procedure for making an appeal
• Outline the grounds upon which an appeal may be made
• Inform the employee of their right to be accompanied by a work colleague, friend or trade union representative
• Advise the employee of their right to receive a written response to their appeal within a reasonable period of time
• Check that all the necessary information has been provided to the employee
• After you have included all the necessary information in the dismissal letter, you can move on to the next step.

Notifying the employee of the time frame for making an appeal

• Provide the employee with a copy of the company’s disciplinary and dismissal policy, including the section about the right to appeal.
• Give the employee a reasonable amount of time to lodge an appeal (this should be written in the policy).
• Make sure that the employee is aware of the time frame and when the appeal period ends.
• Document in writing that the employee has been advised of their right to appeal.

You’ll know you can move on to the next step when you have provided the employee with written documentation of their right to appeal, and that they have been notified of the time frame for making an appeal.

Contacting relevant departments to inform them of the dismissal

• Compile list of any relevant departments that need to be informed of the dismissal
• Contact the relevant departments individually and provide them with the required information
• Keep a record of all communication with the relevant departments
• Once all relevant departments have been contacted and the required information has been provided, you can check off this step and move on to the next step.

Notifying the payroll department of the change in employment status

• Contact the payroll department to provide them with the required information to update the employee’s records
• Notify them of the employee’s new employment status
• Provide them with the relevant dates, such as the final day of the employee’s employment
• Give them any relevant paperwork, such as the notification of termination letter
• Ask the payroll department to confirm they have updated the records and that they will process the employee’s final payments

Once you have contacted the payroll department, provided them with the necessary information and paperwork and received confirmation that they have updated the records you can check this step off your list and move on to informing the HR department of the dismissal.

Informing the HR department of the dismissal

• Notify the HR department of the dismissal by email or letter
• Include the employee’s name, job title and the date of dismissal
• Mention the reasons for the dismissal
• Explain any benefits the employee may be entitled to
• Inform the employee of any appeal process
• Provide the employee with a written summary of their dismissal
• Once you have informed the HR department of the dismissal, you can check this off your list and move on to the next step of signing and sending the letter.

Signing and sending the letter

• Sign the letter with your name, title and signature
• Make sure you have the correct address for the employee
• Place the letter in an envelope and seal it
• Send the letter via registered mail
• Check your records to make sure the letter has been sent
• Once the letter has been sent, you have completed this step of writing a dismissal letter

Obtaining the necessary signatures for the letter

• Contact the relevant authorized signatories
• Ask them to sign the dismissal letter
• Ensure they receive a copy of the signed letter
• Check that all signatures are present and in the designated place
• When all signatures have been obtained, you can move on to the next step of sending the letter in a timely manner

Sending the letter in a timely manner

• Ensure you have the correct contact details for the employee, such as their home address
• Draft and sign the letter
• Place the letter in an envelope and affix the correct postage
• Send the letter via Royal Mail tracked and signed for delivery
• Keep a copy of the letter for your records
• Check off this step once you have sent the letter and kept a copy of it
• Proceed to the next step when you have checked this off your list.

FAQ:

Q: Is there a timeframe within which I must send the dismissal letter?

Asked by Tanner on February 8th 2022.
A: Yes, you must send the dismissal letter within a reasonable period of time after the decision to dismiss has been made. This is usually within 7 days. However, the exact timeframe for sending the dismissal letter will depend on the specific circumstances of your case and whether any prior warnings or notices were issued to the employee before their dismissal. You should also be aware that there are different timescales in place for different types of dismissal. For example, in cases of gross misconduct, you may need to issue the dismissal letter immediately.

Q: Can I use a dismissal letter if I’m an employer based in Scotland?

Asked by Lily on April 3rd 2022.
A: Yes, you can use a dismissal letter if you are an employer based in Scotland. The same principles apply when writing a dismissal letter in Scotland as in England and Wales, including providing notice to the employee and ensuring that the decision to dismiss is fair and reasonable. However, there may be specific laws in Scotland relating to unfair dismissals which you should take into account when writing your dismissal letter. It is always advisable to seek legal advice before issuing a dismissal letter to ensure that your procedure is compliant with relevant legislation.

Q: What other documents should I provide with my dismissal letter?

Asked by Mason on August 17th 2022.
A: Depending on the circumstances, it may be necessary for you to provide other documents alongside your dismissal letter. These can include things like payslips, copies of employment contracts, references from previous employers, and any relevant documents related to disciplinary proceedings or warnings that were issued prior to the employee’s dismissal. If you are unsure about which documents should be included with your dismissal letter, it is best to consult with an employment lawyer first who can advise you on what is required.

Q: How do I ensure my dismissal letter complies with GDPR?

Asked by Emma on June 26th 2022.
A: When writing a dismissal letter it is important to ensure that it complies with data protection laws such as GDPR (General Data Protection Regulation). This means that you must ensure that all personal data about the employee is processed securely and handled in accordance with data protection principles. Be sure to never include any personal information about an employee which could be used to identify them in your dismissal letter. Furthermore, any data that you include must only be used for the purpose for which it was collected and not shared or used for any other purpose without their explicit consent.

Q: What other steps do I need to take when dismissing an employee?

Asked by Logan on January 14th 2022.
A: Dismissing an employee involves more than just writing a dismissal letter - there are other steps that should be taken both before and after issuing the letter in order to ensure compliance with relevant legislation. This includes providing notice to the employee as well as carrying out an investigation into any allegations which form part of the reason for their dismissal (if applicable). It is also important that employers inform any relevant governmental bodies or trade unions about any dismissals they make - failure to do this could lead to legal repercussions so it is essential that employers stay up-to-date with their obligations under UK law when dismissing employees.

Example dispute

Suing an Employer for Unlawful Dismissal

• Review the dismissal letter to assess if there were any violations of the employment contract or of employment laws.
• Assess if there were any violations of the employee’s rights such as discrimination, harassment, or wrongful dismissal.
• Determine if there are any damages that the employee is entitled to from the dismissal, such as lost wages, benefits, or emotional distress.
• File a complaint with the local labor board or a civil lawsuit if applicable.
• Use evidence such as the dismissal letter and any other relevant documents to support the case.
• Work with an attorney to negotiate a settlement or proceed to a trial if necessary.
• If damages are awarded, they may include lost wages, benefits, legal fees, and/or emotional distress.

Templates available (free to use)

Advice On Constructive Dismissal Letter To Employee
Employee Dismissal Letter Due To Ill Health

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