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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

Writing an employee dismissal letter is an important process which should not be overlooked by employers. Whether processing a dismissal due to misconduct, poor performance or redundancy, it is essential for both parties to have clarity and legal protection when terminating employment.
The ��������Ƶ team understands the crucial role that employee dismissal letters play in the workplace, and we are dedicated to providing guidance on how to create these documents quickly and efficiently. With our open source legal template library, you can easily draft your own high quality dismissal letter in just minutes. Our free community library contains millions of data points which provide invaluable insight into what a market-standard termination document looks like - so no matter if you’re based in the US or in Saudi Arabia, you can trust that your document will be compliant with local laws.
By taking the time to explain your decision via a formal letter, you can ensure that the termination process meets both legal requirements and standards of respect. Clarity surrounding why employment has ended can be beneficial for both the employer and employee; while it provides employers with legal protection from any potential action taken by former employees, it also assists employees in understanding why their employment ended and could thus prove useful as they progress through their job search.
At ��������Ƶ we believe that having access to quality documents shouldn’t come at an expensive price tag - or require using a lawyer - which is why we offer this comprehensive guide on writing reasonable employee dismissal letters free of charge. If you would like more information about how access our template library today please read on below!

Definitions (feel free to skip)

Dismissal: The act of terminating an employee’s employment with a company.

Documents/Evidence: Official records, such as contracts and performance appraisals, that can be used to support a dismissal.

Relevant Laws/Regulations: Laws and regulations applicable to a dismissal, such as those regarding discrimination, harassment, and other workplace issues.

Severance Package: A financial or other type of compensation offered to an employee upon termination of employment.

References: A statement of recommendation or evaluation provided to an employee by a former employer.

Disparage: To speak negatively or criticize.

Benefits: Monetary or non-monetary support provided to an employee, such as health insurance or retirement plans.

Final Paycheck: The last payment that an employee receives from an employer.

Outplacement: Assistance provided to an employee to help them find new employment.

Exit Interview: A meeting between an employee and their employer to discuss the employee’s experience with the company.

Return of Property: The act of returning any company property to an employer, such as keys and access cards.

Follow-up: The process of checking on the status of something to ensure it is complete.

Contents

• Prepare for the Dismissal
• Ensure that the employee is aware of the pending dismissal and prepare any relevant documents or evidence.
• Reasons for Dismissal
• Explain to the employee why they are being dismissed, including any relevant laws and regulations.
• Timing
• Give the employee a timeline of when the dismissal will take effect.
• Severance
• Explain any available severance packages, if applicable.
• References
• Offer to provide a favorable reference, if the employee has performed satisfactorily.
• Professionalism
• Remind the employee to remain professional throughout the process, including not to disparage the company.
• Benefits
• Explain any benefits that the employee is entitled to receive after the termination.
• Final Paycheck
• Provide details on when and how the employee will receive their final paycheck.
• Outplacement
• Offer advice and resources to help the employee find new employment.
• Exit Interview
• Ask the employee to participate in an exit interview to provide feedback on their experience with the company.
• Return of Property
• Remind the employee to return any company property, including keys and access cards.
• Follow-up
• Schedule a follow-up meeting to ensure that all necessary paperwork has been completed.

Get started

Prepare for the Dismissal

• Consider all available options before making the decision to dismiss the employee
• Gather relevant evidence that supports the decision to dismiss
• Consult with any relevant colleagues or an HR representative
• Confirm that the employee’s dismissal is in compliance with the company’s policies, procedures and labor laws
• When all of these steps have been taken, you can move on to the next step of ensuring that the employee is aware of the pending dismissal and any relevant documents and evidence.

Ensure that the employee is aware of the pending dismissal and prepare any relevant documents or evidence.

• Schedule a meeting with the employee to inform them of the pending dismissal.
• Prepare any relevant documents or evidence that is needed to support the decision of dismissal.
• Ensure that the employee is aware of the policies and procedures they have violated.
• Make a copy of the dismissal letter and provide it to the employee.

Once the employee is informed and the relevant documents are prepared, you can move on to the next step.

Reasons for Dismissal

• Determine the reason for the employee’s dismissal, such as misconduct, poor performance, or a violation of company policy.
• Gather any relevant evidence needed to support the decision to dismiss the employee, such as documentation of warnings or previous incidents.
• Consider any legal requirements that must be met in order for the dismissal to be considered justified.
• When you have gathered enough evidence to support the dismissal, you can move on to the next step.

Explain to the employee why they are being dismissed, including any relevant laws and regulations.

• Draft a letter that outlines the reasons for dismissal and any relevant laws or regulations that apply
• Provide the employee with any evidence that supports the dismissal, if applicable
• Be sure to be clear and concise when explaining the reasons for dismissal
• Include any details of any attempts to resolve the issue prior to dismissal, if applicable
• Once you have written the letter, double-check it for accuracy and completeness
• When you are satisfied that the letter is complete, you can move on to the next step.

Timing

• Give the employee a timeline of when the dismissal will take effect. This should be at least 30 days from the date of the letter.
• Explain to the employee that they have a right to appeal the decision within the given timeline.
• Determine a date when the employee’s employment will end.
• Let the employee know of any benefits they will receive after their dismissal (for example, severance pay, vacation pay, etc.).
• Decide on any additional benefits the employee will receive, if any (for example, a letter of reference).
• Once all of the above steps are completed, the letter can be sent to the employee.

How you’ll know when you can check this off your list and move on to the next step:
Once you have determined the timeline of the dismissal, outlined any benefits the employee will receive, and have sent the letter to the employee, you can move on to the next step in writing a reasonable employee dismissal letter.

Give the employee a timeline of when the dismissal will take effect.

• Clearly communicate the timeline of when the dismissal will take effect in the letter.
• Provide a specific date and time that the employee should be clear of the premises.
• Include a clear message that the dismissal is effective immediately and that the employee should not return to work.
• You will know when you have completed this step when you have communicated the timeline of the dismissal in the letter.

Severance

• Gather information on the employee’s years of service and the applicable law in the state or country.
• Research the employee’s contract or other agreement to determine if a severance package is required.
• Determine if a severance package should be offered, taking into consideration the employee’s years of service, the applicable law, and any applicable agreement.
• Calculate the severance package and make sure it is legally compliant.
• Include the details of the severance package in the dismissal letter, including the amount that will be paid and when the payments will begin.

Once you have included all of the information about the severance package in the dismissal letter, you can check this step off your list and move on to the next step.

Explain any available severance packages, if applicable.

• Explain the details of the severance package if applicable, including the amount of payment, when the payment will be made, and any other applicable details.
• Be sure to detail any other benefits, such as health insurance coverage, that may be included in the severance package.
• Provide a timeline for when the employee must accept or decline the package, as well as when the employee will need to return any company property.
• Once the employee has been informed of the available severance package, you can check this step off your list and move onto the next step.

References

• Research the employee’s job history and performance, to ensure you’re providing an accurate reference.
• Consult with other team members to gain a full understanding of the employee’s performance.
• Draft a reference letter that objectively outlines the employee’s job history and performance.
• Ensure the letter is free of any negative commentary or personal opinions.
• Double check that the letter accurately reflects the employee’s job history and performance.

You will know you have completed this step when you have written a reference letter that objectively outlines the employee’s job history and performance, and is free of any negative commentary or personal opinions.

Offer to provide a favorable reference, if the employee has performed satisfactorily.

• Make sure to take the employee’s performance into consideration before offering a favorable reference
• Assess the employee’s performance and decide if you can provide a favorable reference
• If the employee has performed satisfactorily, offer to provide a reference. Make sure to be clear about what the reference will cover
• Once the offer to provide a reference has been made, you can check this off your list and move on to the next step, which is professionalism.

Professionalism

• Advise the employee to remain professional throughout the process, including not to disparage the company.
• Remind the employee that any negative comments about the company or its employees are unacceptable.
• Make sure to explain the consequences of any inappropriate behavior.
• Let the employee know that any further breach of professional behavior could lead to further disciplinary action.

When this step is complete, you will have reminded the employee to remain professional throughout the process and explained the consequences of any inappropriate behavior.

Remind the employee to remain professional throughout the process, including not to disparage the company.

• Explain to the employee the importance of professionalism during the dismissal process.
• Emphasize that any negative comments about the company or its employees are not appropriate and will not be tolerated.
• Remind the employee to be respectful throughout the process.
• When the employee is aware of the importance of professionalism, you can check this off your list and move on to the next step.

Benefits

• Explain any benefits the employee is entitled to receive after the termination, such as unused vacation days or severance pay.
• Provide information on when and how the employee will receive these benefits.
• Mention any additional benefits that the employee may be eligible for, such as health insurance or COBRA continuation.
• Include a contact person for further questions regarding benefits.

How you’ll know when you can check this off your list and move on to the next step:

• Once you have included all the necessary information regarding the employee’s benefits, you can move on to the next step in the guide.

Explain any benefits that the employee is entitled to receive after the termination.

• Review the employee’s contract to determine any benefits they may be eligible to receive after the termination
• Contact the employee’s benefits provider to confirm the benefits they are entitled to receive
• Make a list of the benefits the employee is eligible for and the process for accessing them
• Include the list of benefits and the process for accessing them in the dismissal letter
• Once you have included the list of benefits and the process for accessing them in the dismissal letter, you can move on to the next step - Final Paycheck

Final Paycheck

• Provide information on how the employee will receive their final paycheck, such as direct deposit or check in the mail.
• Provide the date when the employee will receive their final paycheck.
• Calculate and inform the employee of any deductions that will be taken out of their final paycheck.
• Provide any applicable information regarding company policies regarding vacation pay, bonuses, and other wages due.
• Check with applicable laws in the area to ensure that the employee’s final paycheck is compliant with all regulations.
• Confirm with the employee that the information provided is accurate.

Once all of the above steps have been completed, you can check this off your list and move on to the next step.

Provide details on when and how the employee will receive their final paycheck.

• Include in the dismissal letter the details on when and how the employee will receive their final paycheck.
• For example, will the employee receive their final paycheck directly or through the mail?
• Will the employee be compensated for unused vacation days or other benefits?
• Make sure to provide the exact amount of the paycheck, as well as any deductions that will be taken out.
• When you have included all the necessary information on the employee’s final paycheck, you can move on to the next step.

Outplacement

• Create an outplacement plan for the employee, including information on the type of job search services and resources that will be available.
• Provide an outline of the job search services and resources that will be available to the employee, such as career counseling, resume writing, job search assistance, and interview preparation.
• Include a timeline for when the employee should expect to receive the services and resources.
• Ensure the employee understands the outplacement plan and the services and resources that will be available to them.
• Once the employee has been provided with the details of the outplacement plan and understands it, you can check this off your list and move on to the next step.

Offer advice and resources to help the employee find new employment.

• Make sure the employee has access to job search websites and resources that can help them find new employment.
• Offer the employee any advice, or contact information of people in the industry who may be able to help them find a new job.
• Provide the employee with a list of potential employers who may be interested in their skills, experience, and qualifications.
• Give the employee access to online job training courses or career counseling services that can be beneficial in their job search.
• Make sure the employee is aware of any benefits or financial assistance they may be eligible for as they look for a new job.

Once you have offered advice and resources to help the employee find new employment, you can check this step off your list and move on to the next step.

Exit Interview

• Schedule an exit interview with the employee and ensure that it is held in a private setting
• Prepare a list of questions that relate to their experience with the company, such as their job satisfaction, any advice they have, and their thoughts on the company
• During the interview, make sure to listen to the employee’s feedback and take notes
• At the end of the interview, thank the employee for their feedback
• Once the interview is finished, you can check this step off your list and move on to the next step.

Ask the employee to participate in an exit interview to provide feedback on their experience with the company.

• Inform the employee that you would like to conduct an exit interview to discuss their experience with the company.
• Explain that the interview is confidential and that the results are used to improve the company’s performance.
• Schedule a time to conduct the exit interview with the employee and provide the necessary documents.
• Make sure to listen carefully to the employee’s feedback and take notes.
• Once the interview is complete, thank the employee for their participation and provide them with a copy of the interview results.

You’ll know that this step is complete when the exit interview is finished and the employee has been provided with a copy of the interview results.

Return of Property

• Ask the employee to return any company property they have on their possession, such as keys, access cards, laptop, or any other company-owned items.
• Have the employee sign a form or document verifying that they have returned all company property.
• Ensure that all company property has been returned and is accounted for.
• Once all company property has been returned, you can check this step off your list and move on to the next step.

Remind the employee to return any company property, including keys and access cards.

• Provide the employee with a list of any company property they have in their possession.
• Request that the employee return the property to a designated person or location.
• Give the employee a deadline for returning the property.
• Follow up with the employee if the property has not been returned by the deadline.
• Once the employee has returned all company property, document that the property was returned.
• Check this off your list and move on to the next step.

Follow-up

• Schedule a follow-up meeting with the employee to ensure all necessary paperwork has been completed.
• Be sure to include a date, time and location for the meeting in the letter.
• Ask the employee to bring any company property they may have in their possession, such as keys or access cards.
• Allow the employee to have a representative present in the meeting if requested.
• Bring a witness with you to the meeting, if desired.
• Once the meeting is completed, you’ll know you can check this step off your list and move on to the next.

Schedule a follow-up meeting to ensure that all necessary paperwork has been completed.

• Schedule a meeting with the employee, their direct supervisor and legal counsel and/or HR representative to review the dismissal letter.
• Ensure that the employee and direct supervisor sign the dismissal letter, if applicable.
• Make sure that any additional paperwork is completed and signed by the employee and/or supervisor.
• Ensure that all legal requirements have been met and that all paperwork is in compliance with the company’s policies.
• Once all paperwork has been completed and signed, the dismissal letter can be issued to the employee.
• You will know that you have completed this step when the follow-up meeting has taken place and the dismissal letter has been issued to the employee.

FAQ:

Q: What are the differences between dismissal letters in the UK, USA and EU?

Asked by Hannah on April 12th 2022.
A: Dismissal letters vary from country to country due to differences in the legal system and cultural norms. In the UK, employee dismissal letters must abide by the Employment Rights Act 1996 and must include reasons for dismissal, details of any appeal process and any notice period. In the USA, dismissal letters must adhere to employment laws in each state, as well as federal labor laws. Similarly, dismissal letters in the EU must adhere to employment laws in each member state, as well as EU labor laws.

Q: How do I write a dismissal letter that adheres to state-specific employment laws?

Asked by Michael on May 7th 2022.
A: Writing a dismissal letter that adheres to state-specific employment laws is no easy task. It is best to consult with an attorney who is familiar with labor laws in your state to ensure that your dismissal letter is compliant with the law. Additionally, it is important to research the specific requirements for termination letters in your state, such as any required language or procedures for filing a complaint with a government agency.

Q: What should I consider when writing a dismissal letter for a SaaS company?

Asked by Emma on August 15th 2022.
A: When writing a dismissal letter for a SaaS company, it is important to consider the unique needs of this business model. For example, you should ensure that the termination letter includes any information required by the company’s Terms of Service or other contractual agreements with clients and employees. Additionally, you should consider any non-disclosure agreements or other legal implications of terminating an employee’s role with the company.

Q: What should I include in an employee dismissal letter?

Asked by Jacob on July 11th 2022.
A: An employee dismissal letter should include clear reasons for termination, including any relevant policies or procedures that were violated by the employee. Additionally, you should ensure that the letter includes details of any appeal process and any notice period required by law or company policy. The letter should also include information regarding severance pay or other benefits that may be due to the employee upon termination of their employment.

Q: How do I write a dismissal letter if my employee has committed a serious breach of contract?

Asked by Joshua on October 20th 2022.
A: If an employee has committed a serious breach of contract, it is important to provide clear and detailed information about this breach in their dismissal letter. This should include specific references to which policies or procedures were violated and how this breach has affected your business operations or reputation. Additionally, you should provide details of any appeal process and notice period that may be due under company policy or applicable law.

Q: How do I write a reasonable employee dismissal letter if I am located outside of the United States?

Asked by Olivia on January 5th 2022.
A: Writing a reasonable employee dismissal letter if you are located outside of the United States will require you to be familiar with labor laws in your country as well as those applicable to your business sector or industry. Additionally, you should research any specific requirements for termination letters in your country, such as any required language or procedures for filing a complaint with a government agency. It is also important to consult with local legal counsel who can help ensure that your termination letter is compliant with applicable local laws and regulations.

Q: How do I handle an employee’s personal belongings when issuing an employee dismissal letter?

Asked by Abigail on February 22nd 2022.
A: When issuing an employee dismissal letter, it is important to handle their personal belongings with respect and care. The best practice is to have an inventory list prepared before issuing the termination letter so that all items can be accounted for and collected promptly after the termination has been finalized. Additionally, it is important to provide clear instructions about how the belongings can be returned and where they must be returned within a specified time frame after termination has been finalized.

Example dispute

Suing a Company for Wrongful Dismissal

• The plaintiff must have a valid claim that their dismissal was wrongful under the applicable employment laws or the terms of their employment contract.
• The plaintiff must provide relevant documents such as the employee dismissal letter, evidence of any discrimination or breach of contract, and testimonies from other employees or witnesses.
• The court may consider evidence of the company’s policies and procedures, as well as the employee’s performance and disciplinary records.
• Settlement may be reached through negotiation or mediation, or the court may determine damages if the plaintiff is successful.
• Damages may include lost wages, emotional distress, and punitive damages.

Templates available (free to use)

Employee Dismissal Letter Due To Ill Health

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