Common Types of Termination Letters

Not all termination letters are the same. Different scenarios require different tones, levels of detail, and structures:

• Layoff letters (without cause): These are used during reductions in force, position eliminations, or organizational restructuring. The tone should be empathetic and business-focused, clearly stating that the decision is unrelated to the employee’s performance.

• Termination for cause: Used in cases of misconduct, violation of company policy, or significant performance issues. These letters must be precise, factual, and often reference specific policies violated. Because of their legal sensitivity, they should always be reviewed by counsel before delivery.

• Separation letter with severance: When an employer is offering financial or benefits-related considerations, this type of letter outlines the severance package, benefits continuation, and instructions for reviewing or signing a severance agreement.

• Short-form termination notice: A brief, highly formal statement that confirms the end date of employment and key details, usually used in situations where more extensive communication has already occurred in person.

Key takeaway: There’s no single template that fits every scenario—choosing the correct type of termination letter is critical to reducing risk and ensuring the message lands appropriately.

What to Include in a Termination or Layoff Letter

At a minimum, a termination letter should include the employee’s identifying details (name, role, and department), the effective end date of employment, and the reason for termination written in neutral phrasing (e.g., “position eliminated” or “restructuring”).

If applicable, it should clearly spell out severance pay and benefits continuation details, along with instructions for the return of company property.

Support resources such as outplacement services or guidance on filing for unemployment should also be mentioned to demonstrate goodwill and reduce uncertainty.

Finally, the letter should include contact information for HR or another designated company representative so employees know who to reach out to with questions.

Key takeaway: Striking the right balance is crucial. Too much detail can create unnecessary legal exposure, while too little detail can cause confusion and frustration for employees.

Why Messaging Risk Scanners Are Game-Changers

Even when individual termination letters are carefully written, broader communications around layoffs often create risk. Emails, memos, and manager talking points are frequently where problems emerge.

Messaging risk scanners—tools that review written communications for tone and red-flag phrasing—can help prevent missteps that lead to legal exposure or reputational damage.

Risk scanners identify problematic language, such as overly casual remarks (“We’re cutting some dead weight”), legally risky promises (“You’ll definitely find a better job soon”), or vague, ambiguous messaging (“This may or may not affect your role”).

They then suggest safer alternatives, such as neutral phrasing (“Your position has been eliminated as part of organizational restructuring”), supportive messaging (“You will have access to outplacement services to assist in your transition”), and clear language about dates and logistics.

Many scanners also provide a Tone Score that measures professionalism, empathy, and clarity—helping HR teams calibrate language for sensitive contexts.

Key takeaway: Risk scanning reduces legal exposure and reputational fallout by ensuring all messaging—letters, emails, and announcements—strikes the right balance of clarity and compassion.

Termination for Cause vs. Without Cause: Messaging Differences

Distinguishing between cause-based and non-cause terminations is one of the most important elements of offboarding communication.

• Without cause (layoff or position elimination): These letters focus exclusively on business reasons such as restructuring or budget reductions. They must avoid referencing performance or conduct in any way, as doing so may appear contradictory and create legal vulnerabilities. The tone is empathetic, emphasizing external factors rather than the employee’s personal shortcomings.

• For cause: These letters must be factual, specific, and defensible, often referencing the exact policies or standards violated. They are inherently higher risk, which is why review by legal counsel is strongly recommended before delivery.

Key takeaway: Never blur the line between these categories. A layoff letter should not mention performance, and a for-cause letter should be backed by clear documentation.

Announcing Layoffs: Email, Memo, or Town Hall?

The termination letter is for individual employees, but broader communications are equally important for maintaining trust and morale across the organization. HR leaders typically rely on multiple channels:

• Email or memo: Provides consistent, written communication to impacted employees, ensuring clarity and documentation.

• Town hall or video call: Addresses remaining employees, offering transparency and leadership visibility. This format also allows employees to ask questions directly and helps reduce rumors or misinformation.

• Manager talking points: Direct supervisors are often the first line of communication. Providing them with structured talking points ensures they can deliver consistent, empathetic messages without improvising.

Using a messaging risk scanner on these communications can help flag problematic phrasing that might otherwise cause panic, confusion, or reputational harm.

Key takeaway: Consistency across all communication channels is just as important as the termination letters themselves. Misaligned messaging can lead to confusion, mistrust, or even litigation.

Role of Outplacement in Termination Letters

Including outplacement details in the termination letter shows care and helps employees take immediate steps forward. At TurboTransitions, for example, employees receive access to PruE AI career coaching, plus live coaching sessions and job networking. 

Adding this information in the letter (or attached FAQs) makes support tangible, not just promised.

Key takeaway: A few sentences about outplacement can ease anxiety and reduce negative reactions on layoff day.