While most termination letters come with reasons, getting laid off without one is not unusual. While this isn’t encouraged, as it may come with legal consequences, sending a termination letter without cause is not ultimately illegal.
In this article, we will discuss everything you need to know to write a termination letter without cause, highlight the legally acceptable reasons to terminate an employee without cause, and include some samples to help you get started when sending a termination letter to an employee.
What is a Termination Letter without Cause
A “termination letter without cause” is sent to an employee, informing them of the company’s decision to terminate their employment without stating why. While this isn’t common, it isn’t unheard of.
Contrary to popular belief, a termination letter without cause may not affect the employee’s performance. It could be related to other reasons entirely, and if you do not wish to include these reasons in the employee’s termination letter, your next option would be to send a termination letter without cause.
Before sending a termination letter without cause, you must meet with the employee to explain what you intend to do. In this meeting, you can decide whether or not to inform them of your reasons.
Sending a termination letter is an important part of the termination process. This is important as it is a formal notice to the employee and goes into their files and records.
How to Write Dismissal Emails: Samples Included
How to Write a Termination Letter Without Cause
A termination letter can be difficult to write and receive. This is why it’s important that it be written properly, i.e., it must not include any information that could potentially hurt the company, and it must also be written in the right tone.
A poorly worded letter can cause a myriad of problems for your organization, as it could lead to lawsuits or employee complaints. This could cause problems for your companies, as you may have problems attracting and hiring talented individuals.
Using the right tone can prove difficult, so we’ve included this section of this article to provide a step-by-step guide to help you write a termination letter that isn’t tone-deaf and doesn’t include anything that could potentially harm your organization.
Here’s everything you need to know to write a termination letter without cause.
- Outline the necessary steps: When an employee is let go, there are things they need to do: documents to sign, company effects to return, final payments, and a number of things. A well-written letter includes all the practical steps the employee needs to take to complete everything.
The first thing to include is the final date of employment and all other necessary information. Also, include a go-to person for the employee if they have any questions or concerns. This is usually the head or member of HR.
- Be Succinct: If you’re letting an employee go and intend to state all the reasons they’re being let go, you can get away with being detailed. In this case, where they’re being let go without cause, there’s no room for details.
- Be Empathetic and Neutral: Although difficult, you must find the balance and write your letter empathetically and neutrally. Your ability to stay empathetic and neutral lies in how much you belabor your points. This means while you can include that you regret the decision, you do not need to spend too long expressing this, as it can sound dishonest.
While appreciating the employee’s contributions, do not express this too long, as it could also come off as dishonest.
- Do Not Include Details: The entire purpose of a termination without cause is that reason the employee is being let go isn’t stated in the letter. This cannot be belabored enough; the reason an employee is being let go doesn’t need to be included in the letter.
Legally Acceptable Reasons to Be Terminated without Cause
While this information may not be known to the employee or be included in their termination letters, it is important that you be aware of some legally acceptable reasons to fire an employee without cause.
- They were not a good fit: You can terminate an employee’s employment if you feel they’re not a good fit with the rest of the team. For a team to be effective, the members must have great synergy. If an employee doesn’t work well with the rest of the team, it’s okay to terminate their employment.
However, you must ensure there aren’t hidden biases in your decision. If an investigation is carried out and you’re discovered to be retaliatory or discriminatory, it could spell problems for your company. - Medical Reasons: When an employee doesn’t return to work after an extended medical leave, this is grounds to fire them. However, some state laws have protection against extended leaves. So, to remain on the right side of the law, you must consult with an attorney to familiarize yourself with your state’s rule against issues like these.
- Layoff or downsizing: There are a number of reasons for companies to reduce headcounts, from economic and financial to restricting reasons. All of these are not the employee’s fault and, as such, should not be written in their termination letter. Although, in the one-on-one meeting before they let go, you can inform them of this.
Email Example to Reprimand an Employee for Poor Performance
Template One Termination without Cause
[Date] Dear [Name of Employee], Regretfully, as you know from our last meeting, I have to inform you that your employment with [Name of Company] is terminated, effective on [date of effect]. Your final paycheck will be paid on the regularly scheduled payday following your last day of work, and health insurance benefits will continue through [date]. Your rights to continue coverage under COBRA will be sent to you via mail from our administrator. All company effects in your care must be returned to human resources on your final day of employment. Please contact HR at [phone] or [email] with any questions. We are beyond grateful for the time you spent with us and are sad that it has ended. Sincerely, [Name] [Job Title]
Example One Termination Without Cause
Dear Sam, As you have learned from our meeting earlier today, Zema Industries has regretfully decided to terminate your employment. Your termination is effective as of June 19, 2025. As an employee of Zema Industries for over three years, you are guaranteed four weeks’ severance pay. Your paycheck for the month will also be paid on the scheduled date. HR will contact you to discuss benefits, and health coverage continuation, and to calculate accrued PTO. On your last day, please return all office effects in your possession. Please know that you'd also be required to sign a release of claims document on that day. If your contact information has changed, please reach out to HR so you can receive any document or information we may be sending. Thank you for working with us at Zema Industries, your contributions are invaluable and we wish you success in your future endeavors. Sincerely, Jim Ryan, Manager, Zema Industries
Sample Two Termination without Cause
4 February 2025 Dear Jason, Regretfully, as you know from our last meeting, I have to inform you that your employment with BiSoft is terminated, effective February 10, 2025. Your final paycheck will be paid on the regularly scheduled payday following your last day of work, and health insurance benefits will continue through February 29, 2025. Your rights to continue coverage under COBRA will be sent to you via mail from our administrator. All company effects in your care must be returned to human resources on your final day of employment. Please contact HR at 123 456 7890 or [email protected] if you have any questions. We are beyond grateful for the time you spent with us and are sad that it has ended. Sincerely, Simon Todd Senior Manager, BiSoft Technologies
Conclusion
We’ve included everything you need to know when writing a termination letter without cause. The most important thing is to ensure your reasons are within the law, as this saves your company from many legal troubles.
We’ve also included some samples to help you get started when writing your termination letters.
