Termination Letter & Release of Claims

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If you need to let an employee go for any reason, you'll want to use a Termination Letter and Release of Claims.

Things don’t always work out with someone. If you need to let someone go, whether it’s with cause (e.g. firing someone because they did something wrong) or without cause (e.g. laying off someone because business is slow), you’ll have to formally tell them. You should also try to get a release of claims, which means they are giving up any rights to sue you because of the termination.

Stay professional when it's time to let someone go.

It’s always uncomfortable when it’s time to let someone go, whether it’s for cause (they did something wrong) or without cause (they didn’t do anything, but it’s time to end the employment for some reason).

Employment law says you need to formally tell the person their job is over. If it’s without cause – for example, business is slow and you need to layoff people – you also will need to give some kind of compensation (generally called “severance”). Your Termination Letter will let you go over these topics professionally with your employee.

Protect your business with a Release of Claims.

It’s also a good idea for employers to get a Release of Claims. This document says your employee is agreeing to give up any claims they have against you because you’ve let them go. You typically use a Release of Claims when you’re letting someone go without cause (they didn’t do anything wrong, the job is just over) and have offered them some kind of termination pay (sometimes also called “severance”). In other words, they’re agreeing not to sue you.

We include a Release of Claims document with your Termination Letter when you’re letting someone go without cause.

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