Dismissal Letter Template – Sample & Examples

A dismissal letter is a formal written communication issued, about the discontinuance of employment, made to an employee by a company or his or her employer.

A dismissal letter can be handed to an employee on several grounds such as the poor performance of the employee on the job, or when an employee is found guilty of professional or personal misconduct which has been reported to the Human Resource Department and charges have been proved against him or her.

Dismissal Letter

However, sometimes a dismissal letter is also issued to some employees without the employees’ fault, when the employer is suffering losses in business and needs to lay off some employees, or when the employer wants to shut down his business.

How to write a Dismissal letter

A dismissal letter is an important legal document, which may be required to be presented ahead of a court of law in case of any possible disputes in the future. Hence, a dismissal letter should be drafted carefully keeping in mind all legal and regulatory provisions applicable to the employer organization, including its own internal Human Resource policies.

While writing a dismissal letter, several things must be taken care of, which include the following:

  • The real reason for dismissal must be communicated politely and formally.
  • All facts about the circumstances leading to such dismissal must be communicated. This shall include the facts discovered upon inquiry, in the case of an employee who had been reported and found guilty of misconduct.
  • In case of a dismissal, where the employee is not at fault, but the employer has to lay off its employees, the facts of the situation which caused the decision to lay off employees must be communicated in the dismissal letter.
  • The proper legal procedure for terminating an employment contract must be followed after consulting with human resource professionals, company secretaries, and lawyers. Otherwise, there are chances of leading to a weak case for the employer in case legal disputes are raised by employees.
  • If an employee is being laid off because of losses and challenges in business, and if the organization is not being shut down, options where possible must be given to the employees such as offering a lower job position or salary.
  • It must be made clear in the dismissal letter if the employee is being given a notice period and the extent of it. In case, no notice period is being provided, it must be communicated clearly to the employee along with reasons for the same.
  • Details about the final date of termination of employment contract, along with details about the date of final calculation and payment of outstanding and overdue salary must form part of the dismissal letter.
  • Details including when and how other payments will be released such as dismissal compensation, if any, or any other statutory payments such as gratuity, etc shall also be properly communicated along with the dismissal letter.
  • The dismissal letter must not be incomplete with its communication and should not be impolite or disrespectful.
  • Dismissal of employees is tough for both employees as well as the employers, it is a sensitive matter that must be dealt with with honesty, practicality, and pragmatism.
  • The dismissal letter should also provide a reasonable timeframe within which the employee can ask for further clarification from the employer.

Sample Employee Dismissal Letter

From,
DG Pvt Ltd
202-A, Astha Kunj Road,
Delhi 110019

30 June, 2022

To
Rahul Jain,
45/6 Mayur Vihar,
Delhi 110091

Subject: Employee Dismissal Letter

Dear Rahul,

I regret to inform you that you are being dispersed from your designation of Sales Executive in DG Pvt Ltd, due to losses suffered and cash crunch issues being face by the company.

As you know our company deals in the FMCG industry, and mostly sells edible products like groceries, snacks, etc through retail outlets at several locations in Delhi. However, for several months our company has been facing drop in sales and profitability, as online players continue becoming popular in the market. The company is facing a severe cash crunch and unable to continue bearing the employee cost of 286 employees. The company’s board of directors is considering options revamp the company’s business and profitability prospects. To explore new business opportunities and prospects for the company, the company first needs to deal with the situation of cash crunch. Hence this decision had to be taken to lay off 75 employees from all departments of the company.

Your employment contract shall stand terminated from 1 July 2022, and your overdue salary of May and June 2022 shall be credited in your account by 10 July. I request you to collect your belongings from your desk in the office by 3 July 2022.

This was a tough decision for the company but it had to be taken in this hour of crisis. I would like to wish you all the best for your career ahead on behalf of our company, and also thank you for being a part of DG Pvt Ltd. You can contact me at the HR Desk of our company’s office if you have any questions.

Yours Sincerely,

Rajiv Deol,
HR Head, DG Pvt Ltd

Sample Dismissal Email

Subject: Dismissal of Employee

From: hrperson@company.org

To: employee@company.org

CC: hod@company.org

Dear Anil,

This email is being sent to you to communicate that you are being dismissed from the post of Relationship Manager in FHJ Pvt Ltd due to consistently poor performance at your job.

Over the last 8 months, in spite of warnings that were given to you, your performance at job has been consistently poor as you have failed to convert 25 out of 43 potential clients into customers of the company. Your performance had been reviewed by the HR department and this decision has been taken after interviewing and finding personnel better fit for this position in the company.

You are being given a notice period of 15 days, and your employment contract shall stand terminated on 16 July 2022. Your final salary dues will be calculated after 15 July, and the amount shall be credited in your account by 25 July. Meanwhile, during the notice period, the company requests you to cooperate in making the new personnel selected for this post acquainted with the company and make them aware of the pending projects he shall take over from you.

I hope you would understand that this decision had to be taken in the best interest of the company’s future. Thank you for being a part of FHJ Pvt Ltd and on behalf of the company I would like to say you all the best and may you be successful in your career ahead. Please feel free to reply to this email if you have any queries.

Yours sincerely,

Neel Shah,

HR Head, FHJ Pvt Ltd

Conclusion

A dismissal letter should be straight, to the point, honest and transparent. All necessary points should be covered, and the drafting of the dismissal letter should be done with due care. The reason and effective date of employment termination should be precisely and clearly communicated, along with the procedure of clearing overdue salary and other payments. The employees should be given the opportunity to ask for any further clarification about their dismissal.

It is extremely important to know that the employer must give a proper reason for the dismissal of an employee, otherwise, the dismissal might be deemed unlawful if there is any dispute that reaches a court of law. Hence, it is extremely crucial to follow legal guidelines including applicable laws and regulations, as well as internal human resource policies of the organisation.

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