Termination Letter for Cause – Sample with Example

Termination letters can be of two types based on the type of termination. - ' termination letter for cause' or 'termination letter without cause'. In this article, we shall understand how to write a 'for cause termination letter'. 

If a company or any other organisation or employer has to terminate an employee from his or her job. The employer needs to issue a formal termination letter to the employee. This letter would serve as a formal document of the termination.

A termination letter for cause is issued when the employee is at fault with regard to breach of an organizational or workplace policy. Or due to failure in achieving any of the objectives of employment as per contract of employment between employer and employee, or any other reason where the employer is justified to terminate an employee from his or her job.

How to write a Termination letter for cause

Termination Letter for Cause

A termination letter being an important legal document. Due care must be exercised while composing the letter.

While writing a termination letter for cause, following things has to be taken care of:

  • The letter must clearly state at the beginning that the employee is being terminated from the company or organisation.
  • Cause of termination must be stated clearly and precisely immediately after the termination has been stated.
  • The cause of termination must be supported with facts and evidence. It led to the decision to terminate the employee from the job.
  • The termination letter should mention about the prior warnings that were given to the employee before coming to the final decision of terminating the employee.
  • Human resource policies of the company or organisation along with legal guidelines with regards to termination of an employee must be followed and appropriately abided to.
  • By failing to abide to legal guidelines and human resource policies. The company or employer organisation could possibly land in legal trouble if the employee sues them. If it is proved that laws and procedures have been breached.
  • However, after proper guidelines and process of termination has been followed, the termination would be valid, and the termination letter shall clearly state the date from which the termination would come into effect.
  • If a notice period is being given to the employee. The length of such notice period and precise duties of the employee during the notice period should also be communicated in the letter.
  • The termination letter must also communicate how the employee can seek any clarification about anything related to the termination from the employer, or from the human resource department of the company or organisation.
  • The details about when the final pay cheque and other dues will be cleared, shall also form part of the termination letter.

Sample Termination Letter for Cause

From,
AGR Pvt Ltd,
42-H, Sector 137, Noida 201305

5 July, 2022

To,
Kushal Mehta,
34-C, Sector 45,

Noida 201303

Subject: Termination letter for cause

Dear Kushal,

This letter is to inform you that you are being terminated from the post of Web Designer held in AGR Pvt Ltd, due to breach of company's Human Resource Policies.

It was found out that you had an affair with another employee in the same office, and was reported to the human resource department, previous month. You were sent a letter seeking clarification after that within a week. You were supposed to reply to that by the end of June, but we didn't receive any response from you.

Thereafter we had to seek witness from other employees in our office, including your manager and colleagues in your department. It was found that 5 people gave witness that they had noticed circumstances. That indicated you did have an affair in the same department as yours. As per human resource policies of our company, which were a part of your employment contract and you had signed to abide to during recruitment. It was clearly stated that affairs in the office a strictly prohibited. It was also mentioned in the contract that if you are found guilty of breach of any of the terms, you could be terminated.

You are being given a notice period for the remainder of the month of July. We request you to complete the projects assigned to you by this month, and hand them over to your manager. Your final pay cheque shall be dispersed in the first week of August, and you can communicate with the accounts department to settle your other dues.

We would like to wish you all the best for your career after leaving AGR Pvt Ltd, and would also like to thank you for being a part our company. This decision was a difficult one for the company, and we regret letting go of a hard working employee like you but unfortunately we had no other option. At AGR Pvt Ltd. We give utmost priority to abiding our company policies.

If you have any questions or want to seek any further clarifications. Please contact me at the Human Resource department.

Yours Sincerely,

Daksh Yadav,
HR Manager, AGR Pvt Ltd

Sample Termination Email for Cause

Subject: Termination letter for cause

From: hrperson@company.org

To: employee@company.org

CC: hod@company.org

Dear Jaydip,

I regret to inform you through this email that you are being terminated from the post of Supply Chain Manager in GHQ Pvt Ltd.

As you know, your complaint had been reported to the human resource department by your senior manager who found you sleeping on your desk during office hours. A formal warning letter also was issued to you by the human resource department. Alongside verbal warnings given by your senior. In spite of the warnings, you were again found sleeping on your desk during office hours today. And we are left with no option, but to terminate you from the job due to your failure in meeting the standards of work ethics the company expects from you.

You are being terminated from the job with immediate effect. Today, 5 July 2022 was the last day at your job, and from tomorrow your employment contract shall stand terminated. Your pay cheque for June 2022 must had already been dispersed on the 3rd of July. You can contact the accounts department of the company after receiving this email to settle your remaining dues.

I would want to extend my best wishes to you for your future, and for your career ahead. This was a tough decision that had to be taken in the best interest of the GHQ Pvt Ltd, and we hope you would understand our position.

Please reply to this email, or contact me at the human resource desk in the office, if you want to have any further clarifications.

Yours Sincerely,

Kedar Gupta,

HR Manager, GHQ Pvt Ltd

Conclusion

A termination letter for cause shall precisely state the cause due to which an employee is being terminated. However, the letter should be drafted in a respectful and formal language. Proper details about the warnings that were given before finally coming to the decision of terminating the employee, or details about the enquiry undertaken to prove the employee had breached a company or organisational policy that led to his or her termination shall be communicated in a concise manner the termination letter.

Lastly, details about how and when the employee’s overdue salary and other payments would be released should be communicated in the termination letter. Along with details about how he or she could seek any further clarification about the cause or circumstances of the termination.

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