Termination Letter Without Cause – Writing Tips

A termination letter without cause is issued when a company, employer or organisation wants to terminate an employee without the employee being at any fault. Usually a termination letter without cause is issued when the company or organisation wants to reduce its number of employees or workforce. Due to financial losses faced and difficulty in paying all the staff or employees, or a change or shift in the nature of the business operations.

How to write a Termination Letter without cause

Termination Letter Without Cause

To draft a termination letter without cause, there are important things which have to be taken into consideration. If proper consideration is not given, especially with respect to legal factors. A termination letter could be deemed unlawful in a court of law. If a suit is filed against the company by the employee or employees being terminated.

  • Like any termination letter, a termination letter without cause should also state clearly in the beginning that the employee is being terminated from the job.
  • The letter should clearly mention that the termination is a ‘without cause termination’.
  • Although, the letter would be about a termination letter without cause. The company or employer should still try and briefly explain the circumstances or factors which led to such a decision.
  • Often the employment contract between employer and employee states that the employer can terminate the employee without a cause. And is such cases, the contract also states what compensations would be provided to the employee.
  • Proper legal guidelines about terminating an employee should be followed. And for that, all legal provisions that apply to the company or organisation. As well as the contractual agreements in the employment contract, plus the human resource policies of the company or organisation must be abided to.
  • For the fulfilment of the above points, legal advice from company secretary. As well as lawyers and legal professionals should be taken into consideration.
  • After stating in the letter that the employee is being terminated, and terminated without a cause. Details about whether the employee is being given a notice period or not, when the employee would get the last pay cheque and other compensations should be communicated.
  • The person drafting a termination letter without cause must understand how difficult it must be for the employee to be terminated without a cause. Thus he or she must be respectful, polite yet very clear and precise about the communication through the letter.
  • Termination of an employee, especially one without a cause, is a sensitive matter. The employee should be given clear opportunity to seek clarifications about what led to such decision making.

Sample Termination Letter Without Cause

From,
BNV Pvt Ltd,
34-F, Banjara Hills,
Hyderabad 500034

9 July, 2022

To,
Jiten Iyer,
45/C, Rangareddy,
Secunderabad 500039

Subject : Termination letter without cause

Dear Jiten,

It is my duty to inform you that you are being terminated from BNV Pvt Ltd, from the designation of Operations Manager held in the Ganesh Nagar factory of the company.

As you know, our company is shifting its operations to new technology, as we are purchasing new machines from abroad, our workforce size is now being reduced. Before this technology shift, we had 5 Operations Managers in the Ganesh Nagar factory of the company. But after this new technology, we would be needing only 2 managers in the factory, who are experts in using the new technology.

You are being given a notice period till the end of this month, and 31 July would be your last day in this job. Your final salary would be calculated on 1 August, and you would receive the payment by 5 August. Details about other outstanding payments of your gratuity, and public provident fund shall be communicated to you the accounts department after 1 August, and payments will be cleared by 12 August.

Hope you understand that this decision is being taken in the best interest of BNV Pvt Ltd. I would like to extend thankfulness to you on behalf of the company for being a part of our projects thus far. Would like to wish you all the best for your future. May you have a successful career ahead. Please get in contact with human resource department representative at the Ganesh Nagar factory, to seek any further clarifications.

Yours Sincerely,

Kunal Thumma,

HR Head, BNV Pvt Ltd

Email for termination without cause

Subject: Termination letter without cause

From: hrperson@company.org

To: employee@company.org

CC: hod@company.org

Dear Harpreet,

You are receiving this email to be informed that you are being terminated from the role of Store Supervisor of the Lake Town store of JYK Pvt Ltd. This decision is final and has been taken after considering several factors.

You must be aware that our company is facing financial crisis since several months due to really low sales. Our company mostly deals in garments business through 3 offline stores in Kolkata, although we did sell online as well. However, our demand and profit margins have gone down in the offline market drastically in the last one year. We are now shifting completely to the online mode, and shutting down our offline stores from 1 August, 2022.

You too are being given notice period till 31 July, 2022. Last month’s salary will be released after 3 August, and will be credited to your account by maximum of 7 August. You will be communicated through email by the accounts department of the company too shortly, and details about your other dues will be discussed therein.

I would like to thank you for being a reliable employee of JYK Pvt Ltd, and I would like to wish you the best for your successful career and future ahead. Please feel free to reply to this email if you have any queries or want to seek any further clarifications.

Yours Sincerely,

Mahesh Guha,

HR Head, JYK Pvt Ltd

Conclusion

A termination letter without cause is most likely to face legal consequences if all guidelines are not properly followed. Other than legal consequences, it could also translate into severe loss of goodwill for the company. Therefore, a without cause termination decision must be taken very pragmatically considering several factors. And the termination letter should be drafted very carefully following a respectful tone of communication, and abiding to laws and provisions applicable on case to case basis.

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