The Formula and Art of Termination Letters

As lawyers who practice for both employers and employees, we know that terminations are rarely pleasant for anyone involved. After all, as the Courts have acknowledged, employment is an essential component of identity, self-worth and emotional well-being.

More recent Court rulings have reminded us that the manner in which employment can be terminated is equally important and impactful to the employee as the employment once was.

With the importance of employment and the impact of termination well established, what can employers do to ensure the termination process is as smooth as possible? One step that may come as a surprise to some employers is the importance of issuing a termination letter that is clearly written and easy to understand. This will help your employee grasp what happens next. Additionally, if they decide to retain a lawyer, a clear letter will likely help reduce the number of back and forths (and therefore fees) your legal counsel incurs merely addressing the details of the termination. 

Here are some key tips and takeaways to consider when drafting a termination letter:

  1. Understand the moment: The chances that the employee will remember the details of the termination delivered during the termination meeting are slim to none. For most employees, this news is shocking, difficult to digest and very overwhelming. Those emotions are typically not conducive to understanding, accepting and remembering the details of what will follow. This makes the termination letter all that more important. 
  2. Understand who is reading the letter: When drafting the letter, keep your audience in mind. You are speaking to your recently terminated employee, not a lawyer. Writing a dense letter or one littered with legal jargon will add further confusion and overwhelm an already very stressed-out individual. Write in plain language and short sentences, don’t be afraid to use spaces, new paragraphs or numbers/bullet points to make it easier to read and understand. In case it wasn’t already obvious, don’t include latin terms in your letter that even lawyers will have to look up. 
  3. Be detailed: At the very least, address each of the employee’s entitlements upon termination, even if the best information you can provide is a promise that the applicable plan provider will follow up. For example, you may not be able to tell your employee what will happen with their pension following termination but you should explain who will be in touch to provide those details. 
  4. Ensure those details comply with applicable legislation: Before drafting your termination letter, make sure you understand what your employee is legally entitled to. For example, ensure you understand the basic entitlements owed to employees under minimum standards legislation like the Employment Standards Act. These entitlements range from monetary entitlements, ongoing vacation pay entitlements post-termination and timelines for payment. 
  5. Post-termination obligations: The termination letter may be your last opportunity to remind the employee of their post-termination obligations. These sorts of obligations can range from requirements regarding confidentiality to promises made in the original employment contract regarding solicitation. Don’t forget to remind the employee to return all company property. 
  6. When in doubt, consult a lawyer: beyond knowing what legal points should be addressed in the termination letter, striking the right tone, and addressing the right points in the termination letter can truly be an art. Termination letters are just some of the bread and butter of our work; chances are getting in touch and chatting will help you set things off on the right foot. Need some assistance? Find us here.
Share the Post:

Related Posts

Blue alarm clock representing timing and Ontario employment termination clauses after Baker

“At Any Time” Gets Its Time: Is There Any Certainty for Ontario Employers After Baker? 

Ontario employers finally have more guidance on employment termination clauses. In Baker v Van Dolder’s Home Team Inc.; Li v Wayfair Canada ULC, the Ontario Court of Appeal upheld clauses using “at any time” and “for any reason.”

But Baker doesn’t give every employment contract a free pass. We unpack what the decision means for employers reviewing termination language today.

Read More »
Hands typing on a keyboard in front of illuminated computer screens, representing virtual workplace communication and online workplace misconduct.

Virtual Harassment: When Workplace Misconduct Happens Online 

Virtual harassment is becoming a growing workplace issue as employee interactions increasingly happen through digital platforms. From group chats and messaging apps to social media activity, online conduct can create real workplace consequences. Learn why employers should update workplace policies, extend conduct expectations beyond the office, and take a proactive approach to investigating and addressing virtual misconduct.

Read More »
December 31, 2026 AODA filing deadline for Ontario employers, displayed beside champagne glasses and gold New Year decorations

The Accessibility Deadline Many Ontario Businesses Don’t Know About: December 31, 2026

Ontario businesses and non-profits with 20 or more employees must file an AODA accessibility compliance report by December 31, 2026. Before certifying compliance, employers should confirm their headcount, complete required training, review accessibility policies and plans, address gaps, and file early. SpringLaw explains the deadline, key requirements, and practical steps Ontario employers should take now, before they file.

Read More »

Contact Us

Thank You For Your Interest. Kindly Complete The Form Below. Our Client Services team will be in touch with further information about our fees and intake process.
[grow-contact-form]