Termination Letter — In a company or business activity, correspondence and correspondence are important matters. Apart from being an official messenger, it is also valid evidence of information. One of them is a letter of termination of employment. From the name, surely you can understand the meaning of the letter.
Yes, it must be intended to convey information on dismissal. For every employee dismissal, it is appropriate for the company to provide this letter. As authentic evidence that will be held by employees.
Just like when you started, you got a statement that you were accepted and signed a work agreement. Like when he was laid off. It is also necessary to include a letter.
So, in this article, we will try to discuss the matters of a termination letter. Like the elements in it, to how to make it. So that you can get complete information from this article, read it until it is finished.
Various Reasons Behind a Letter of Dismissal
Termination of work or what is often known as a layoff is certainly not something every employee wants to hear or experience. It would be terrible if it had to be suddenly dismissed in the midst of increasing economic needs. But don’t worry, the company will never unilaterally terminate its employees. Because this has been clearly regulated in state law.
Be aware that layoffs do not necessarily mean dismissal. Instead, all employment terminations, which include pensions and employees resign voluntarily. Even though it is not a fun event, there are times when employee layoffs must be taken as a way to save the company.
In addition to the reasons mentioned above, there are also several other reasons for the issuance of a termination letter, including the following:
One of the most common reasons for companies to terminate employees is for cost reduction. This is often done if the company does not have enough profit to cover all expenses.
When a company decides to terminate employees, the company must also take into account all the correct processes and methods. This is intended so that it does not lead to a lawsuit.
Relocation of a company’s operations to another region or country could also be a reason for a company to lay off its employees and issue a termination letter. Instead of having to move employees, companies definitely prefer to find new employees at the new place.
Sometimes, companies stop work when they feel the need to remove several positions that are considered excessive in the interests of more efficient operations. Excessive means that there are several positions with similar functions and roles that are considered less efficient.
This one reason is also often done if the company has experienced a change in direction or management so that it feels the need to redefine the various roles in it.
Technology advances increasingly sophisticated, many employees have to be laid off and given a termination letter because they have been replaced by robots. As we know, one robot can replace the roles of two to three employees at once. Of course, this puts pressure on the budget owned by the company.
The Company is Purchased or Merges with Another Company
The reason a company has terminated its employees is when the company was purchased or decided to join another company. This is because these changes can lead to changes in the top leadership as well as the direction of the company itself. This is what then affects management changes to the reduction of employees.
The Company Closes or is Declared Bankrupt
A company can be declared closed or bankrupt if it has suffered continuous losses during the last two years. This is evidenced by reports or audits from public accountants. In addition, companies can give out termination letter in case of force majeure, such as a disaster or something bad that cannot be avoided.
If the company suffers such losses, then employees who experience termination of employment are entitled to one time severance pay, one time service award, and replacement money.
Making a Job Termination Letter
We will continue to the next discussion, which is about how to make a termination letter. There are several points that you need to prepare or think about when making them.
Like official letters in general, employment termination letters also contain the same elements.
Such as letterhead, which provides information about the name of the company or institution and its address.
Its position is to provide an explanation as to who is the party responsible for issuing this letter. Then there is the letter number, which is adjusted to the secretarial policy of a company. In this case, usually it will include the serial number of the letter, letter code such as SP for notification, month when the letter was issued, and year of the letter.
Next is the subject, or type of letter, such as a permit, for example. Then the termination letter destination. Make sure there is a full name, position or profession and address. Enter the core part of the letter, namely the message or notification of termination of employment. Make sure the language used is good, correct, easy to understand and not wordy.
Also fill in the content section with a statement of the decision to be dismissed and if possible there is a reason. Lastly is the closing paragraph, accompanied by greetings. Usually there will be a signature or clear name of the person in charge of the letter.
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Performing and Providing a Termination of Employment Letter
In the last section, we will discuss the matter of ethics or procedures for issuing a termination letter. You need to pay attention to several points so that you can break a work relationship well.
Don’t Be Sudden
The first thing you should pay attention to when you are about to terminate or terminate a work relationship is not to be sudden. If the dismissal was made by mistake, you can issue the first and second warning letters first, in accordance with company regulations. This can be a warning and material for employee self-improvement. Remember, dismissal or dismissal is the last step.
Then, do well. Because after all, whether you are a worker or an employer, this relationship process starts in a good way. For that, it ends well too. You should discuss this decision in person. State the reasons, then tell the decision along with the letter. You can say it via email. However, it is better if you meet in person than just a termination letter.
Maintain Good Relationship After Termination
Whether you are a worker or an entrepreneur, perhaps in this context, you are a human resource (HR), it is fitting to maintain good relations after the end of this working relationship. Because no one knows if next time you will work together again. There is also no reason to be hostile or break other relationships outside of work.
That is more or less the explanation regarding the termination letter, along with several points related to termination of employment. For HR, you can continue to assess the performance of your workers and monitor them well.
If you feel that there are workers who do not comply with the provisions, or the condition of the company is not possible to maintain their job, then it is not wrong if you provide this termination letter. The important thing is to stay within the rules and for the greater good.