A Termination Letter is an official document issued by an employer to formally notify an employee of the end of their employment contract. It outlines the reason for termination, the effective date, final settlement details, and any post-employment obligations such as notice periods or non-disclosure agreements. A well-structured termination letter ensures legal compliance, clear communication, and smooth offboarding while minimizing disputes. Depending on the circumstances, termination letters can be issued for performance-related dismissals, contract completion, policy violations, or workforce restructuring.

Industries such as manufacturing, retail, logistics, e-commerce, and facility management services (FMS) must follow proper termination protocols to ensure compliance with labor laws, contractual agreements, and company policies. Businesses managing contract employees, apprentices, and outsourced workforce solutions must ensure fair termination practices, proper documentation, and seamless exit procedures to maintain workforce stability. By implementing automated HR documentation, digital compliance tracking, and structured offboarding workflows, companies can reduce legal risks, enhance employer reputation, and ensure smooth workforce transitions.