Termination Letter Format (With Cause)
Record the termination of an employee for a stated cause after due process, with the last working day and how final dues will be settled.
What it is
A termination letter ends the employment and records why. Where the cause is misconduct, the employer should first issue a show-cause notice, give the employee a fair chance to respond and, for serious charges, hold an inquiry under its standing orders or service rules. The letter then refers to that process, states the effective date and deals with notice pay, final dues, return of company property and continuing confidentiality.
When it is used
- Proven misconduct after a show-cause notice and inquiry.
- Continued poor performance after documented warnings or an improvement plan.
- Breach of the employment contract or company policy.
What the template covers
- Employee details and designation
- Reason for termination with a summary of the facts
- Reference to earlier warnings, show-cause notices and the inquiry
- Effective date and last working day
- Notice period or pay in lieu
- Full and final settlement, return of property, confidentiality
Details you will need
The generator asks for the following. Fields marked with an asterisk in the form are required; the rest can be left blank and filled in later in Word.
Letter
Letter Date
Company
Company Name; Company Address; Signatory Name; Signatory Title
Employee
Employee Name; Employee ID; Designation; Employee Address
Reason for Termination
Reason; Detailed Reason; Prior warnings / show-cause notices issued?
Effect
Last Working Day; Notice Pay / In-lieu
Stamp duty, registration and filing
The Industrial Relations Code, 2020 (in force from 21 November 2025) and the State Shops and Establishments Act apply in addition to the employment contract. For a "worker", termination for reasons other than proven misconduct can amount to retrenchment, which needs notice and retrenchment compensation. Principles of natural justice apply to dismissal for misconduct. Wages due on termination are payable within two working days under the Code on Wages, 2019. Take advice before issuing the letter where the facts are disputed.
Generate the Termination Letter (with cause)
Fill in the form and download the draft as a Word file. It is a general template, not legal or professional advice; have it reviewed for your facts before you sign or rely on it.
Need this checked against your facts, or the registration or filing that follows (e.g. PF, ESI, TDS on salary)? Contact SKAG and Associates
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Frequently asked questions
Can an employee be terminated without notice?
For proven serious misconduct, many service rules allow dismissal without notice after an inquiry. In other cases the notice period in the contract, or pay in lieu, applies.
Is a show-cause notice mandatory before termination?
Where the termination is for misconduct, giving the employee a chance to explain is part of natural justice and is expected by courts and labour authorities.
When must final dues be paid after termination?
Wages due on removal or dismissal are payable within two working days under the Code on Wages, 2019. Gratuity, where eligible, follows the Code on Social Security, 2020.
This page gives general information for reference only. Laws, stamp duty rates and filing requirements change and differ between States, so confirm the current position for your case. Related: all document templates · free tax calculators · compliance calendar and guides.