Employment Contract Cancellation Letter


Employee contract cancellation letter is written by the head of an organization or company either to cancel an employee’s contract or contract with an agency for any service. It is usually written when the employee underperforms by way of not completing the target or being continuously absent from work or any such reason or before joining. In the case of a service, it can be canceled due to the poor quality of service provided. In the letter, you need to mention the date on which the contract ends as well as all the terms and conditions associated with it.

As it is a formal letter, keep the tone formal. Make sure the language used in the letter is easy and simple to understand. Don’t make the letter too long with details, keep it crisp and to the point. Make sure there are no grammatical or spelling errors in the letter. You can also point out the reasons for canceling the contract to the employee or agency and wish them best for the future and apologize for the inconvenience caused.

Sample Letter:


Mansi Mathur

Head of Sales Department

Celly Enterprises






Shalini Sharma


Subject: Employee contract cancellation letter.


Miss Sharma,

With deep regret, I, Mansi Mathur, head of the Sales Department at Celly enterprises, have to bring to your notice that we are canceling the post of sales executive offered to you. We had conducted your interview and sent you the offer letter by post, which you had accepted and sent us back. The company has decided to shift the post of sales executive to the Mumbai branch and has already made the recruitment there. As you had told us that you could only work in Gurgaon, we are left with no option but to cancel your contract. We also tried calling you on the number provided by you in your contact details, but unfortunately, couldn’t reach you.

We are extremely sorry for the inconvenience caused to you. We are sure that you must have made all the preparation for your joining in two days, and were already given a brief tour of the company and your roles and responsibilities. We offer you our apologies for the time that was wasted and the efforts which now stand redundant.

We wish you all the very best for all your future endeavors and hope that you find your dream job soon.


Thanking you

Mansi Mathur

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