Employment Contract Termination Letter


Employee contract termination letter is written by the head of an organization or company to cancel an employee’s contract. 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. 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 like if the employee is required to clear his or her dues and if they need to complete the project they have in hand.

As it is a formal letter, keep the tone of the letter formal and to the point. Make sure the letter is not too harsh and too long. Keep the letter crisp and to the point. Make sure there are no grammatical or spelling errors in the letter.  You can let the employee know where he or she failed and the exact reason for cancellation.

Sample Letter:


Mansi Mathur

Sales head

Celly Enterprises





Jyoti Sharma

Sales Executive

Celly Enterprises


Subject: Employee contract termination letter.

Miss Sharma,

I, Mansi Mathur, head of sales department at the Celly Enterprises, would bring to your notice that your contract with our company has been terminated. According to the agreement, the company had to give you a week’s notice and thus from next week you are no longer required to cone to the Gurgaon branch.

As per the agreement, you were required to complete four weeks of sale target but now it has been six weeks, and you have shown no progress or improvement. Despite repeated warnings, you have not reverted or given us any reason for your lack of performance. Also, for the last five days, you have not even shown up at the office nor have you given any letter of absence.

As a result of this reckless behavior and underperformance, we regretfully are terminating your contract. You can collect your remaining salary from the H.R department and please hand over the files and all the documents there. Your work will be taken up by your teammates.

We wish that you get a chance to improve your weakness and wish you all the very best for all your future endeavors.


Mansi Mathur

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