Termination letter

A termination letter is the written notice that ends someone's employment, stating the last day, what they will be paid and what happens next.

Also called: letter of termination, dismissal letter, notice of termination letter

What termination letter means

A termination letter is the document you give an employee to tell them their employment is ending. It confirms the decision in writing, states the last day of work, and sets out what the employee will receive: notice or pay in lieu, any severance pay, final wages, vacation pay and benefits.

Statutory termination notice has to be in writing, so for working notice the letter is the notice itself. Even when you pay in lieu, a clear letter prevents confusion and gives both sides a record of what was said and paid.

How it works

Keep it short, factual and calm. Most termination letters cover: the date and the employee's name; a clear statement that the employment is ending; the last day of work, or the last day of working notice; whether the termination is with or without cause; the amount and timing of notice or pay in lieu, and severance pay if it applies; final wages and vacation pay, and when they will be paid; what happens to benefits; when the Record of Employment will be issued; return of company property; and a contact for questions.

For a termination without cause, you do not need to give a reason, and adding one can create arguments. If you are alleging cause, be sure you can prove it, and state the facts briefly. Never put a reason in the letter that is not the real one.

Separate what is owed from what is offered. Statutory amounts must be paid whether or not the employee signs anything. If you are offering more in exchange for a signed release, put that in a separate document or a clearly separate section, with time to consider it and a suggestion to get independent legal advice.

Deliver it in a short private meeting, with a second person present if you can, and give the employee a copy. Check the dates and amounts against your province's rules before the meeting, not after. For a group termination, extra government notices and forms may be needed.

Is it the same in every province?

What goes into a termination letter is much the same across Canada, but the amounts and deadlines in it come from your province's employment standards law, or the Canada Labour Code for federally regulated employers. In Ontario, a mass termination also needs Form 1 filed with the Director and given to each affected employee.

Example: A without-cause letter at a Saint John print shop

Omar runs an 11-person print shop in Saint John, New Brunswick. He is ending the job of a designer who has worked there for 6 years. In New Brunswick, 5 years or more means at least 4 weeks' notice.

His letter says the employment is ending without cause, gives 4 weeks' pay in lieu, says final wages will be paid on the next regular pay day and vacation pay within 21 days of the last day, confirms when health benefits end, and says the ROE will be filed electronically. He gives it to the designer in a private meeting with his office manager present.

Hollis drafts the letter

Hollis drafts province-specific letters, including termination letters with your province's notice and final pay timing, for you to review. It never sends anything on its own.

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Questions about termination letter

What should a termination letter include?

The last day, whether it is with or without cause, notice or pay in lieu, any severance pay, final wages and vacation pay with dates, benefits, the ROE, company property and a contact person.

Do I have to give a reason in a termination letter?

Not for a termination without cause. If you allege cause, state the facts briefly and make sure you can prove them.

Does termination notice have to be in writing?

Yes. Statutory termination notice is written notice, or pay in lieu of it.

Official sources

General information for Canadian employers, not legal advice. Rules differ by province and territory and change over time, so check with your provincial employment standards office (or the federal Labour Program if you are federally regulated) before you rely on it. See employment standards by province.

Checked against official sources on 4 November 2026.