Termination letter generator with the statutory sums worked out
This free termination letter generator drafts the employer’s letter ending someone’s employment — for redundancy or retrenchment, performance after a review, misconduct after an inquiry, an unconfirmed probation, or under the contract. It states the reason, the last day and how notice is handled (worked, paid in lieu, or not due), lists the final settlement item by item and asks for company property back.
The arithmetic is done for you: India’s retrenchment compensation under the Industrial Relations Code, 2020, the two-working-day settlement date, the UK’s statutory minimum notice and statutory redundancy pay, and the US release-consideration periods for employees aged 40 and over. The letter refuses to download when the notice is shorter than the law requires.
Take legal advice before sending a termination letter. This is a template, not legal advice, and it cannot make an unfair process fair. Nothing you enter leaves your browser.
How to use the Termination Letter Generator
- Add the letterhead and signatory, and the employee’s name, designation, joining date and, for the UK or US, date of birth.
- Choose the reason and list the facts behind it — the business reason for redundancy, or the reviews, charges and findings.
- Choose how notice is handled, the notice period, the last day and the monthly wages; for Indian retrenchment, confirm worker status and the size of the establishment.
- Tick the settlement items, list company property and, where appropriate, offer an appeal.
- Read the figures in the box under the notice section, check the preview, then download the PDF or Word file.
Termination Letter Generator features
Retrenchment compensation
15 days’ average pay for every completed year, with a part year over six months counted as a year, at monthly wages ÷ 26 (or ÷ 30).
Notice checked against the law
One month (three for 300+ worker establishments) in India, the statutory minimum by service in the UK.
UK redundancy pay
Age bands for each of the last 20 years of service and the £751 weekly cap.
US separation details
At-will line, final paycheck date, COBRA and OWBPA periods for a severance release.
Bulk for a redundancy batch
One letter per CSV row with each person’s own compensation and notice pay.
India: retrenchment under the Industrial Relations Code (as of October 2026)
These rules protect “workers”; managerial and administrative staff, and supervisors earning over ₹18,000 a month, fall outside the definition, so their contract governs. Final wages are due within two working days (Code on Wages, 2019, s.17(2)) and gratuity within 30 days. In the sample, ₹52,000 a month ÷ 26 is ₹2,000 a day; 7 years and 7 months counts as 8 years, so compensation is 8 × 15 × ₹2,000 = ₹2,40,000, with ₹52,000 in lieu of notice, dues by 3 November 2026 and ₹30,000 to the re-skilling fund. Check gratuity with the gratuity calculator.
| Rule | What it requires |
|---|---|
| Section 70(a) | One month’s written notice with reasons, or wages for the notice period in lieu, for a worker with one year’s continuous service |
| Section 70(b) | Compensation of 15 days’ average pay for every completed year of service or part over six months |
| Section 70(c) | Notice to the appropriate Government (Form XIII under the Industrial Relations (Central) Rules, 2026) |
| Sections 71–72 | Last come, first go in the category; a chance to apply if posts are filled within a year |
| Sections 77–79 | Establishments with 300 or more workers: three months’ notice and prior government permission, deemed granted after 60 days without a decision |
| Section 83 | 15 days’ wages last drawn to the worker re-skilling fund, credited to the worker within 45 days |
United Kingdom and United States
- UK: statutory minimum notice is one week after a month’s service, then one week per complete year up to 12 (Employment Rights Act 1996, s.86). Statutory redundancy pay needs two years’ service; from 6 April 2026 the weekly pay cap is £751 (£22,530 maximum). The unfair dismissal qualifying period is two years, six months from 1 January 2027; follow the Acas Code for conduct and capability dismissals.
- UK collective redundancies: 20 or more at one establishment within 90 days need 30 days’ consultation (45 for 100 or more), and the maximum protective award for failing to consult has been 180 days’ pay since 6 April 2026.
- US: employment is at will in every state except Montana after probation, but a firing still cannot be discriminatory or retaliatory. The WARN Act requires 60 days’ notice of mass layoffs at employers with 100 or more employees; final pay deadlines are state law; a release of age claims from someone 40 or over must allow 21 days (45 in a group layoff) to consider it and 7 days to revoke.
Common mistakes
- Sending the letter before the process is finished — the warning, inquiry or consultation must come first; see the warning letter generator.
- Paying less than the statutory notice or compensation because the contract says less.
- Vague reasons: state the facts once, accurately, and avoid opinions.
Termination Letter Generator FAQ
How do I write a termination letter?
State the decision and the reason, the last day of employment and how notice is handled, what the final settlement includes and when it is paid, what property to return, and any right of appeal. This termination letter generator writes those parts and calculates the statutory amounts.
How is retrenchment compensation calculated in India?
Fifteen days’ average pay for every completed year of continuous service, where a part of a year over six months counts as a year. One day’s pay is usually monthly wages ÷ 26, so ₹52,000 a month for 7 years and 7 months gives 8 × 15 × ₹2,000 = ₹2,40,000.
What is pay in lieu of notice?
Wages for the notice period paid instead of asking the employee to work it, so employment ends straight away. One month at ₹52,000 is ₹52,000; in the UK, weeks are priced at monthly pay × 12 ÷ 52.
Can I terminate without notice?
Only for serious misconduct proved after a fair process, or in US at-will employment. The tool refuses a no-notice letter for other reasons.
How much statutory redundancy pay is due in the UK?
Half a week’s pay for each year under 22, one week for each year at 22–40 and one and a half from 41, for up to 20 years, with weekly pay capped at £751.
Is this legal advice?
No. It is a template that does the arithmetic. Take legal advice before ending anyone’s employment.