Step by Step in Writing a Termination Agreement

In a business, an employer wants to make sure that his or her employees know that the company may terminate them if they do something which harms the company or if they fail to meet the company’s standards & expectations continuously. Here, the company should provide a termination agreement.

Contract Termination Agreement

In this case, the employer wants to ensure that he or she can terminate the employees without being charged or anything else that can lead to a lawsuit. That is why this agreement is needed. In this article, we will guide you in creating a termination agreement template with the proper format.

Tips to Make a Termination Agreement

Make sure that this agreement contains the following information. First, you have to provide basic information of the employees. You can start with their names, their positions, their job descriptions, and any other needed information. Make sure that their basic information is written correctly.

In the agreement, you also have to state the valid reasons that can make the employees terminated. There are many examples for the reasons of employee termination. Some of the most common examples are employee incompetence, insubordination, breaking company’s policies, theft, etc.

Then, return of company property should also be included in this agreement. In fact, you will give some facilities after you hire the employees. This term must be explained to make sure that they will not leave the job or the company with property or any other facility belonging to the company.

A termination contract template should also contain statements that regard to vacation time as well as the final paycheck of the employee upon termination. It depends on the rules made by the company. Anyway, it must be explained as detailed as well as clear as possible to prevent misunderstanding later.

Statements that regard to health insurance or other benefits must be described, too. It aims to ensure that they understand that after they are fired, there is still a matter of health insurance or other benefits which have to be dealt with. So, you should outline it as clearly as possible in this agreement.

The agreement also needs to explain about the disciplinary actions that the employees should commit. Sometimes, you cannot directly fire your employees for the mistake first time they make. Depending on the situations, you may need to provide a verbal warning & a written warning before termination letter.

It is also very important to include statements that regard to employees given the opportunity to explain themselves. For example, they cannot go to work because there is one of their family members who passed away or they unexpectedly got an accident or any other reason that makes them cannot arrive.

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If you need termination agreement samples, there are many free downloadable & editable templates you can find on internet. Now, after you understand what to write in this agreement, you can practice creating one. So, there is no issue about termination in your business or company in the future.

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