Employee Contract Termination Template

It happens you need to end a contract with an employee, or switch from a provider, because you are getting a better deal, better quality, or quantity, etc. If that is the case, it's important to make sure you manage the transfer to the candidate well. One important step is that you cancel the existing business relationship with the current employee, often this goes associated with sending out a formal cancellation letter to end the contract.

How do I write a termination letter for a contract? 

A letter of termination of a contract is a formal statement of your intent to end the existing business relations with another party that you have previously entered into an agreement or contract with. Below you find a proper format and tone that should be used when writing a letter to terminate a contract or agreement. There is no need to start from scratch when you want to discuss the termination of service, membership, subscription that you use. Instead, we provide this letter template with text and formatting as a starting point to help you out.

Letter of termination format:

        Heading

•   Includes the address, line by line, with the date. Greeting ends with a comma.

Introduction

•  Effective {{Date of today), I would like to cancel my contract for your {{products/services}}.
  
• I have enclosed my final monthly payment of {{amount}} as per my contract.
•  I have been pleased with our prior relationship and it is my wish that we part on good terms.
•  I am writing to you today to cancel our contract that is dated for the sale of the following items: {{Describe the items that you are canceling the contract for}}

    Body

• Our contract is being canceled for the following reasons: {{Detail why the contract is being canceled}}
• The cancellation of the above-referenced contract is effective immediately for violating the terms and conditions that were stated in our contract as stated above.
• Please call me at the phone number found above if you have any questions regarding this contract cancellation.
• My contract agreement with you for the calendar year expires next month. Please use this letter as our notice not to renew that contract.
• Since this is outside the standard {{21}} days’ notice required by the contract that I signed.
• For your reference, my contract number is {{include contract or customer number to help the company find your records}}.

Complimentary close

• Please feel free to contact me with any additional issues you may have regarding this contract termination letter.
• Please confirm receipt of this letter by telephone or email {{email address}}. Thank you for your prompt attention to this matter.
• For your reference, my contract number is {{state number}}.
• Please confirm receipt of this letter by telephone or email.
• Thank you for your prompt attention to this matter.

Signature

See below for our free Employee Contract Termination Template sample:

Dear Sir/Madam {{Name}},

The purpose of this letter is to inform you that we will no longer require your services, as of {{date}}. Therefore, your contract will be discontinued and you may consider the above-mentioned date as your last day of work. With the present letter, we comply with the minimum notice period required by our contract.

You are required to return any of the company’s material, documents or equipment to which you had access during your contract. As with all employees, you are bound by our confidentiality and data protection policies.

You are entitled to be paid the amount of {{amount}} according to your contract and legal dictations. We will provide the payment on {{final day of work}}. You are also entitled to {{possible compensation or benefits}}.

We would like to thank you for your work so far and we wish you all the best for the future.

Yours sincerely,

{{Signature}}

Our private, business, and legal document templates are regularly screened by professionals. If time or quality is of the essence, this ready-made template can help you to save time and focus on the topics that really matter. Using this Employee Contract Termination Template provides an easy way to save time and effort and canceling your contract has never been easier. It comes in Microsoft Office format and is ready to be tailored to your personal needs.