A Fixed Term Contract Termination Letter is an essential document used when concluding a fixed-duration employment relationship in the United States. It serves multiple purposes: formally documenting the end of the employment relationship, communicating final arrangements, and ensuring compliance with federal and state employment laws. This document is typically used when a fixed-term contract is ending as planned, though it may also be used for early termination if permitted by the original contract terms. The letter should include specific details about the termination date, final compensation, benefits continuation rights under COBRA, return of company property, and any surviving obligations. It helps protect both employer and employee by clearly documenting the terms of the separation and reducing the risk of future disputes.
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1. Header and Date: Company letterhead, current date, and proper business letter formatting
2. Recipient Details: Employee's full name, address, and any relevant employee identification numbers
3. Subject Line: Clear indication that this is a contract termination notice
4. Contract Reference: Specific details about the fixed-term contract being terminated, including original start and end dates
5. Termination Statement: Clear statement of the termination and the effective date
6. Final Pay Information: Details about final salary, outstanding benefits, and payment timing
7. Company Property: Instructions regarding return of company property and equipment
8. Closing Statement: Professional closing with contact information for any questions
9. Signature Block: Space for authorized signatory's name, title, and signature
1. Reason for Termination: Include when termination is due to specific circumstances that need to be documented, such as project completion or organizational changes
2. Benefits Continuation: Include when the employee is eligible for COBRA or other benefits continuation
3. Non-Compete Reminder: Include when the original contract contained non-compete or non-disclosure provisions that survive termination
4. Reference Offer: Include when the company is willing to provide employment references
5. Severance Information: Include when severance pay or additional benefits are being offered
6. Transition Responsibilities: Include when the employee needs to complete specific handover tasks before departure
1. Final Payment Schedule: Detailed breakdown of final payment including salary, benefits, and any additional compensation
2. Company Property Checklist: List of company items to be returned before or on the last day
3. Benefits Summary: Summary of benefits status and continuation options
4. Exit Process Checklist: Checklist of tasks and procedures to be completed before the last day
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