Employment Termination Letter

You may terminate the employment of your employee on such legal grounds as retrenchment, misconduct or discharge. In India, we do not follow the hire and fire policy and so termination may only be undertaken after giving prior notice and with a proper termination letter. You, as an employer, must follow the right procedure according to the Labour Laws for employment termination to avoid prosecution and legal complications.

Hiring the top employment law lawyers in your locality shall help you in drafting a legally sound and effective employment termination letter that is tailored to fit the circumstances and your needs.

Draft Employment Termination Letter Online
At INR 1999

What You'll Get In The Package


  • 20 minutes consultation and advise from the top employment lawyers to get acquainted and discuss the work to be undertaken
  • Insight into your specific requirements and needs
  • Drafting of draft termination letter to be sent to you for approval
  • Drafting of final termination letter incorporating your suggestions (if any)


  • The lawyer shall not undertake any work in addition to the drafting of the termination letter
  • You may hire the lawyer for any additional employment disputes that you may have

Documents for the drafting of Employment Termination Letter

  1. The employment agreement that had been entered into between you and the employee who you intend to terminate
  2. Copy of notice sent to employee giving him reasonable notice of impending termination and the grounds behind the same

Process of drafting Employment Termination Letter

  1. You must hire the top Employment lawyers in your locality to help you draft a termination letter tailored to meet your specific needs and circumstances.
  2. The draft termination letter shall be drafted and sent to you for approval.
  3. The final termination letter shall be drafted incorporating your suggestions(if any).


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What are the legal grounds of termination of employment?
In India, we do not follow the hire and fire rule and the labour laws lay down such grounds that are valid grounds of employment. The following are the grounds on which an employer can legally terminate an employee in India: 1. Misconduct: where the employee has indulged in such misconduct which makes him liable to face disciplinary actions. Misconduct may include sexual harassment, theft, fraud, damage to employer’s property, etc. Misconduct is an inclusive list and hence, the employer may add such other reasonable offences as are deemed necessary. 2. Discharge: where due process is followed by the employer including giving 30 days notice before dismissal and following other such procedures as mentioned in the employment contract 3. Retrenchment: where the employee has been terminated for such other reasons other than on disciplinary actions with certain exceptions. When the employee is terminated after having worked with the employer for atleast 2 years due to redundancy. The employer has to pay the requisite severance pay.
Do I need to give severance pay when I terminate an employee?
You have to necessarily pay severance pay if you are terminating your employee on the grounds of redundancy after s/he has been in your employment for more than 2 years. If you do not pay severance pay in such instance, it will be considered to be a wrongful termination of employment. Also, in such cases where a severance pay is provided for in the contract of employment entered into between you and your employer, you must pay severance pay to avoid prosecution for wrongful termination.
Can I fire an employee for making a wrongful complaint?
If the charges made by the employee have been proven to be false and it is discovered that the charges were made with bad intentions of lowering the reputation of your company, it can be a ground for termination. You may indeed terminate your employee for indulging in such activities voluntarily that may reduce the reputation of the company leading to a loss in credibility in the market.
Can I fire my employee for any reason at all?
You must fire your employees only on legal grounds laid down by the labour laws in India in order to avoid prosecution for wrongful termination. You may fire your employees only for the purpose of retrenchment, misconduct or discharge.
Can I fire my employee who has been regularly coming late to work inspite of several warnings?
Yes, if your employee has been coming late to work regularly inspite of the warnings given by you, it may be a legal ground of termination. You may fire the employee on the grounds of misconduct. However, you must first give your employee the opportunity to explain himself by conducting a disciplinary proceeding which should be conducted in a fair and reasonable manner. If, after the proceedings, the misconduct of the employee has been proved, you may terminate his employment.
How long will it take to draft a termination letter?
Legistify provides you with the services of the top employment lawyers to help you draft a termination letter tailored to your specifications, needs and circumstances within a reasonable time period at affordable costs.
What is the meaning of retrenchment?
Retrenchment refers to laying-off of employees forcefully so as to reduce the finances spent on payroll. This kind of termination is good in the eye of the law inspite of there being no fault on the part of the employees. It is generally a step taken by the employer to limit losses or increase profits.
When can employees be retrenched?
Employees may be retrenched owing to operational requirements of the employer. Operational requirements include structural, economic, technological or any such other needs of the employer. The Courts generally view retrenchment to be valid when there was a reasonable reason for the same and when such retrenchment was unavoidable.
What is wrongful termination?
Wrongful termination in India is when the employer terminates an employee on the basis of discrimination, personal issues or in violation of the terms of agreement of the employment agreement. If the employer terminates employment on the basis of sex, age, race or caste of the employee, it is a ground for wrongful termination and is also violative of the fundamental rights of the employee. If the employee is terminated due to there being some personal issues with the employer or where the employer hasn’t followed the termination clause mentioned in the employment contract of the employee, it also amounts to wrongful termination and may result in prosecution on the part of the employee.
Is it necessary to give a termination letter when an employee resigns?
Even when the employee resigns, you must give a termination letter to him/her so as to ensure that the process of termination is finalized and there is no scope for any future litigation.