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Employee Termination Notice
The notice an employer gives to end an employment. What it has to say, and how much notice it has to give, comes from the contract and from the law of the state you employ in.
- Your employment contract read before anything is written
- The grounds, the notice period and the last working day stated clearly
- Written for the state your establishment is registered in
- The dues and the return of company property dealt with
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What an employment termination notice is
The employer’s written notice that the employment is ending, the reasons for it and the date it ends.
An employment termination notice is a notice given by an employer to an employee where the employer, for one or more reasons, wants to bring the employment to an end.
It should state the reasons for the termination, the length of the notice period being given, and the date on which the employment will end. The live guidance the business has published for years puts it plainly: the notice has to be given with proper reasoning, and after a genuine attempt to counsel the employee.
It is usually drafted on the company letterhead and signed and authorised by the employer. How much notice is owed is a question for the employment contract and for the Shops and Establishments Act of the state the establishment is registered in. Those are two separate sources and the longer of them governs.
- Given by
- The employer
- Signed and authorised by them
- Must state
- Reasons and dates
- And the notice being given
- Notice period
- Contract and state law
- Whichever of the two is longer
- Drafted on
- Company letterhead
- Delivered by
- A traceable route
- Hand delivery or registered post
- Stamp paper
- Not required
Why employers do not do this one alone
- Your employment contract read before the notice is drafted
- A consultation call about the grounds and what they commit you to
- The notice period checked against the state your establishment sits in
- The dues, the last working day and company property dealt with in one document
- Thousands of businesses served across every state in India
What the drafting covers
The notice, and the conversation about whether the grounds and the period behind it hold up.
- A consultation call about the grounds for the termination
- Your employment contract and appointment letter read before drafting
- A notice drafted from scratch, stating the grounds, the notice period and the last working day
- Full and final settlement, and the return of company property, covered in the same notice
- Revisions after you have read the draft
We draft the notice and tell you what it commits you to. Whether to terminate, and on what grounds, is the employer’s decision and stays with the employer.
What goes wrong most often
No reason given
A notice that ends an employment without stating why is the hardest kind to defend later, and in several states it is not a valid notice at all.
The wrong notice period
The contract says one thing and the state’s Shops and Establishments Act says another. The employee is owed the longer of the two, and paying in lieu is only an option if the contract allows it.
No record of delivery
Hand it over against a signature, or send it by registered post. A notice the employee can say they never received is a notice that never started running.
Dues left hanging
Unpaid salary, leave encashment, gratuity where it applies, and the return of laptops, cards and keys. Settling them in the notice is what closes the matter.
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How much notice does an employer have to give?
Whatever the employment contract says, and whatever the Shops and Establishments Act of the state the establishment is registered in requires, because the employee is entitled to the longer of the two.
The periods differ by state, which is why this is the first thing checked on the consultation call rather than something this page can answer.
Can the notice period be paid out instead of served?
Only if the employment contract provides for payment in lieu of notice. Where it is silent, an employer who pays instead of giving notice is departing from the agreed terms.
Does the reason for the termination have to be stated?
It should be. A notice that gives no reason is the weakest position an employer can take if the termination is later challenged, and some state rules require the ground to be stated.
Where performance is the reason, a record of the counselling that preceded it is worth as much as the notice.
Is a termination notice the same as a relieving letter?
No. The notice ends the employment; the relieving letter is issued afterwards, on the last working day, confirming that the employee has been relieved of their duties.
An employee who is terminated is still normally issued a relieving letter, because the next employer will ask for one.
Does it need stamp paper?
No. It is a letter on the company letterhead, signed and authorised by the employer.
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