Termination Letter

[COMPANY LETTERHEAD]

TERMINATION OF EMPLOYMENT NOTICE

(Arkansas Jurisdiction)

Effective Date: [EFFECTIVE DATE]
Sent Via: [DELIVERY METHOD (e.g., Certified Mail, Hand-Delivery)]
To: [EMPLOYEE FULL LEGAL NAME] – [EMPLOYEE ADDRESS]

I. DOCUMENT HEADER

1. Parties
   1.1 Employer: [COMPANY LEGAL NAME], an [ENTITY TYPE] organized under the laws of the State of [STATE OF FORMATION], with its principal place of business at [COMPANY ADDRESS] (“Company”).
   1.2 Employee: [EMPLOYEE FULL LEGAL NAME] (“Employee”), last assigned to the position of [POSITION TITLE] at the Company’s [WORKSITE/LOCATION] facility.

2. Recitals
   WHEREAS, Company employed Employee pursuant to the [DATE] Employment Agreement (the “Employment Agreement”); and
   WHEREAS, Company has determined to terminate Employee’s employment in accordance with Arkansas law and the Employment Agreement;

NOW, THEREFORE, Company hereby issues this Termination of Employment Notice (the “Notice”) as follows:

II. DEFINITIONS

Capitalized terms not otherwise defined herein have the meanings ascribed in the Employment Agreement.

a. “Termination Date” means [EFFECTIVE TERMINATION DATE], the final date Employee is considered actively employed.
b. “Final Pay” means all wages earned through the Termination Date, including accrued, unused paid time off (“PTO”), commissions, and bonuses that are due and payable pursuant to Company policy and applicable law.
c. “COBRA” means continuation coverage as provided under the Consolidated Omnibus Budget Reconciliation Act, 29 U.S.C. § 1161 et seq.

III. OPERATIVE PROVISIONS

This is a unilateral notice of the termination decision. It is not a severance agreement or release, does not require consideration, and does not create new obligations for Employee. Any signature below acknowledges receipt only.

3. Termination of Employment
   3.1 At-Will Status. Employment with Company is and has always been “at-will.” Company elects to terminate such employment effective as of the Termination Date.
   3.2 Reason for Termination. [OPTION 1—FOR CAUSE]: Termination is for Cause as defined in Section [x] of the Employment Agreement, specifically [DESCRIPTION OF GROUNDS].
   [OPTION 2—WITHOUT CAUSE]: Termination is without Cause.
   3.3 No Future Employment. Employee is not authorized to represent himself/herself as an employee of Company after the Termination Date.

4. Final Pay & Deductions
   4.1 Payment Timing. In compliance with Ark. Code Ann. § 11-4-405, Company will issue all wages due no later than the next regular payday. If payment is not made within seven (7) days after that payday, the statute provides that Company owes double the wages due.
   4.2 Payment Method. Final Pay will be delivered via [DIRECT DEPOSIT/check] consistent with Company’s usual payroll practices.
   4.3 Authorized Deductions. Company will deduct all amounts legally permissible, including but not limited to [ITEMIZE IF APPLICABLE].
   4.4 Accrued PTO. Employee will receive payment for [NUMBER] hours of accrued, unused PTO, calculated at [RATE] per hour.

5. Benefits & COBRA Election
   5.1 Group Health Coverage End Date. Active-employee coverage ends on [PLAN-SPECIFIC DATE] under the governing plan documents.
   5.2 Continuation Notice. If the plan and separation are subject to federal COBRA, the Employer will notify the plan administrator and the plan administrator will issue a separate election notice under 29 U.S.C. § 1166. Federal COBRA generally does not apply when all employers maintaining the plan normally employed fewer than twenty employees on a typical business day during the preceding calendar year. The separate notice controls eligibility, deadlines, premiums, and payment terms.
   5.3 Other Benefits. Eligibility for all other Company-sponsored benefits ceases in accordance with applicable plan documents.

6. Return of Company Property
   Employee must, no later than [TIME] on [DATE], return all Company property, including but not limited to keys, security badges, credit cards, laptops, files (electronic and hard copy), and confidential information in any form.

7. Post-Employment Obligations
   7.1 Separate Agreements. This Notice does not create, expand, or reaffirm a post-employment restriction. Any separate confidentiality, noncompetition, nonsolicitation, or intellectual-property agreement must be reviewed independently for current enforceability.
   7.2 Protected Rights. Nothing in this Notice restricts truthful reports to government agencies, participation in investigations, protected concerted activity, or any other nonwaivable right.

8. Unemployment Insurance
   8.1 Eligibility Notice. Terminated employees may apply for unemployment insurance benefits through the Arkansas Division of Workforce Services (“ADWS”). Eligibility is determined solely by ADWS.
   8.2 Company Contests. Company [WILL/WILL NOT] contest Employee’s unemployment claim, provided Employee’s representations to ADWS are truthful and accurate.
   8.3 Required Separation Notice. Attach and deliver the current notice prescribed by Arkansas Division of Workforce Services Rule 5(A)(2). Delivery method is at the employer's discretion under the rule.

IV. REPRESENTATIONS & ACKNOWLEDGMENTS

9. Employee Representations
   9.1 Employee acknowledges receipt of this Notice and understands its contents.
   9.2 Any signature below acknowledges receipt only and is not a representation, release, or new covenant.
   9.3 Payment of earned wages is not conditioned on signature of this Notice.

10. Company Representations
    10.1 Company represents that all payments and benefits set forth herein constitute all amounts owed to Employee through the Termination Date.
    10.2 Company makes no representations regarding Employee’s future entitlement to unemployment insurance, tax consequences, or third-party benefits.

V. DISPUTE RESOLUTION & GOVERNING LAW

11. Governing Law
    This Notice concerns Arkansas employment and does not create a new choice-of-law agreement.

12. Forum Selection
    This Notice does not create a forum-selection agreement.

VI. MISCELLANEOUS

13. Severability
    If any provision of this Notice is held unenforceable, the remaining provisions shall remain in full force.

14. Entire Agreement
    Except as expressly referenced herein, this Notice does not modify or supersede the Employment Agreement or any other executed agreements between the parties.

15. No Waiver
    Failure by Company to enforce any provision shall not constitute a waiver of that provision or of any future breach.

VII. EXECUTION & ACKNOWLEDGMENT

Please sign and date where indicated below to acknowledge receipt and understanding of this Notice. Failure to sign will not negate the effectiveness of the termination.

© [YEAR] [COMPANY LEGAL NAME] – All Rights Reserved

SOURCES AND REFERENCES

• Arkansas Act 853 of 2019, § 7 (Ark. Code Ann. § 11-4-405): https://www.arkleg.state.ar.us/Acts/FTPDocument?path=%2FACTS%2F2019R%2FPublic%2F&file=853.pdf&ddBienniumSession=2019%2F2019R
• Arkansas Division of Workforce Services, Rule 5: https://dws.arkansas.gov/wp-content/uploads/New-Rule-5-1.pdf
• Arkansas Division of Workforce Services, unemployment insurance: https://dws.arkansas.gov/workforce-services/unemployment/
• U.S. Department of Labor, COBRA employer guide: https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/publications/an-employers-guide-to-group-health-continuation-coverage-under-cobra
• 29 U.S.C. §§ 1161 and 1166: https://www.govinfo.gov/app/collection/uscode/2024/title29