Termination Letter

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EMPLOYMENT TERMINATION NOTICE

(Arizona – At-Will Employment)

[Company Letterhead]
[Company Legal Name]
[Street Address] • [City], AZ [ZIP] • [Phone] • [Email]


I. DOCUMENT HEADER

Date: [DATE]
To: [EMPLOYEE LEGAL NAME], (“Employee”)
From: [AUTHORIZED SIGNATORY NAME / TITLE], on behalf of [COMPANY LEGAL NAME], an Arizona [corporation/LLC/etc.] (“Company”)
Re: Notice of Involuntary Termination of Employment – Effective [TERMINATION DATE] (“Termination Date”)

Recitals

A. Employee has been employed by Company on an at-will basis since [HIRE DATE].
B. Company has elected to terminate Employee’s employment effective as of the Termination Date, subject to the terms and information set forth herein.


II. DEFINITIONS

For ease of reference, the following capitalized terms shall have the meanings indicated below. Terms defined herein shall apply equally to singular and plural forms.

“COBRA” means the continuation-of-coverage requirements under the Consolidated Omnibus Budget Reconciliation Act, 29 U.S.C. § 1161 et seq.

“Final Paycheck” means all wages, accrued and unused paid time off (if applicable under Company policy), and any other amounts due to Employee on or before the Final Pay Deadline.

“Final Pay Deadline” means the earlier of (i) seven (7) working days after the Termination Date, or (ii) the next regular payday, in accordance with A.R.S. § 23-353.

“Protected Information” means Company trade secrets and confidential or proprietary information, whether written, oral, or electronic.


III. OPERATIVE PROVISIONS

  1. Termination of Employment
    1.1 Employee’s at-will employment with Company shall cease as of the Termination Date.
    1.2 Employee shall immediately discontinue holding out as a Company employee and shall not commit any act or omission reasonably calculated to bind Company post-termination.

  2. Final Pay & Accrued Benefits
    2.1 Company will issue the Final Paycheck (net of applicable withholdings) no later than the Final Pay Deadline.
    2.2 Itemized Final Paycheck information:
    • Regular wages through Termination Date: $ [AMOUNT]
    • Accrued, unused PTO: [HOURS / AMOUNT]
    • [Other amounts]: $ [AMOUNT]
    2.3 Delivery Method: [Direct deposit / Mailed check / Pick-up].

  3. Health Insurance & COBRA Rights
    3.1 Group health coverage will terminate at 11:59 p.m. on [TERMINATION DATE or LAST DAY OF MONTH].
    3.2 Within the statutory period, Employee will receive a separate COBRA Election Notice from [PLAN ADMINISTRATOR] detailing rights to continue coverage at Employee’s expense.

  4. Unemployment Insurance
    Employee may be eligible to apply for unemployment benefits administered by the Arizona Department of Economic Security (“DES”). Eligibility determinations are made solely by DES.

  5. Return of Company Property
    On or before the Termination Date, Employee shall return all Company property, including, without limitation: keys, fobs, credit cards, computers, mobile devices, documents, and all items containing Protected Information.

  6. Confidentiality & Continuing Obligations
    Employee reaffirms any existing confidentiality, non-competition, or non-solicitation covenants. All Protected Information remains the exclusive property of Company.

  7. References & Internal Inquiries
    All reference requests shall be directed to [HR CONTACT NAME], [TITLE], at [CONTACT INFORMATION]. Company’s standard policy is to provide dates of employment and position(s) held unless otherwise required by law.

  8. Conditional Severance Pay [OPTIONAL]
    8.1 In exchange for a full release of claims and other customary covenants, Company is willing to provide severance in the gross amount of $ [SEVERANCE AMOUNT], less applicable withholdings, payable per Company’s normal payroll schedule.
    8.2 Severance is contingent upon Employee executing and not revoking the enclosed Separation Agreement and General Release within the time periods prescribed therein.


IV. REPRESENTATIONS & WARRANTIES

Employee represents and warrants that:
a) All Company property in Employee’s possession will be returned by the Termination Date;
b) Employee has not transferred or disclosed any Protected Information to unauthorized persons; and
c) Employee has accurately reported all time worked and has no unreported work-related injuries.

These representations shall survive the Termination Date.


V. COVENANTS & RESTRICTIONS

  1. Non-Disparagement
    Employee shall refrain from making any statement or taking any action reasonably likely to disparage Company, its affiliates, or their respective officers, directors, or employees.

  2. Cooperation
    Upon reasonable notice, Employee agrees to cooperate with Company in connection with transitional matters or pending proceedings in which Employee’s knowledge or testimony is relevant.


VI. DEFAULT & REMEDIES

In the event Employee breaches Sections III-6, V-1, or V-2, Company reserves all rights and remedies at law or in equity, including injunctive relief, damages, and, where applicable, recovery of attorney fees and costs.


VII. RISK ALLOCATION

Indemnification, limitation of liability, insurance, and force majeure provisions are not applicable to this Employment Termination Notice.


VIII. DISPUTE RESOLUTION

  1. Governing Law
    This Notice, and any dispute arising herefrom, shall be governed by and construed in accordance with the laws of the State of Arizona, without regard to conflict-of-laws principles.

  2. Forum Selection
    The parties consent to the exclusive jurisdiction of the state courts located in [COUNTY], Arizona.

  3. Arbitration; Jury Waiver
    Not applicable.


IX. GENERAL PROVISIONS

  1. Entire Notice
    This Notice contains the complete statement of the matters addressed herein and supersedes any prior communications regarding the subject matter.

  2. Amendment & Waiver
    No modification or waiver shall be effective unless in writing and signed by an authorized representative of Company.

  3. Severability
    If any provision of this Notice is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.

  4. No Admission
    Nothing herein constitutes an admission of liability or wrongdoing by either party.


X. EXECUTION BLOCK

Please signify receipt and acknowledgment by signing below and returning this Notice to [HR CONTACT EMAIL] no later than [DATE].

Accepted and Acknowledged For Company
_______________________________ _______________________________
[EMPLOYEE LEGAL NAME] [AUTHORIZED SIGNATORY NAME]
Date: ______________ Title: [OFFICER TITLE]
Date: ______________

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About This Template

Employment documents govern the relationship between a company and its workers, from offer letters and employment agreements through handbooks, performance reviews, and separations. Done right, they set clear expectations, protect against wrongful termination and discrimination claims, and give both sides a record to rely on. Done poorly, they invite lawsuits, agency complaints, and costly disputes.

Important Notice

This template is provided for informational purposes. It is not legal advice. We recommend having an attorney review any legal document before signing, especially for high-value or complex matters.

Last updated: May 2026

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