Termination Letter

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 working days after the Termination Date or (ii) the end of the next regular pay period, in accordance with A.R.S. § 23-353(A).

“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 Active-employee coverage will end on [PLAN-SPECIFIC DATE] under the governing plan documents.
   3.2 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.

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
   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. 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 is requested to contact [HR CONTACT] regarding an unreturned item, expense, payroll issue, or work-related injury. Any signature below acknowledges receipt only and is not a representation, warranty, release, or new covenant.

V. COVENANTS & RESTRICTIONS

1. Protected Communications
   Nothing in this Notice restricts truthful reports to government agencies, participation in investigations, protected concerted activity, or any other nonwaivable right.

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
   This unilateral Notice does not create a forum-selection agreement.

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

The optional signature below acknowledges receipt only. Refusal to sign does not affect the termination decision or payment of earned wages.

SOURCES AND REFERENCES

• Arizona Revised Statutes § 23-353: https://www.azleg.gov/ars/23/00353.htm
• Arizona Department of Economic Security, unemployment insurance: https://des.az.gov/services/employment/unemployment-individual/apply-ui-benefits
• 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