Termination Letter
NOTICE OF TERMINATION OF EMPLOYMENT
[COMPANY LETTERHEAD]
TABLE OF CONTENTS
I. Document Header
II. Definitions
III. Operative Provisions
IV. Representations & Warranties
V. Covenants & Restrictions
VI. Default & Remedies
VII. Risk Allocation (Reserved)
VIII. Dispute Resolution
IX. General Provisions
X. Execution Block
I. DOCUMENT HEADER
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Parties.
1.1 Company: [COMPANY NAME], a [STATE OF INCORP.] [corporation/LLC] with its principal place of business at [COMPANY ADDRESS] (“Company”).
1.2 Employee: [EMPLOYEE NAME], residing at [EMPLOYEE ADDRESS] (“Employee”). -
Effective Date. This Notice of Termination of Employment (“Notice”) is effective as of [DATE OF ISSUANCE] (“Effective Date”).
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Jurisdiction. This Notice, and any dispute arising herefrom, shall be governed by the laws of the State of Maryland without regard to its conflict-of-laws rules.
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Recitals.
A. Employee has been employed by Company in the position of [JOB TITLE] pursuant to an at-will employment relationship.
B. Company has elected to terminate Employee’s employment, subject to the terms and information set forth herein.
II. DEFINITIONS
For purposes of this Notice, capitalized terms shall have the meanings set forth below:
“Affected Benefits” – Employer-sponsored group health, dental, and/or vision insurance plans subject to continuation under COBRA.
“COBRA” – The Consolidated Omnibus Budget Reconciliation Act of 1985, as codified at 29 U.S.C. § 1161 et seq.
“Final Pay” – All wages, salary, and accrued but unused vacation or paid-time-off (“PTO”) that are due and owing to Employee through and including the Termination Date, to be paid in compliance with Md. Code Ann., Lab. & Empl. § 3-505.
“Termination Date” – The close of business on [TERMINATION DATE], after which employment shall cease.
III. OPERATIVE PROVISIONS
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Termination of Employment.
1.1 Employment is hereby terminated effective as of the Termination Date.
1.2 Nothing in this Notice alters the at-will nature of the employment relationship prior to the Termination Date. -
Final Pay.
2.1 Company shall deliver Employee’s Final Pay on or before [NEXT REGULAR PAYDAY], consistent with Md. Code Ann., Lab. & Empl. § 3-505(a).
2.2 Final Pay will be remitted via [DIRECT DEPOSIT / PAPER CHECK] to Employee’s last known account or address on file. -
Benefits & COBRA.
3.1 Coverage under Affected Benefits will terminate at 11:59 p.m. on the Termination Date, unless otherwise stated in the applicable plan documents.
3.2 Employee will receive, under separate cover, a COBRA Election Notice in accordance with 29 U.S.C. § 1166(a), advising of rights to continue coverage at Employee’s own expense. -
Unemployment Insurance (“UI”).
4.1 Employee may be eligible to apply for UI benefits through the Maryland Department of Labor, Division of Unemployment Insurance.
4.2 Company will timely respond to any UI information requests consistent with Maryland law. -
Return of Company Property.
5.1 No later than the Termination Date, Employee shall return to Company all Company Property (as defined below) in Employee’s possession or control.
5.2 “Company Property” includes, without limitation, keys, access cards, identification badges, credit cards, computers, mobile devices, documents (electronic or hard copy), and all Confidential Information. -
Confidential Information.
Employee remains bound by all post-employment confidentiality, proprietary information, and restrictive covenant obligations contained in [REFERENCE PRIOR AGREEMENTS], which survive termination.
IV. REPRESENTATIONS & WARRANTIES
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Company Representations.
1.1 Company represents that it will pay all Final Pay and provide all statutorily required notices in good faith compliance with applicable law. -
Employee Representations.
2.1 Employee represents that, as of the Execution Date, (a) all Company Property in Employee’s possession will be returned as required; and (b) Employee has not retained any copies (electronic or physical) of Confidential Information.
V. COVENANTS & RESTRICTIONS
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Non-Disparagement. Employee shall not make any false, malicious, or disparaging statements about Company, its affiliates, or their respective officers, employees, or products/services.
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Further Cooperation. Upon reasonable request, Employee shall cooperate with Company in the orderly transition of duties and in connection with any investigation, litigation, or administrative proceedings relating to events that occurred during Employee’s employment.
VI. DEFAULT & REMEDIES
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Events of Default.
Failure by Employee to return Company Property or comply with confidentiality obligations shall constitute a default. -
Cure Period.
Upon written notice of default, Employee shall have three (3) business days to cure such default to Company’s satisfaction. -
Remedies.
In addition to any remedies available at law or in equity, Company may withhold the value of unreturned Company Property from any unpaid portion of Final Pay to the extent permitted by Maryland law, and may pursue damages or injunctive relief in state court.
VII. RISK ALLOCATION (RESERVED)
VIII. DISPUTE RESOLUTION
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Governing Law. This Notice shall be construed in accordance with, and all disputes shall be governed by, the laws of the State of Maryland.
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Forum Selection. The parties consent to the exclusive jurisdiction and venue of the state courts located in [COUNTY], Maryland for any dispute arising from or related to this Notice.
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Arbitration; Jury Trial. No arbitration agreement or jury-trial waiver is created or implied hereby.
IX. GENERAL PROVISIONS
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Entire Agreement. This Notice, together with any surviving restrictive covenant agreements, constitutes the entire understanding of the parties with respect to the subject matter and supersedes all prior oral or written communications regarding termination of employment.
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Severability. If any provision of this Notice is held unenforceable, the remainder shall be enforced to the fullest extent permitted by law, and the unenforceable provision shall be deemed modified to the limited extent necessary to render it valid.
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Amendments; Waiver. No amendment or waiver of any provision shall be effective unless in writing and signed by both parties.
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Electronic Signatures. Facsimile, PDF, or electronic signatures shall be deemed originals and fully enforceable.
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No Admission. This Notice does not constitute an admission by Company of wrongdoing or liability of any kind.
X. EXECUTION BLOCK
IN WITNESS WHEREOF, the undersigned have executed (or acknowledged receipt of) this Notice as of the Effective Date.
| COMPANY | EMPLOYEE |
|---|---|
| By: ___________________________ | ______________________________ |
| Name: [AUTHORIZED SIGNATORY] | [EMPLOYEE NAME] |
| Title: [TITLE] | |
| Date: _________________________ | Date: _________________________ |
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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.
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Last updated: November 2025