Termination Letter
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NOTICE OF TERMINATION OF EMPLOYMENT

[// GUIDANCE: This is a template termination letter drafted for use in Michigan. Replace all bracketed placeholders and delete all guidance comments before issuing to the employee.]


TABLE OF CONTENTS

  1. Document Header
  2. Definitions
  3. Operative Provisions
    3.1 Notice of Termination
    3.2 Final Compensation & Accrued Benefits
    3.3 Benefits Continuation (COBRA)
    3.4 Unemployment Insurance Information
    3.5 Return of Employer Property
    3.6 Post-Employment Obligations
  4. General Provisions
  5. Execution Block

1. DOCUMENT HEADER

Date: [DATE]

To:
[EMPLOYEE NAME]
[EMPLOYEE ADDRESS]

From:
[EMPLOYER LEGAL NAME] (“Employer”)
[EMPLOYER ADDRESS]

Re: Notice of Termination of Employment – Effective [EFFECTIVE TERMINATION DATE]

Governing Law & Forum Selection: This Notice shall be governed by, construed, and enforced in accordance with the laws of the State of Michigan, and any action arising out of or relating to this Notice shall be brought exclusively in a state court of competent jurisdiction located in Michigan.


2. DEFINITIONS

For purposes of this Notice, the following capitalized terms have the meanings set forth below:

“Employee” means [EMPLOYEE NAME].
“Effective Date” means [EFFECTIVE TERMINATION DATE], the date on which the Employee’s employment with Employer ends.
“Final Regular Payday” means the next regularly-scheduled payday after the Effective Date, currently scheduled for [DATE].
“COBRA” means the Consolidated Omnibus Budget Reconciliation Act, 29 U.S.C. § 1161 et seq., and the regulations thereunder.


3. OPERATIVE PROVISIONS

3.1 Notice of Termination

Pursuant to this written notice, Employer hereby terminates Employee’s employment effective as of the Effective Date. The employment relationship between Employer and Employee shall cease in all respects on the Effective Date, subject to any surviving obligations expressly set forth herein or in any other written agreement between the parties.

3.2 Final Compensation & Accrued Benefits

a. Wages. Consistent with Michigan’s Payment of Wages and Fringe Benefits Act, all wages earned and unpaid through the Effective Date will be paid to Employee on the Final Regular Payday via [DIRECT DEPOSIT/CHECK].

b. Accrued, Unused Paid Time Off. [IF APPLICABLE] Employer will pay Employee for [NUMBER] hours of accrued but unused paid time off in the same payment referenced in subsection (a), in accordance with Employer’s written policy.

c. Expense Reimbursement. Employee must submit any outstanding, reasonable, and properly documented business expenses within five (5) calendar days after the Effective Date. Approved expenses will be reimbursed no later than fourteen (14) calendar days following receipt of proper documentation.

[// GUIDANCE: If a severance package is being offered, insert a separate subsection here conditioned on execution of a release that complies with federal and state law (e.g., OWBPA for employees age 40+).]

3.3 Benefits Continuation (COBRA)

a. Health Coverage. Employee’s group health coverage will terminate at 11:59 p.m. on the Effective Date. Pursuant to COBRA, Employee (and Employee’s covered dependents, if any) are entitled to elect continuation coverage at their own expense.

b. Election Packet. A separate COBRA election notice and enrollment package will be sent to Employee by the plan administrator within the statutory timeframe. All questions regarding COBRA coverage, including cost, duration, and enrollment procedures, should be directed to the plan administrator identified in that packet.

[// GUIDANCE: Do not attach the COBRA notice to this letter; the plan administrator should issue the official notice to avoid administrative errors.]

3.4 Unemployment Insurance Information

Michigan law permits eligible individuals who become unemployed through no fault of their own to apply for unemployment benefits through the Michigan Unemployment Insurance Agency (UIA). Employee may file a claim online at www.michigan.gov/uia or by calling 1-866-500-0017. Employer will provide the required UIA Form 1711, “Unemployment Compensation Notice to Employee,” contemporaneously with this Notice. Eligibility determinations are made exclusively by the UIA.

3.5 Return of Employer Property

On or before the Effective Date, Employee must return to Employer all property, documents, and confidential information belonging to Employer, including but not limited to keys, access cards, identification badges, credit cards, computers, mobile devices, and any originals or copies of Employer records in whatever form (paper, electronic, or otherwise).

3.6 Post-Employment Obligations

Employee remains bound by all continuing obligations contained in any previously executed agreements with Employer, including but not limited to confidentiality, intellectual-property assignment, non-solicitation, and/or non-competition provisions, if applicable. Nothing in this Notice modifies or waives those obligations.


4. GENERAL PROVISIONS

4.1 At-Will Relationship Acknowledgement. Employee acknowledges that Employee’s employment with Employer has always been at-will and that nothing contained herein shall be construed to create a contract of employment for any definite period.

4.2 No Waiver. No failure or delay by either party in exercising any right under this Notice shall operate as a waiver thereof.

4.3 Severability. If any provision of this Notice is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect, and the invalid or unenforceable provision shall be reformed to the minimum extent necessary to render it valid and enforceable.

4.4 Entire Notice. This Notice constitutes the entire understanding between the parties with respect to the subject matter herein and supersedes all prior oral or written communications regarding such subject matter, except for any separate, duly-executed agreement that expressly survives termination of employment.

4.5 Amendments. This Notice may be amended only by a written instrument signed by both parties.

4.6 Counterparts & Electronic Signatures. This Notice may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Signatures transmitted by facsimile or in portable document format (PDF) shall be deemed effective as originals.


5. EXECUTION BLOCK

IN WITNESS WHEREOF, the undersigned have caused this Notice to be executed as of the date first written above.

Employer Employee
[EMPLOYER LEGAL NAME] [EMPLOYEE NAME]
By: _________ _________
Name: [AUTHORIZED SIGNATORY NAME]
Title: [TITLE]
Date: _______ Date: ____

[// GUIDANCE: If notarization or witness signatures are required under internal policy, insert additional signature lines here.]


[// GUIDANCE: Retain a signed copy in the personnel file. Deliver the original to the employee via a verifiable method (e.g., certified mail, hand-delivery with receipt).]

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