EMPLOYEE TERMINATION LETTER

State of Michigan

TABLE OF CONTENTS

1. Employer and Employee Information
2. Purpose and Effective Date of Termination
3. Reason for Termination
4. Final Wages and Compensation
5. Accrued Benefits and Fringe Benefits
6. Health Insurance Continuation (COBRA / MI Mini-COBRA)
7. Unemployment Insurance Information
8. Return of Company Property
9. Post-Employment Obligations
10. Anti-Retaliation and Non-Discrimination Statement
11. References and Employment Verification
12. Severance (If Applicable)
13. General Provisions
14. Acknowledgment and Signatures
15. Enclosures and Attachments Checklist
16. Sources and References

1. EMPLOYER AND EMPLOYEE INFORMATION

Employer (Company):

Employee:

Prepared By:

Delivery Method:

☐ Hand delivery with signed acknowledgment
☐ Certified mail, return receipt requested
☐ Email with read receipt and follow-up hard copy
☐ Other: [________________________________]

2. PURPOSE AND EFFECTIVE DATE OF TERMINATION

This letter serves as formal notification that the employment of [Employee Full Legal Name] ("Employee") with [Company Legal Name] ("Company") is terminated effective [__/__/____] ("Effective Date").

3. REASON FOR TERMINATION

Michigan is an at-will employment state. Either party may end the employment relationship at any time, with or without cause.

☐ Voluntary Resignation
☐ Involuntary Termination – Performance
☐ Involuntary Termination – Misconduct
☐ Position Elimination / Reduction in Force
☐ End of Contract / Temporary Assignment
☐ Mutual Agreement
☐ Other – [________________________________]

Explanation: [________________________________]

4. FINAL WAGES AND COMPENSATION

Michigan Final Paycheck Requirements

Under the Michigan Payment of Wages and Fringe Benefits Act (MCL 408.471 et seq.), commonly known as PA 390 of 1978, an employer must pay all wages earned and due to a terminated employee (whether voluntarily leaving or discharged) on the regularly scheduled payday for the period in which the termination occurs.

"Wages" under the Act means all earnings determined on the basis of time, task, piece, commission, or other method of calculation, excluding fringe benefits. MCL 408.471(1).

Penalties: Under MCL 408.477, an employer who fails to pay wages in accordance with the Act may be liable for the unpaid wages plus liquidated damages, costs, and attorney fees.

Payment method: ☐ Direct deposit ☐ Paper check ☐ Other: [________________]

Expense Reimbursement

Submit documented business expenses within [____] business days. Reimbursement within [____] days after approval.

5. ACCRUED BENEFITS AND FRINGE BENEFITS

Fringe Benefits at Termination

Under MCL 408.474, an employer shall not withhold payment of compensation due as a fringe benefit to be paid at the termination date unless the withholding is agreed to by written contract or signed statement obtained with full and free consent.

"Fringe benefits" under MCL 408.471(2) means compensation pursuant to a written contract or written policy for holiday, sick time, personal time, vacation, bonuses, authorized expenses, and employer contributions.

☐ Company written policy provides for vacation/PTO payout at termination.
☐ Company written policy does not provide for payout at termination.

Important: Michigan does not require payout of unused vacation or PTO unless a written policy or contract obligates the employer to do so. If a written policy exists, it is enforceable as wages.

6. HEALTH INSURANCE CONTINUATION (COBRA / MI MINI-COBRA)

Federal COBRA (Employers with 20+ Employees)

Employee may elect continuation under 29 U.S.C. §§ 1161–1169 for up to 18 months.

Michigan Mini-COBRA (MCL 500.3406p)

For employers with fewer than 20 employees, Michigan's continuation coverage statute provides eligible employees the right to continue group health coverage for up to 18 months at their own expense (plus a 2% administrative fee).

☐ Federal COBRA applies
☐ Michigan Mini-COBRA applies
☐ No group health coverage offered

7. UNEMPLOYMENT INSURANCE INFORMATION

Employee may be eligible for unemployment benefits through the Michigan Unemployment Insurance Agency ("UIA").

How to File a Claim:
- Online: https://www.michigan.gov/uia
- Phone: (866) 500-0017

Required Employer Notice: Michigan employers must provide UIA Form 1711 ("Unemployment Compensation Notice to Employee") at the time of separation.

☐ UIA Form 1711 is enclosed.
☐ The Company will not contest the unemployment claim.
☐ The Company reserves the right to provide accurate separation information to UIA.

8. RETURN OF COMPANY PROPERTY

Employee must return all Company property on or before the Effective Date.

Note: Under Michigan law, the employer may not condition payment of final wages on return of property. Property disputes must be resolved separately.

9. POST-EMPLOYMENT OBLIGATIONS

Employee remains bound by surviving agreements:

☐ Confidentiality / Non-Disclosure Agreement dated [__/__/____]
☐ Non-Competition Agreement dated [__/__/____]
☐ Non-Solicitation Agreement dated [__/__/____]
☐ Intellectual Property Assignment dated [__/__/____]
☐ Other: [________________________________]

Michigan Non-Compete Law: Under MCL 445.774a (Michigan Antitrust Reform Act), an employer may obtain reasonable non-compete agreements from employees. Michigan courts apply a reasonableness test considering duration, geographic scope, and the type of activity restricted. Agreements must protect a legitimate competitive business interest.

10. ANTI-RETALIATION AND NON-DISCRIMINATION STATEMENT

This termination was made without regard to any characteristic protected by the Elliott-Larsen Civil Rights Act (MCL 37.2101 et seq.) or the Persons with Disabilities Civil Rights Act (MCL 37.1101 et seq.), or federal law.

Employee's rights include:

• Filing a complaint with the Michigan Department of Civil Rights or the EEOC;
• Participating in any governmental investigation;
• Engaging in protected activity under the National Labor Relations Act;
• Reporting violations under Michigan's Whistleblowers' Protection Act (MCL 15.361 et seq.).

11. REFERENCES AND EMPLOYMENT VERIFICATION

The Company will confirm: dates of employment, last position held, and final salary (with written authorization).

Under MCL 423.452 (Michigan Job Reference Immunity), employers acting in good faith are generally immune from civil liability for disclosing job performance information.

Verification requests: [________________________________]

12. SEVERANCE (IF APPLICABLE)

☐ No severance is being offered.
☐ Severance offered per separate agreement (enclosed).

13. GENERAL PROVISIONS

13.1 At-Will Confirmation. This letter confirms the at-will nature of the prior employment relationship.

13.2 Governing Law. Governed by Michigan law. Exclusive venue in the state courts of [________________________________] County, Michigan.

13.3 No Admission. This letter is not an admission of liability.

13.4 No Waiver. No release of claims by either party.

13.5 Severability. Invalid provisions do not affect remaining provisions.

14. ACKNOWLEDGMENT AND SIGNATURES

Company Representative

Signature: ________________________________________

Printed Name: [________________________________]

Title: [________________________________]

Date: [__/__/____]

Employee Acknowledgment

I acknowledge receipt of this letter and all enclosures. My signature confirms receipt only and does not waive any legal rights.

Signature: ________________________________________

Printed Name: [________________________________]

Date: [__/__/____]

☐ Employee declined to sign. Witnessed by:

Witness: [________________________________] Date: [__/__/____]

15. ENCLOSURES AND ATTACHMENTS CHECKLIST

☐ Final pay statement
☐ COBRA / Michigan mini-COBRA election notice
☐ UIA Form 1711 (Unemployment Compensation Notice)
☐ Benefits and 401(k) rollover information
☐ Copies of surviving agreements
☐ Severance Agreement and Release (if applicable)
☐ Property return checklist
☐ Other: [________________________________]

16. SOURCES AND REFERENCES

• MCL 408.471 et seq. – Payment of Wages and Fringe Benefits Act: https://www.legislature.mi.gov/Laws/MCL?objectName=MCL-408-471
• MCL 408.474 – Fringe benefits at termination
• MCL 408.477 – Penalties for wage violations
• MCL 500.3406p – Michigan mini-COBRA
• MCL 37.2101 et seq. – Elliott-Larsen Civil Rights Act
• MCL 37.1101 et seq. – Persons with Disabilities Civil Rights Act
• MCL 445.774a – Non-compete enforceability
• MCL 15.361 et seq. – Whistleblowers' Protection Act
• MCL 423.452 – Job reference immunity
• Michigan UIA: https://www.michigan.gov/uia

This template is provided by ezel.ai for informational purposes only. It does not constitute legal advice. Verify citations before use. Have this document reviewed by a licensed Michigan attorney.