NOTICE OF TERMINATION OF EMPLOYMENT
[On Company Letterhead]
I. DOCUMENT HEADER
Date: [DATE OF LETTER]
To: [EMPLOYEE FULL LEGAL NAME]
Address: [EMPLOYEE ADDRESS]
From: [COMPANY LEGAL NAME], a [STATE OF ORGANIZATION] [ENTITY TYPE] (“Company”)
Re: Termination of Employment
II. RECITALS
WHEREAS, Employee has been employed by Company pursuant to that certain offer letter and/or employment agreement dated [DATE OF ORIGINAL HIRE/AGREEMENT] (the “Employment Agreement”); and
WHEREAS, Company has determined to terminate Employee’s employment in accordance with the Montana Wrongful Discharge from Employment Act (“WDEA”) and all other applicable federal and state laws;
NOW, THEREFORE, Company issues this Notice of Termination of Employment (this “Notice”) as follows:
III. DEFINITIONS
For purposes of this Notice, the following capitalized terms shall have the meanings set forth below. Terms defined herein shall have the same meaning wherever used in this Notice.
- “Accrued Benefits” means all earned but unpaid wages, salary, commissions, and accrued but unused vacation or paid time off earned through the Termination Date.
- “Confidential Information” has the meaning assigned to such term in that certain Confidentiality or Proprietary Information Agreement between Company and Employee dated [DATE], or, if none, as defined under applicable law.
- “Termination Date” means the close of business on [EFFECTIVE TERMINATION DATE], unless an earlier date is required by law or mutually agreed upon in writing by the parties.
IV. OPERATIVE PROVISIONS
4.1 Nature of Termination
Company hereby terminates Employee’s employment effective as of the Termination Date for the following reason(s):
[ ] For Cause – Performance or Conduct Deficiencies
[ ] Job Elimination / Economic Layoff
[ ] End of Probationary Period (if within statutory probation period)
[ ] Other: [INSERT DESCRIPTION]
[// GUIDANCE: Under the Montana WDEA, an employee who has completed the statutory probationary period may only be terminated for “good cause,” a bona-fide business reason such as proved misconduct, poor performance, or legitimate job elimination. Insert a concise, fact-specific description here to satisfy the WDEA’s “written notice of reasons” requirement.]
4.2 Final Compensation
(a) Accrued Benefits. In accordance with Montana wage-payment law, Company will pay Employee all Accrued Benefits no later than the next business day following the Termination Date, by [DIRECT DEPOSIT/CASHIER’S CHECK], less lawful deductions.
(b) Expense Reimbursement. Subject to Company policy, bona-fide business expenses submitted with proper documentation by [EXPENSE SUBMISSION DEADLINE] will be reimbursed within [NUMBER] days.
4.3 Benefits & COBRA/State Continuation
(a) Group Health Coverage. Employee’s participation in Company’s group health plan will cease on the Termination Date. Pursuant to federal COBRA (and any applicable Montana “mini-COBRA” continuation), Employee will receive a separate notice from the Plan Administrator outlining rights to elect continuation coverage within the statutory election period.
(b) Other Benefits. Eligibility under all other Company benefit plans (e.g., dental, vision, life, disability, retirement) will terminate in accordance with the governing plan documents.
4.4 Unemployment Insurance
Employee may be eligible to apply for unemployment insurance benefits with the Montana Department of Labor & Industry. Eligibility determinations are made exclusively by the Department, not by Company.
4.5 Company Property & Post-Employment Obligations
(a) Return of Property. Employee shall return all Company Property (defined below) no later than the Termination Date or such earlier time as requested by Company. “Company Property” includes, without limitation, keys, access cards, computers, mobile devices, hard drives, records, files, credit cards, proprietary documents, and any copies thereof.
(b) Confidentiality, Non-Solicitation, and Other Covenants. All obligations under any previously executed confidentiality, invention assignment, non-competition, or non-solicitation agreements remain in full force.
(c) Non-Disparagement. Employee agrees not to make any false, misleading, or disparaging statements relating to Company, its affiliates, or their respective officers, directors, employees, or clients.
4.6 No Additional Compensation
Except as expressly set forth in this Notice or as required by law, Employee will not receive and is not entitled to any additional compensation, bonuses, severance, incentive pay, equity vesting, or benefits following the Termination Date.
V. REPRESENTATIONS & ACKNOWLEDGMENTS
Employee acknowledges and agrees that:
1. Employee has received or will receive all compensation due through the Termination Date, except as expressly provided herein.
2. Employee has not sustained any workplace injury for which Employee has not already submitted a written claim.
3. Employee has not retained and will not retain Confidential Information or Company Property in any form.
4. Employee has had an opportunity to ask questions of Company and to consult independent counsel regarding this Notice.
VI. DEFAULT & REMEDIES
Any breach by Employee of Section 4.5 (Company Property & Post-Employment Obligations) or Section 4.6 (Non-Disparagement) will cause Company irreparable harm for which monetary damages would be inadequate. In the event of such breach, Company will be entitled to injunctive relief, specific performance, and all other remedies available at law or in equity, including recovery of reasonable attorneys’ fees and costs.
VII. DISPUTE RESOLUTION
This Notice, and any dispute arising out of or related to Employee’s employment or termination, shall be governed by and construed in accordance with the laws of the State of Montana, without regard to its conflict-of-laws provisions. The parties consent to exclusive jurisdiction and venue in the state courts located in [COUNTY], Montana.
[// GUIDANCE: The metadata specifies “state_court” and no arbitration or jury waiver. Remove or modify this clause if an arbitration agreement or other forum selection clause controls.]
VIII. GENERAL PROVISIONS
- Entire Agreement. This Notice constitutes the entire understanding of the parties regarding the subject matter herein and supersedes all prior oral or written statements relating to Employee’s termination, except for any surviving restrictive covenant agreements.
- Amendment; Waiver. No amendment or waiver of any provision of this Notice shall be effective unless in writing and signed by both parties.
- Severability. If any provision of this Notice is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.
- Counterparts; Electronic Signatures. This Notice may be executed in one or more counterparts (including by electronic signature), each of which shall be deemed an original, and all of which together shall constitute one instrument.
IX. EXECUTION BLOCK
IN WITNESS WHEREOF, the parties have executed this Notice as of the date first written above.
| COMPANY | EMPLOYEE |
|---|---|
| By: _________ | ______ |
| Name: [AUTHORIZED SIGNATORY] | [EMPLOYEE NAME] |
| Title: [TITLE] | Date: ___ |
| Date: ___ |
[// GUIDANCE:
1. Attachments – If you are offering severance in exchange for a release of claims, attach a separate “Severance and Release Agreement” compliant with the Older Workers Benefit Protection Act, if applicable.
2. Final Pay Check Delivery – Deliver the final paycheck at the termination meeting whenever practicable to satisfy Montana’s “immediate” payment requirement and obtain a signed receipt.
3. COBRA Notice Logistics – Coordinate with the plan administrator to ensure that COBRA or mini-COBRA notices are mailed within the statutory timeframe (generally 44 days from the qualifying event if the employer is the plan administrator).
4. Document Retention – Retain a signed copy of this Notice in Employee’s personnel file for at least the period required by Montana record-keeping regulations (generally three years).
]