Termination Letter

NOTICE OF INVOLUNTARY TERMINATION OF EMPLOYMENT

(Texas Employment – At-Will)

[COMPANY LETTERHEAD]

Date: [DATE]

To:
[EMPLOYEE NAME]
[EMPLOYEE ADDRESS]

I. DOCUMENT HEADER

1. Parties. This Notice (“Notice”) is issued by [COMPANY NAME], a [STATE OF INCORP.] [ENTITY TYPE] (the “Company”), to [EMPLOYEE NAME] (“Employee”).
2. Effective Date. The termination of Employee’s employment is effective as of [EFFECTIVE DATE] (the “Termination Date”).
3. Governing Law & Venue. This Notice, and any dispute arising from or related to it, shall be governed by and construed in accordance with the laws of the State of Texas, without regard to its conflict-of-laws principles. Exclusive venue shall lie in the state courts located in [COUNTY], Texas.

II. DEFINITIONS

For ease of reference, the following capitalized terms are used in this Notice:

“COBRA” – The Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, and the group health plan continuation coverage requirements thereunder.

“Company Property” – All physical or intangible property of the Company, including but not limited to keys, access cards, identification badges, credit cards, computers, mobile devices, equipment, documents, files, and confidential information (in any form).

“Final Pay” – All wages, salaries, commissions, accrued and unused vacation or PTO (as applicable), and any other compensation due and owing to Employee through the Termination Date.

III. OPERATIVE PROVISIONS

1. Notice of Termination

1.1 Pursuant to the at-will employment relationship, the Company hereby terminates Employee’s employment effective as of the Termination Date. Nothing in this Notice should be construed as altering Employee’s at-will status, which permits either party to terminate the employment relationship at any time, with or without cause or advance notice.

2. Final Compensation and Deductions

2.1 Final Pay will be issued to Employee no later than six (6) calendar days following the Termination Date, in compliance with Tex. Lab. Code § 61.014(a).
2.2 All lawful withholdings, authorized deductions, and required taxes will be deducted from Final Pay.
2.3 If Employee is entitled to any commission or bonus payments, such amounts (if earned, due, and payable under the applicable plan or agreement) will be paid in accordance with their respective terms.

3. Health Insurance Continuation (COBRA)

3.1 If Employee and/or eligible dependents are enrolled in the Company’s group health plan on the Termination Date, a separate COBRA election notice will be furnished by the Plan Administrator within the time period required by 29 U.S.C. § 1166(a).
3.2 Employee will be responsible for the full COBRA premium (inclusive of the 2% administrative fee) should Employee elect continuation coverage.

4. Unemployment Insurance Information

4.1 Employee may be eligible for unemployment benefits administered by the Texas Workforce Commission (“TWC”). Eligibility is determined exclusively by the TWC, not by the Company.
4.2 Further information and the online claim portal are available at: https://www.twc.texas.gov

5. Company Property & Post-Separation Obligations

5.1 No later than the Termination Date (or such later date as the Company may allow in writing), Employee shall return all Company Property to [RETURN LOCATION OR CONTACT].
5.2 Employee acknowledges any continuing obligations under previously executed confidentiality, non-competition, non-solicitation, invention assignment, or similar agreements (collectively, “Restrictive Covenants”), which survive termination in accordance with their terms.

6. Confidentiality of Company Information

6.1 Employee shall not, without the Company’s prior written consent, disclose or use any confidential or proprietary information obtained during employment, except as required by law.
6.2 Nothing in this Section prohibits Employee from (i) reporting possible violations of law to any governmental agency or entity, or (ii) making other disclosures that are protected under whistleblower statutes.

7. No Representations; No Waiver

7.1 The Company makes no representations or warranties regarding Employee’s future employment eligibility, benefits continuation (other than as required by COBRA), or unemployment benefits.
7.2 Failure of the Company to enforce any provision of this Notice shall not be construed as a waiver of that or any other provision.

IV. REPRESENTATIONS & WARRANTIES

Employee represents and warrants that:
a) Employee has not retained, and will not retain, any Company Property or confidential information following the Termination Date; and
b) Employee has not engaged in, and is not aware of, any unlawful conduct during employment that has not been previously disclosed to the Company.

V. COVENANTS & RESTRICTIONS

Employee covenants that Employee will:
a) Cooperate reasonably with the Company in the orderly transition of duties; and
b) Comply with all Restrictive Covenants previously agreed to.

VI. DEFAULT & REMEDIES

6.1 If Employee breaches Sections 5 or 6 above, the Company reserves all rights and remedies available at law or in equity, including injunctive relief, monetary damages, and recovery of attorney’s fees as permitted under Texas law.

VII. RISK ALLOCATION

VIII. DISPUTE RESOLUTION

Any claim, dispute, or controversy arising out of or relating to this Notice shall be resolved exclusively in the state courts situated in [COUNTY], Texas. The parties expressly waive removal to federal court unless federal jurisdiction is mandatory.

IX. GENERAL PROVISIONS

9.1 Entire Agreement. This Notice constitutes the entire understanding between the parties regarding the subject matter hereof and supersedes all prior oral or written communications with respect to such subject matter, except the Restrictive Covenants, which shall remain in full force and effect.
9.2 Severability. If any provision of this Notice is held unenforceable by a court of competent jurisdiction, such provision shall be severed, and the remaining provisions shall remain in full force and effect.
9.3 Amendment. This Notice may be amended only by a writing signed by an authorized representative of each party.
9.4 Electronic Signatures. The parties agree that electronic signatures (including PDF, DocuSign, or similar) shall be deemed original signatures for all purposes.

X. ACKNOWLEDGMENT & EXECUTION

Please sign below to acknowledge receipt of this Notice. Your signature confirms only that you have received this Notice on the date indicated, not that you agree with its contents.