This article is written to discuss writing a Without Cause Termination Letter.
When a company has made the decision to terminate an employee Without Cause, it is beneficial to include the reason in the communique, but know that it is not always going to be necessary – this depends on the circumstance and tenure of the employee.
What is a Without Cause Termination? A Without Cause Termination is a dismissal for no significant misconduct such as probationary period, training, cultural fit, competency, organizational restructuring, downsizing due to economic downturn, poor work performance, etc.
Did You Know? Businesses retain the full right to terminate an employee even if it was not caused by any significant workplace misconduct, just long as the termination is exercised legally. Depending on the circumstance or tenure, the employee might be entitled to severance pay. The only time someone is not entitled to severance pay is generally when a termination happens within the employee’s probationary period.
A Probationary Period as defined by the Government of Saskatchewan is within an employee’s first 90 days of employment with a company. Your company may have an “Out-of-Scope” probationary period, which means that the company administers probationary periods differently from the government (i.e. 6 months or 12 months). If this is the case, it is crucial that you specify this in their offer of employment, code of business conduct, company policy, or an employee handbook that the employee(s) sign off on.
The purpose of the Without Cause Termination Letter is to provide advance notice of intent to the terminating employee relating to their dismissal. To protect the company from any future legal proceedings and for the employee’s reference, this letter should be provided with as much notice possible and include information such as, but not limited to:
- Termination Date
- Start Date (if the termination happens within the probationary period)
- Company Probationary Period timeframe (i.e. 3, 6, 9, 12 months)
- Explanation of the reason for the Without Cause Termination (not required, but beneficial)
- Explanation of the next steps
- Information regarding their last pay and when their termination letter will be delivered
We have provided you with 2 downloadable Without Cause Termination Letter Templates and Examples which you can use for your company: “Without Cause Termination Letter” and “Probationary Period Termination Letter.”
Now that you have been introduced to the Without Cause Termination Letter and have been provided with the two templates for your company to use, please stay tuned for part 4 of this series when we discuss the Final Termination Letter, which is a supplementary letter given to the terminating employee with details outlining their final pay.