Is a layoff letter required?

Not by federal law for an individual layoff, but many states require written notice of separation or unemployment information, and a letter protects both sides. Check your state.

What should a layoff letter say?

The position, the last day, final pay, severance if any, what happens to health and other benefits, how to return property and who to contact. Keep the reasons short and factual.

Should the letter mention performance?

No. If the layoff is a reduction in force, say the role was eliminated. Mixing in performance confuses the reason and invites disputes.

Do we need a lawyer to review it?

For anything beyond a plain letter, yes, especially with severance, a release or a group layoff. This template is a starting draft, not legal advice.

Layoff letter template

The letter confirms what was said in the conversation: the date, what the person is owed, what happens to benefits and who to call. A lawyer should read your final version.

Dear [employee’s name],

This letter confirms our conversation today. Your position as [their role] at [company] is being eliminated as part of a reduction in force. Your last day of work will be [last day of work].

Final pay: you will receive [final pay and accrued time off].
Severance: no severance pay.
Benefits: A separate notice explains your health coverage and COBRA continuation coverage.

Please return company property, including your laptop and badge, by your last day. You may keep copies of your pay records and benefits documents.

If you have questions about any of this, please contact [hr contact]. We are grateful for your work and sorry that it has come to this. We will provide a neutral reference on request.

Sincerely,
[signed by]

How to get it right

Give the letter after the conversation, not instead of it. Read it again to be sure it matches what was said.
State final pay and the pay date. Many states set when final wages and accrued vacation are due; check your state before you promise a date.
Include the unemployment information your state requires. Many states require a notice or a link on separation.
If you offer severance in exchange for a release, use a lawyer’s agreement. Workers over 40 have review periods (21 days, or 45 in a group layoff, plus 7 to revoke).
Check WARN rules first. A mass layoff may need 60 days’ written notice, and the notices have their own required contents.

Questions about this template

Is a layoff letter required?: Not by federal law for an individual layoff, but many states require written notice of separation or unemployment information, and a letter protects both sides. Check your state.
What should a layoff letter say?: The position, the last day, final pay, severance if any, what happens to health and other benefits, how to return property and who to contact. Keep the reasons short and factual.
Should the letter mention performance?: No. If the layoff is a reduction in force, say the role was eliminated. Mixing in performance confuses the reason and invites disputes.
Do we need a lawyer to review it?: For anything beyond a plain letter, yes, especially with severance, a release or a group layoff. This template is a starting draft, not legal advice.

Read the guide

More templates

Get a plan for the whole search

NextChapter gives you a weekly job search plan, a market reality check for your field, and open jobs matched to you.

Start your free plan