Termination Letter Template

Template 1 — Termination for cause

Use this when discipline was documented and escalated. Every date referenced must match a document already in the personnel file.

[Company letterhead]

[Date]

[Employee name]
[Address]

Re: Separation of Employment

Dear [Employee name],

This letter confirms that your employment with [Company name] ends effective [date], at [time].

This decision follows the written warnings issued on [date 1] and [date 2] regarding [documented issue], and the final written warning issued on [date 3].

Your final paycheck of [gross amount] covering the pay period [start] through [end], including [X] hours of overtime and [accrued PTO if applicable], will be [delivered / direct deposited] on [date, meeting your state deadline].

Your group health coverage ends on [date]. You will receive a COBRA election notice from [administrator] within [14] days explaining your right to continue coverage at your own expense.

Please return the following company property by [date]: FedEx scanner [#], vehicle keys, fuel card [last 4], uniforms, ID badge, and any customer documentation in your possession.

If you have questions about your final pay or benefits, contact [name] at [phone] or [email].

Sincerely,

[Name]
[Title], [Company name]

Employee acknowledgement of receipt (optional):
Signature: ______________________  Date: ____________

Template 2 — Separation without cause

For route consolidation, a lost CSA, or a reduction in force. State plainly that performance is not the reason — it protects the employee's unemployment claim and keeps you consistent if the role is later refilled.

[Company letterhead]

[Date]

[Employee name]
[Address]

Re: Separation of Employment

Dear [Employee name],

This letter confirms that your position as [title] with [Company name] ends effective [date]. This separation is due to [loss of the CSA / route consolidation / reduction in force] and is not related to your job performance.

Your final paycheck of [gross amount] covering the pay period [start] through [end], including [accrued PTO if applicable], will be [delivered / direct deposited] on [date].

Your group health coverage ends on [date]. You will receive a COBRA election notice from [administrator] within [14] days.

Please return the following company property by [date]: FedEx scanner [#], vehicle keys, fuel card [last 4], uniforms, and ID badge.

[If offering severance:] We are offering [amount] in severance in exchange for a signed separation agreement, enclosed. You have [21] days to consider it and [7] days to revoke after signing.

We appreciate your work with [Company name] and wish you well.

Sincerely,

[Name]
[Title], [Company name]

Termination letter questions

Is a termination letter legally required?

Federal law does not require one, but several states do require written notice of separation — New York, New Jersey, Massachusetts, Connecticut, Georgia, and California among them, with California requiring its own Notice to Employee as to Change in Relationship form. Even where nothing is required, issue one. It fixes the date, the reason, and the final pay in writing on the day it happens, which is worth far more nine months later than anyone's memory of the conversation.

Does FedEx have a termination letter for contractor drivers?

No. Drivers on FedEx Ground routes are employed by the independent service provider holding the CSA, so the letter comes from the contractor on the contractor's letterhead. FedEx can require that a driver be removed from its network — typically after a safety event or a failed background check — but it does not terminate the employment relationship or issue any separation paperwork. That is the ISP's job.

How much detail should the reason include?

One factual sentence that matches the documented record, and nothing more. "Your employment ends following the final written warning issued on March 14 regarding attendance" is enough. Long narratives invite contradiction: every extra sentence is another statement a former employee can dispute or a plaintiff's attorney can compare against the personnel file. If the file does not support the sentence, fix the file problem before you write the letter.

When is the final paycheck due?

It depends entirely on your state and on whether the separation was voluntary. California requires payment immediately at termination, Massachusetts requires it the day of discharge, Texas allows six calendar days, and many states simply use the next regular payday. Missing the deadline triggers waiting-time penalties in several states — in California that is up to 30 days of the employee's daily wage, which frequently exceeds the disputed amount many times over.

Do I have to pay out unused PTO?

It depends on state law and your own handbook. California, Colorado, and several other states treat accrued vacation as earned wages that must be paid at separation and prohibit use-it-or-lose-it forfeiture. Others leave it entirely to policy. Whatever your state allows, your handbook governs if it promises more — so if it says PTO is paid out, it is paid out regardless of what the state minimum is.

Should I hand-deliver the letter or mail it?

Hand-deliver it at the termination meeting with a second manager present, and follow up by mail to the address on file. Have the witness note the date, time, and who was present. If the employee refuses to accept it, note that too — refusal does not affect the separation, and the documented attempt is what matters.

Can a terminated driver still collect unemployment?

Often, yes. Unemployment is generally denied only for misconduct, and the bar for misconduct is higher than most employers expect — poor performance, inability to meet standards, and honest mistakes usually do not clear it. Repeated policy violations after documented warnings can. This is exactly why the progressive discipline record matters: it is the evidence you present at the hearing, and without it the claim will almost certainly be granted.

General information for FedEx Ground ISP contractors, not legal advice. State requirements differ and change. Have an employment attorney in your state review any template before you use it.