Sample letter to terminate payroll services


  • 6 vital steps before terminating an employee for poor performance
  • 11+ Termination of Services Letter Templates – PDF, DOC
  • How to Write an Employment Termination Letter (COVID-19 Templates Included)
  • Termination of Employment, Notice and Pay in Lieu of Notice
  • Letter of Intent to Return to Work
  • 6 vital steps before terminating an employee for poor performance

    Termination of Employment, Notice and Pay in Lieu of Notice Share this: Upon the termination of employment, an employee is entitled to notice or payment in lieu of notice. Employers must be aware of their obligations.

    A failure to comply with the minimum notice standards under the Employment Standards Act can lead to further, increased damages against you.

    The obligations apply to any termination of employment, except where the termination is for just cause or where the employee voluntarily terminates through resignation or retirement. For employers covered by collective agreements that contain provisions respecting the payment of wages upon termination, those collective agreement provisions prevail. However, in certain circumstances it may not be entirely clear whether a termination has occurred, or when the effective date of the termination is.

    Section 1 of the act defines termination as including a layoff other than a temporary layoff. A temporary layoff is a layoff of up to 13 weeks in any period of 20 consecutive weeks, or in the case of an employee with recall rights, a layoff that exceeds the recall period. Once a layoff exceeds this period, it is deemed a termination. An employee who resigns or voluntarily quits his or her employment is not entitled to termination pay or working notice.

    In order to be eligible for termination pay or notice of termination, an employee must have worked at least three consecutive months for the employer. Additional, and often much lengthier, notice periods may still exist in respect of the reasonable notice required at common law. Such notice can amount to one month per year of service, or more. Under the Act, an employer may provide a combination of working notice and termination pay provided that the aggregate amount is at least equivalent to the amounts in the above chart.

    Just cause includes fundamental breaches of the employment relationship, including criminal acts, gross incompetence, willful misconduct or a significant breach of a workplace policy. An employee who has committed minor infractions of workplace rules or unsatisfactory conduct that is repeated despite clear warnings will be held to have been terminated for just cause and is not entitled to written notice or payment in lieu of notice of termination.

    Although this seems fairly straightforward, questions frequently arise as to whether an employee has actually resigned or, alternatively, was dismissed by the employer. There is both a subjective and objective element to the act of quitting: subjectively, an employee must form an intention to quit; objectively, that employee must carry out an act that is inconsistent with further employment.

    Where an employee provides advance notice of an intention to quit, the employer must allow the employee to work through such notice period. If the employer requires the employee to cease working earlier than the effective quit date, the employer may be liable to provide termination pay. You must remain on top of these details. If an employee continues to work past the end of the notice period, prior notice of termination is deemed void and the employment relationship continues.

    In order to meet the obligations under the act, you would have to provide new notice or payment in lieu of notice to terminate an employee who has worked beyond a prior notice period. Changes to employment that are prohibited may include a change in duties or responsibilities, limiting of authority, or a reduction of hours.

    Employees hired under certain arrangements, such as under a definite term contract, are not entitled to notice of termination, or payment in lieu of notice.

    For more information about these exceptions visit the Interpretation Manual — Section See Interpretation Manual — Section 68 — Rules about payments.

    A common issue that arises on termination is whether an employee is entitled to all or a portion of a bonus or incentive pay that they claim to have earned. Whether or not such a bonus payment will be considered wages, and therefore owed to the employee, will depend on the specific terms of the employment contract.

    True discretionary bonuses will generally not be payable. However, if the terms of the employment contract do not clearly provide for sole discretion of the employer, or do not specify that a bonus is only earned if the employee works the entire year for which the bonus is earned, a terminated employee may be able to claim for a bonus payment upon termination.

    For further information concerning termination of employment, notice and pay in lieu thereof, visit Employment Standards Branch — Termination of Employment Fact Sheet and Interpretation Manual — Section 63 — Notice Requirements. The information provided in this article is necessarily of a general nature and must not be regarded as legal advice.

    This article may not be republished without the express permission of the copyright owner identified in the article.

    11+ Termination of Services Letter Templates – PDF, DOC

    Use corrective action, not punishment. When an employee must be disciplined, typically these steps are followed: Verbal counselling Suspension without pay Termination After each step before termination, the employee should be given an opportunity to correct the problem or behaviour. If he or she fails to do so, the final step is taken: termination.

    Step 1: Verbal counselling Verbal counselling is usually the initial step. The purpose of the initial discussion is to alleviate misunderstandings and clarify the direction for necessary and successful correction. Most discipline problems can be solved at this stage if the matter is approached constructively and if the employee can be engaged in seeking solutions.

    Tips for the verbal counselling discussion: Conduct the counselling session in private. Keep the tone low-key, friendly yet firm. Tell the employee the purpose for the discussion. Identify the problems specifically and ensure the employee understands expectations. Have documentation available to serve as a basis for the discussion, but try not to read from a list as this might lead the employee to feel defensive. Seek input from the employee about his or her perceptions of causes of problems.

    Where possible, identify solutions together. If this is not possible, clearly state your desired solution. Be sure the employee understands your expectations; ask them to describe the standard involved and how he or she will behave to correct the problem.

    Let the employee know that possible disciplinary action may follow if the problem is not corrected. Ask for a commitment from the employee to resolve the problem. However, you may want to write a brief statement confirming the subject matter discussed and the agreed-upon course of action to correct the problem. This can be a useful reference later if further discipline is needed. After an appropriate period, be sure to schedule a follow-up meeting with the employee.

    Provide opportunities for two-way feedback and discussion. Let the employee know how he or she is progressing and ask how the new procedures or behaviours are working. Step 2: Written warning If the problem is not resolved, you will need to prepare the written warning. Include in the warning information, responses, and commitments already made in the verbal counselling session.

    Be sure to include the date the verbal discussion took place. A statement of the future, describing your expectations and the consequences of continued failure to correct the problem. This step may be repeated in the future with stronger consequence statements, so be clear on what the next step is. Here are some guidelines for documenting written warnings: Clearly identify the performance issue that needs to be resolved.

    Give the employee the opportunity to propose a solution to the issue with you. Agree on the solution, and document what is going to change. Include a section on how the employer will help the employee change the behaviour. If appropriate, agree on a date when you will review the situation together, and ensure that the performance issue has changed for the better. Ensure that the employee understands the repercussions if the behaviour does not change.

    This must also be documented on the progressive discipline form. Both the employee and the employer should sign this written record of the conversation that outlines the issue, the solution, and the timeline for the change. Give the employee a copy of the written documentation for his or her own records. Follow-up on the agreed-upon date.

    Step 3: Suspension without pay Depending on the situation there are times when it is appropriate to suspend an employee and times when it is not. The rules on suspending employees without pay may depend on the specific situation, and, therefore, it is advised that employers review the BC Employment Standards Act or other provincial employment standards legislation before carrying out a suspension without pay.

    Step 4: Termination If a problem is not resolved after appropriate warning, you may have to terminate an employee. As well, there may be cases when you want to terminate an employee immediately before going through steps 1 to 3. Employment standards legislation in most provinces establishes a three-month probationary period during which an employee can be terminated for any reason, without notice. The only exceptions to termination within the probation period are any reason deemed discriminatory under human rights legislation, such as religious beliefs or nationality.

    After the probationary period, the employer must have just cause for termination or otherwise provide sufficient notice or severance. Just cause normally includes any of the following as grounds for immediate dismissal: Theft, fraud, or embezzlement Working while under the influence of drugs or alcohol Any conduct that threatens the safety of others Gross insubordination Appropriate level of discipline It is important to determine the proper level of discipline in each situation.

    Whether the employee knew the rules and those rules have been consistently enforced on others Whether the employee acknowledges the mistake and shows remorse After considering all of these factors, there still may be times when you believe it is best for the business to terminate an employee, particularly if you determine that a particular person or situation is likely to be a chronic problem.

    Paying the required severance, or termination pay , is a small cost compared to the damage a problem employee can cause. How to terminate an employee If you are going to terminate an employee, you must have all the pertinent documentation in order and follow all the rules. If you do not, you risk legal repercussions for wrongful termination. If you have a human resources department, it is advisable to discuss the termination process with them beforehand. If your business is small and there is no formal human resources function, be sure you follow the employment standards regulations for your jurisdiction.

    If you feel unsure about any rule, you may want to contact a similar business that has a human resource department or the provincial Employment Standards Branch for advice. Regardless of the specific rules for your jurisdiction, you should follow these general steps when terminating an employee: A discussion with the employee must occur before a final determination is reached.

    Inform the employee about the nature of the problem. The employee must be given an opportunity to explain his or her action and to provide information. If the employee provides pertinent information, you must investigate where appropriate. A written notice of termination must be prepared after the discussion and consideration of all available information. When you meet with the employee for the final termination meeting, hold it in a private location where the employee will not have to walk past co-workers afterwards.

    Have a witness or backup present in case the conversation gets heated. Explain how the employee has continued to perform below expectations. Refer to warnings given earlier. Announce the termination. Collect all property of the company, such as keys and uniforms. Inform the employee of any information they need to know, such as when the final paycheque will be ready if not already available, where to hand in keys and uniform, and if and when there will be an exit interview.

    In all termination cases, aim to preserve the dignity of the employee and to have them leave with the feeling of being treated fairly and with respect. Behaviour in the workplace that is undesirable. A legal reason for which an employer is allowed to terminate an employee without any notice or severance.

    Pay for each week of notice a terminated employee is entitled to.

    How to Write an Employment Termination Letter (COVID-19 Templates Included)

    The offer letter allows the candidate to know the majority of the contingencies of the position and the company to decide if they will accept the offer or not. If the candidate agrees to your offer, they will sign the letter and return it back to the company.

    Termination of Employment, Notice and Pay in Lieu of Notice

    It is important to understand that this offer letter is separate from the employee contract and it is not always a legally binding employment agreement. However, It is still a good idea to have a legal professional look over the offer letter before sending it out to a candidate to avoid any legal mishaps.

    What does an offer letter comprise of? An offer letter is comprised of the most important details of the role and company that a candidate considers when accepting a job offer. These include: Company address and hiring manager info Job title Start date and work Schedule Compensation and benefits Company and employee Policies. You will want to begin by putting your company logo in the top corner of the letter or using the official letterhead of your company to demonstrate that it is an official document.

    Job Description - The next step is to briefly describe the role that you are offering at you company and the specifics of the position. Source: Indeed Contingencies- It is important to note any contingencies that may depend on the potential employee formally receiving the job such as filling out important documentation or passing a drug test. Compensation - The most important part for most employees will be the section focused on compensation. It is here where the compensation package must be clearly and accurately explained.

    Include specific details about how much the candidate will be making on an annual or hourly basis, how often they will get paid, and the available payment methods. You can also touch on equity, bonuses, commission structures if applicable to the role.

    Source: Indeed At-will Statement- To prevent any contractual obligations make sure to include an at-will statement that will allow the employee or the company to terminate the employment at any point or any time for any reason. This would be the best time to get legal consultation so that the wording is accurate. Benefits- Here is your chance to attract the employee to signing the offer letter by listing the benefits they will receive by working at your company.

    Be brief because these can be expanded more upon during their on-boarding cycle. Examples include K options, insurance plans, and company culture.

    Expiration Date- When finishing the letter, decide if your company wants to put a deadline on receiving a response. In order to be eligible for termination pay or notice of termination, an employee must have worked at least three consecutive months for the employer.

    Letter of Intent to Return to Work

    Additional, and often much lengthier, notice periods may still exist in respect of the reasonable notice required at common law. Such notice can amount to one month per year of service, or more. Under the Act, an employer may provide a combination of working notice and termination pay provided that the aggregate amount is at least equivalent to the amounts in the above chart.

    Just cause includes fundamental breaches of the employment relationship, including criminal acts, gross incompetence, willful misconduct or a significant breach of a workplace policy. An employee who has committed minor infractions of workplace rules or unsatisfactory conduct that is repeated despite clear warnings will be held to have been terminated for just cause and is not entitled to written notice or payment in lieu of notice of termination.

    Although this seems fairly straightforward, questions frequently arise as to whether an employee has actually resigned or, alternatively, was dismissed by the employer. There is both a subjective and objective element to the act of quitting: subjectively, an employee must form an intention to quit; objectively, that employee must carry out an act that is inconsistent with further employment.

    Where an employee provides advance notice of an intention to quit, the employer must allow the employee to work through such notice period. If the employer requires the employee to cease working earlier than the effective quit date, the employer may be liable to provide termination pay. You must remain on top of these details. If an employee continues to work past the end of the notice period, prior notice of termination is deemed void and the employment relationship continues.

    In order to meet the obligations under the act, you would have to provide new notice or payment in lieu of notice to terminate an employee who has worked beyond a prior notice period. Changes to employment that are prohibited may include a change in duties or responsibilities, limiting of authority, or a reduction of hours.

    Employees hired under certain arrangements, such as under a definite term contract, are not entitled to notice of termination, or payment in lieu of notice. For more information about these exceptions visit the Interpretation Manual — Section See Interpretation Manual — Section 68 — Rules about payments.


    Sample letter to terminate payroll services