Sample Layoff Letter
A convenient sample letter for use in nonprofit layoff situations when/if they become necessary.
A sample letter which could be used if a WARN notice is not required.
It’s a good idea to seek advice from a professional due to the varying nature of the layoff situations. If you are considering laying off an employee who is on a protected leave, be sure to consult a labor law professional.
This is a sample letter which could be used if a Worker Adjustment and Retraining Notification (WARN) notice is not required; generally WARN applies to layoffs of 1/3 or more of the staff or 50 employees at one time. If you have a union contract, be sure to check its provisions for layoffs.
Date:____________________________
To:______________________________
Due to reductions of funding (or other situation) our organization finds it necessary to eliminate various jobs. Unfortunately, your position is affected by this reduction in force. Your last day of employment will be ___________.
- 1. If applicable, your medical benefits will be paid through ______________ and you will receive a COBRA notice addressing the continuation of those benefits.
- 2. If applicable, you should request reimbursement for all eligible organizational expenses as soon as possible, in order to expedite reimbursement for those expenses.
- 3. For unemployment insurance benefits, you can contact the state department for unemployment insurance.
- 4. Your final check includes payout for accrued but unused vacation. [Note: check to see if either state law or your personnel handbook requires payment of accrued leave benefits at the time of layoff. If it does not, you can issue the accrued benefit check a week later, for example, but specify the timing in this letter.]
- 5. [If severance pay will be given to the employee:] With your final check you will receive a Release and Severance Agreement. When you return this signed to the HR Department, you will receive a check for severance pay of $_____.
We are sorry that this reduction in force is necessary. This layoff is (permanent/temporary until ________). We will be talking to each employee individually. Please don’t hesitate to contact _______ if you have questions.
See also:
You might also like:
- Innovative Leadership — Culture Doesn’t Have to Eat Strategy: Tending to Human Factors During Strategic Planning
- Insider Newsletters: An Easy Way to Keep Your Board in the Loop and Engaged
- An Easy-to-Use Accounting Procedures Manual Template
- Five Years and Growing: How One Nonprofit Built a Sustainable, Collaborative Mission
- Measure What You Value: Designing a Values-based Performance Appraisal System
You made it to the end! Please share this article!
Let’s help other nonprofit leaders succeed! Consider sharing this article with your friends and colleagues via email or social media.
About the Author
Pamela Fyfe is an Employment Risk Manager for the Nonprofits Insurance Alliance. In her position she helps nonprofits avoid potential employment claims and reduce the possibility of future claims. Before joining the Nonprofits Insurance Alliance Group, she practiced employment law for more than 25 years — representing management in wrongful termination, discrimination and sexual harassment cases. She admits to possibly having sneaked online at work to see her first grandchild — Mara Adeline — who lives in London.
Articles on Blue Avocado do not provide legal representation or legal advice and should not be used as a substitute for advice or legal counsel. Blue Avocado provides space for the nonprofit sector to express new ideas. The opinions and views expressed in this article are solely those of the authors. They do not purport to reflect or imply the opinions or views of Blue Avocado, its publisher, or affiliated organizations. Blue Avocado, its publisher, and affiliated organizations are not liable for website visitors’ use of the content on Blue Avocado nor for visitors’ decisions about using the Blue Avocado website.
I AM A STUDENT… I FIND THIS LETTER VERY HUSH AND SURELY THE PERSON WHO'LL BE RECEIVING THIS LETTER IS GOING TO HAVE A HEAST ATTACK.. I THOUGHT WHEN LAYING OF STUFF SHOULD BE POLITE BUT THIS ONE IS THE OPPOSITE. TRY TO REVIEW THE PERSON WHO'LL BE READING THIS, HOW WOULD THAT PERSON FEEL WHEWN DELIVERING SUCH BAD NEWS!!! THESE ARE BAD NEWS AND THEY SHOULD STRAIGHT TO THE POINT BUT THE WORDS SHOULD AT LEAST BE PAINLESS
I just want to remind you that you are a STUDENT. When you begin working in the ‘real’ world, you will understand that people don’t treat you with the kid gloves your parents do. Just to give you a bit of schooling, the reason for committing the above information to paper is to cover the company from a legal standpoint. If your letter is written with heart and all nicey-nice and lovey, good luck defending your decisions for layoff in a court of law. There is usually a CONVERSATION with the person advising them that they are being laid off. The letter serves, not only to cover the company legally (again, why it’s not written with roses and sunshine), but ALSO for the person to refer to to know exactly what they have/will be getting after they’ve left the office.
I just want to remind you that you are a STUDENT. When you begin working in the ‘real’ world, you will understand that people don’t treat you with the kid gloves your parents do. Just to give you a bit of schooling, the reason for committing the above information to paper is to cover the company from a legal standpoint. If your letter is written with heart and all nicey-nice and lovey, good luck defending your decisions for layoff in a court of law. There is usually a CONVERSATION with the person advising them that they are being laid off. The letter serves, not only to cover the company legally (again, why it’s not written with roses and sunshine), but ALSO for the person to refer to to know exactly what they have/will be getting after they’ve left the office.
I have been a Financial Manager for a little over 20 years, although I do agree with the information that you have in this letter but it does sound very hard, like, now here is your letter now get the hell out of here. We have the same information but set in a different tone. Also your repsonse that you gave to the student was very mean and that is not advertising to someone like me that may have used your services in the future. I agree that when she gets out here in corporate they are not as rosey but alot of them are not as cut throat either.
I have been a Financial Manager for a little over 20 years, although I do agree with the information that you have in this letter but it does sound very hard, like, now here is your letter now get the hell out of here. We have the same information but set in a different tone. Also your repsonse that you gave to the student was very mean and that is not advertising to someone like me that may have used your services in the future. I agree that when she gets out here in corporate they are not as rosey but alot of them are not as cut throat either.