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A termination letter is a formal notice from an employer to inform an employee that they are being dismissed from their job. A termination letter is considered as an official notification from an employer to an employee which informs their termination from the job.A termination letter should be addressed to the employee and include the reason for the termination. If you need to fire or lay off someone, it should always be done face-to-face. Summary dismissal for serious misconduct has immediate effect.