Contracts of all types need to be terminated at some time by the parties that have entered into an agreement. Businesses and individuals are entering into contracts of different types which are related to jobs, providing services, renting out property and any other requirements which may be necessary.
A termination notice assumes legality when it is created between professionals who are in the business of providing services on a contractual basis. The prime candidates for signing a contract with a company are professionals in the entertainment industry, in the fashion industry, day care services, and even childcare services.
Companies or individuals who contract any of the professionals mentioned above need to sign a contract when they begin obtaining the services. As and when they no longer need the services contracted for they must also ensure that a termination notice is issued to the service provider.
A termination notice is an official declaration from one party of the agreement to the other that his or her services are no longer required. Termination notices gain importance especially with professionals in the entertainment and the fashion industry because of the high compensation which is paid to them.
A contract which is not terminated as determined will make one party liable for expenses for services not rendered or needed. It would put the other party in a position of advantage because he or she would be claiming financial benefits without having to work for it. Either of these instances can be avoided without difficulties if both parties exchange a termination notice between themselves.
People who are unaware about drafting termination notices will do well to study the kind of actions they should be initiating even before they sign a contract. Issuing a termination notice to end the contract is also something which people should be looking forward to learning.
Table of Contents
Key Features Of a Termination Notice
- The date the termination notice is being issued should be mentioned in the letter.
- Regardless of which party is providing the termination notice the names, addresses and contact details of both signatories to the contract must be mentioned in the letter.
- The reasons for the termination should/may also be mentioned.
- The financial implications also need to be mentioned in the letter.
- The date when the termination letter becomes effective cannot be avoided.
The signatories of the contract can include any other information which they consider as necessary in the termination notice.
Example of Termination Notice 1
[Nam Name of the Organization, Address And Contact Details Of the Contractor],
[To Name of the Recipient, Address And Contact Details Of the Termination Notice],
[Designation Of the Recipient],
[Subject: Termination Of Modeling Contract For [Term of Contract]
Our organization is under contract with you presently for promoting our products and we are extremely happy with the results your promotions have delivered.
As part of a cost-cutting measure, we have determined that we can no longer continue with your contract and have therefore decided to issue a termination notice which will be effective from [last date of the contract].
Any financial dues outstanding to you will be paid on your last working day with this organization.
Please be informed that this is just a temporary measure and we will certainly be looking forward to hiring your services sometime in the future.
We wish you all the best with other contractors and are prepared to offer you recommendation letters if needed by anyone.
[signature of the contractor],
[name of the contractor].
Example of Termination Notice 2
[From Name of the Individual, Address And Contact Details Of the Individual Issuing the Notice],
[To Name of The Service Provider, Address, And Contact Details],
[Subject: Termination Notice of Day Care Services],
I have been using the day care services offered by your organization for the past six months to care for my father who was ill and unable to move.
I would like to intimate you that my father passed away on [date] and I therefore no longer need the services you provide with immediate effect. I am aware of my contractual obligations and have therefore included a check for [amount] towards a full and final settlement of the services provided by your organization.
I would not be making a fair assessment of your organization if I didn’t mention that my father was extremely happy with the services you provided which helped him move and lead a better life. I would like to express my gratitude to the fine services provided by the individuals assigned to the task.
I will be looking forward to recommending your organization to my friends and colleagues should they need day care services.
[signature of the individual],
[name of the individual].
Example of Termination Notice 3
[From Name of the Individual, Organization, Designation And Contact Details Of the Individual],
[To Name of the Individual To Whom The Letter Is Being Issued],
[Address & Contact Details Of the Individual],
Dear [Name of the Individual],
[Subject: Response To the Termination Appeal You Had Filed],
I am aware you have been awaiting my response to the termination appeal you had filed. After reviewing your letter we have decided to reject your application for the reasons mentioned below.
This letter is to confirm your termination with our organization because of the inappropriate behaviour you have displayed. Your termination will be effective from the date mentioned in the original letter.
As you are aware that on [date] you were captured by our surveillance cameras shifting property of the organization without authorization and this is the type of behaviour we do not encourage.
You will shortly receive a prepaid envelope to return your company ID and any other property of the organization in your possession. Upon receipt of the property, this organization will forward to you your final payments which are outstanding including any pay for leaves which may be pending.
You may contact the human resources department for any questions you may have regarding this matter.
[signature of the individual signing the letter],
[name of the signatory, designation and contact details]
A termination notice becomes a necessity for all businesses which are involved in providing services in return for financial compensation. Therefore, it is essential that the contract is terminated when the need for the services are no longer present.