An employment termination letter is a correspondence from an employer to an employee regarding the working relationship. The letter indicates termination of the relationship and outlines the terms of separation. These terms may include a non-compete agreement and information regarding employee benefits and rights. Termination letters often detail the reason for termination. In some cases, it may be necessary for the employer to include specific reasons for termination with dates and examples to support the decision. Employment termination letters are typically drafted by the company's human resources department or by an attorney. The overall purpose of the letter is to protect the employer in case the employee decides to take the matter to court.