How to Write a Layoff Letter (Includes Downloadable Layoff Letter Template)

Few events are more difficult for managers or HR professionals than telling someone they’ve been laid off. That’s why any HR department should count on a layoff letter template that checks all the boxes in terms of what to say to individuals in those situations and how to say it.

In this article, we’ll provide you with a downloadable layoff letter template plus helpful tips and insights on creating the best communications possible during those hard times.

What is a layoff letter?

A layoff letter is a written communication through which an organization informs an employee that their employment is to be ended due to a layoff. The letter should be handed or sent to the employee individually – either by email or through a physical copy – and should provide relevant information about the layoff and how they can get started on the next steps of their career.

While Canadian law determines that employers must give laid-off employees a written notice of termination, they’re not required to hand them a full letter with details and specifics about the layoff. However, a layoff letter is seen as a gesture of care, empathy, and recognition toward workers during a difficult time in their lives.

Layoff letter example

Let’s get straight to the Careerminds layoff letter sample for you to download and adapt to your needs. After that, we’ll give more details and tips on how to write your letter.

How can you write a letter for a layoff?

Now that you’ve seen the Careerminds layoff letter template, it’s time to discuss the specifics of how to write it. The layoff letter should include some crucial information, such as the reason for the layoff, termination date, and next steps for the departed employee. Let’s see those elements in detail.

Start with a professional greeting

As in most formal written communications, you want to start your layoff letter by greeting the person you’re talking to. In this case, you want to keep it professional and use common expressions, such as “I hope this letter finds you well,” and address the recipient as “Dear [individual’s name]” at the beginning.

Mention the notice of layoff

As we saw, the notice of termination is mandatory by Canadian law, so you’ll definitely want to include it in your letter. In Canada, the minimum notice employers must give is two weeks. However, if the employee has completed at least three years of service, the notice requirement is equivalent to one week per completed year of employment, up to a maximum of eight weeks of notice.

Explain the reasons for the layoff

Being laid off will raise questions for the dismissed employees, like “what did I do wrong?” or “how did things get to this point?” That’s why your layoff letter should explain the reason for the layoff. Also, since layoffs happen due to factors outside the employee’s control, like an economic downturn or a company restructuring, emphasize that the dismissal is not their fault.

Laying out the reason for layoff is a sign of appreciation and respect for the departed individual, but you don’t need to go into detail. If they have any questions, direct them to the HR representative, as seen in the last portion of the layoff letter template.

List the employee benefits

In your layoff letter, don’t forget to list the benefits available to the departed employee. In Canada, laid-off workers have some benefits according to the law, such as severance pay and employment insurance, but other items could be included in their severance package. The most common examples are extended health benefits (which could last for weeks or months after the last day of work), additional severance pay beyond the amount determined by law, and outplacement services.

If you’re using our template, review which benefits your company is including and remove the ones that don’t apply, or add anything you don’t see there. By the way, if you’re looking for an outplacement partner for your organization, you’ll want to learn more about the benefits of working with Careerminds, which you can find at the end of the article.

End with an appreciation note

Again, this letter should be more than just a means to inform the employee about the layoff. It’s also a sign of respect and care for someone who’s dedicated a significant part of their life to your organization. So, you should finish the layoff letter by appreciating the departed employee’s hard work during their time with you and wishing them success.

Pro tips for writing a layoff letter

There are some best practices that any HR professional or manager should consider when communicating that someone is being laid off. Whether in writing or in person, they should stay professional and show empathy for the individual. Let’s see them in detail.

Be professional and straight-forward

This may sound obvious, but we can’t stress it enough: a layoff is a life-changing event for many, if not most, impacted employees. Therefore, you must keep your communications professional, informative, and direct. Being informal, casual, funny, or even not getting straight to the point will almost certainly be perceived as a lack of respect.

Inform the employee early

Here’s another sign of tact and thoughtfulness toward the dismissed employees. Giving them the information about the layoff in person, before handing them the letter, will show that you care about them on a human level. That’s because most people feel that just being handed out a piece of paper or getting an email is too cold and insensitive in those situations.

Show empathy

Being empathetic should permeate every line of your layoff letter. Behind every piece of information, you must convey that you’re there for the laid-off employees and appreciate their talent and hard work. If you think your letter might be too dry, ask a colleague to read it and give their thoughts on its tone.

Review your message

This is the final step before sending out the layoff letter. Be sure every word and sentence is in the right place, that spelling and grammar are correct, and that all information is accurate and useful. After sending the letters, amending any incorrect information could cause confusion and be misinterpreted by the recipient. And, as in the previous tip, when in doubt, ask someone to give it a final look before hitting “send.”

Writing a layoff letter: final takeaways

As we’ve seen in this article, a layoff letter is more than a document informing someone they’ve been dismissed. While this is its primary goal, it can also serve as an instrument to show empathy and respect for someone who’s given their hard work for your organization and now will go through a challenging transition.

Another sign of care and respect is providing outplacement services in your severance package. If you’re looking for a partner, Careerminds is ready to assist your company and your departed employees with a personalized, result-driven approach to outplacement. Our numbers speak for themselves:

• 95% placement rate
• 80% participant engagement rate
• 99% participant satisfaction rate

If you want to learn more, contact us and ask for a demo with one of our experts!

Rafael Spuldar

Rafael is a content writer, editor, and strategist with over 20 years of experience working with digital media, marketing agencies, and Tech companies. He started his career as a journalist: his past jobs included some of the world's most renowned media organizations, such as the BBC and Thomson Reuters. After shifting into content marketing, he specialized in B2B content, mainly in the Tech and SaaS industries. In this field, Rafael could leverage his previously acquired skills (as an interviewer, fact-checker, and copy editor) to create compelling, valuable, and performing content pieces for various companies. Rafael is into cinema, music, literature, food, wine, and sports (mainly soccer, tennis, and NBA).