Layoff notice letter template
A layoff letter with the reason, the last day, final pay, benefits and COBRA, and a WARN Act notice section for larger layoffs.
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This is a sample form. Check that the terms and pay match federal and state labor rules and your company policy.
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A general template, not legal advice
This is a general template, not legal advice. Final pay deadlines, PTO payout, required unemployment notices and state WARN laws differ by state. Have HR or a lawyer licensed in your state review a group layoff before the letters go out.
- A WARN notice must also go to the state dislocated worker unit and the chief elected official of the local government, with more detail than this letter. Many states have their own WARN laws with lower thresholds.
- If severance comes with a release and the employee is 40 or older, federal law sets review and revocation periods, which are longer in a group layoff. Use a lawyer-reviewed separation agreement.
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Notice of Layoff
Taylor Kim
Human Resources Director, Contoso Manufacturing Inc.
2400 E Cesar Chavez St
Austin, TX 78702
(555) 010-0010, hr@contoso.example.com
November 2, 2026
Sam Park
Dear Sam Park:
I am writing to let you know that your position with Contoso Manufacturing Inc. is being eliminated and that you will be laid off. Your last day of work will be January 8, 2027.
Contoso is closing its second shift packaging line at the Austin plant because of lower order volume. This decision is based on business needs. It is not a reflection of your performance or conduct.
Notice under the Worker Adjustment and Retraining Notification (WARN) Act. This letter is your written notice under the federal WARN Act. The layoff is expected to be permanent. The layoff is expected to begin on January 4, 2027, and your separation is expected on January 8, 2027. Bumping rights do not apply, which means employees cannot displace other employees to keep a job. For more information, contact Taylor Kim at (555) 010-0010, hr@contoso.example.com.
Your final paycheck will be issued on January 15, 2027 and will include wages through your last day. Unused paid time off will be paid out as required by state law and company policy.
The company is offering severance of two weeks of base pay for each full year of service, paid in a lump sum after you sign a separation agreement and release. Details will come in a separate agreement, and you will have time to review it before you decide.
If you are enrolled in the company's group health plan, your coverage will end on January 31, 2027. You will receive a separate COBRA election notice explaining how to continue that coverage at your own cost. Information about your 401(k) and any other benefits will be sent to you.
You may be eligible for unemployment insurance benefits. Apply through your state's unemployment insurance agency after your last day; the state decides eligibility and the amount.
Please return all company property, such as equipment, badges, keys and documents, by January 8, 2027.
If you have questions about this letter, your final pay or your benefits, please contact Taylor Kim at (555) 010-0010, hr@contoso.example.com. Thank you for your work at Contoso Manufacturing Inc.
| Please note | State rules on final pay and notice vary. Check your state labor department. |
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Sincerely,
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Taylor Kim
Human Resources Director, Contoso Manufacturing Inc.
How to use it
You are writing as the employer. Type your name, "Title, Company" and a contact line, then the employee, the letter date, the last day and the final paycheck date. Add one plain sentence about the business reason and, if there is one, the severance. The letter covers final pay, PTO payout under state law, the date health coverage ends, the COBRA notice that follows, unemployment insurance and returning company property.
If the layoff is covered by the WARN Act, choose the type. The letter then adds a WARN paragraph with the expected start of the layoff, the separation date, bumping rights and who to call. Print one letter per employee, sign it and keep a copy with proof of the delivery date.
Things to watch
Federal WARN applies to employers with 100 or more employees and requires 60 days of written notice before a plant closing or mass layoff. The employer must also notify the state dislocated worker unit and the local chief elected official, and several states have stricter laws of their own. Choose who is laid off by written, job-related criteria and check the list for patterns by age, race or sex before you send letters.
Calculators that go with this
Frequently asked questions
Do I need to give WARN notice?
Federal WARN covers employers with 100 or more employees, not counting part-time workers. It applies to a site closing that puts 50 or more people out of work, or a layoff at one site of at least 50 people who are a third of the workforce there, or of 500 or more, within 30 days. Covered employers must give 60 days of written notice. State laws can have lower thresholds.
Is PTO paid out at the end?
It depends on the state. Some states treat earned vacation as wages that must be paid at separation, while others let the company policy decide. The letter says unused PTO is paid as state law and company policy require, so check both before you fill in the final pay.
Who sends the COBRA notice?
The group health plan administrator sends the COBRA election notice after the employer reports the job loss. Federal COBRA applies to employers with 20 or more employees; smaller employers may be covered by a state continuation law instead. The letter only says the notice will follow.
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