Notification Letter for Ending the Service Contract

A contract is basically legally executor agreement between two parties for services or goods. A contract is either written or oral, but the general recommendation is to write a contract having a signature of both parties. A contract is formed when there comes an offer of doing something, consideration, and acceptance of that offer. Consideration is based on exchange amongst parties.

If a person binds a contract with the dealer to build an office, then the dealer builds office in exchange for payment on the agreed price. Once the parties are agreed on an agreement related to contract terms then they both are legally constrained to execute their commitments under the contract. And if they fail to execute commitments, they have violated the contract and can be held accountable in law’s court.

Ending a contract means that the agreement of both parties has been ended legally and they both have executed their commitments following the terms of the contract.

Most of the companies sign contracts with employees on certain terms and conditions and notification of ending the contract is written from the head of a company to the concerned person with whom the contract was signed.

There are a number of reasons for a contract to be ended. Writing a letter to inform the ending of a contract is a suitable way. It leaves a good impression and one can write in detail the reason for the contract to be ended. It remains in the official record and can be used as a written proof that this person has worked under XYZ Company. Following is a format for the notification of ending the contract.

Sample Letter

9th August 20XX

Stephen Anderson
ABC Branch
11-933 Street
(1111) 2345-6788

Subject: Notification of Ending Contract 

Dear Mr. Anderson,

We are sorry to have you notify this that your contract with Rose Stem Tech. in the office of Desktop, Publishing Operator will end on 15th August 20XX. You know that the company has gone through restructure and its points of convergence have been altered. The verdict has been taken to close the ABC department and accordingly all positions in this area including yours would be done away with.

You are therefore required to give back any of the company’s equipment, document, or material with which you had ingress during your contract here.

Along with all employees you are confined by our data protection policies and privacy. Your final payment will be given to you on 25th August 20XX including your negotiated monthly salary as well as repayment for unutilized vacation time.

All the company’s benefits that are given to its employees will end on your last working day but you have this option to resume medical coverage through the CDF plan. In the same way, you can also choose to resume life insurance by oscillating to an individual policy. 

An exit interview will be arranged for you in your last week of the job here. In this meeting, you will be provided particulars related to reformation of aforesaid benefits and you will be affixed with professional reorientation to aid you in a job search.

If you have any queries regarding this, then do not hesitate to ask. We would like to thank you for spending quality time here at Rose Stem Tech. and your contribution will be remembered always. 


John Twain

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