Termination Letter for Violation of Company Policy

In order to implement office norms and policies, it is important to sometimes take painful steps such as terminating employees who are in violation of company policy. Only if the rules and policies are implemented stringently, will any organization progress. Failure to implement company policy will lead to daily struggles and the organization will be unable to achieve its actual goals.

Therefore, it is important to use both soft and hard approaches to put company policies into effect. The soft approach is to create awareness among employees about the company policy and help them conform to the organizational culture. The hard approach includes punitive measures when someone violates the company policies or tries to disrupt organizational culture. Punitive measures include warnings, verbal reprimands, and disciplinary actions. Disciplinary actions include suspension with pay, suspension without pay and termination.

Termination is the most severe of all punitive measures. It is only used for serious situations where an employee severely misbehaves; fails to remedy his/her actions; shows consistent absenteeism and poor performance, or violate company policy. There are many instances that construe a violation of company policy. These include:

  • Taking cash from the cash register
  • Recording expenses without receipts or proof of expenditure
  • Accessing company accounts
  • Spending more than the authorized amount
  • Accessing restricted data
  • Accessing another person’s computer
  • Divulging classified information to a client or anyone not authorized to have that information
  • Espionage
  • Fraudulent behavior
  • Deliberately going against supervisor’s orders
  • Damaging a company’s reputation or causing to lose a huge client
  • Working secretly for a competing organization as well

There are many other actions that can be added to a violation of company policies. The above-mentioned violations are serious in nature and often lead to immediate termination as most companies adopt a zero-tolerance policy on these. Of course, a disciplinary committee meets to discuss the violation and then makes a decision. Employees engaging in such violations are asked to meet with the committee and given a chance to explain, accept or deny the charges. Later they also receive a formal termination letter.

The termination letter specifies when the employee is to be terminated and the detailed reason for termination. The employee may then challenge the termination either in court or out of court if he/she disagrees.

Nevertheless, writing a termination letter is painful and difficult. Here is a sample termination letter for violation of company policy that you can easily modify for your organization.

Sample letter



Subject: Letter of termination

As per our discussion today, you are hereby terminated from [enter company name] for the cause. The termination is effective immediately.

Your employment contract has been terminated because you were in gross violation of company policy. Despite knowing the company policies, you divulged confidential information to an external client. This cost the company to not only lose the client but also damaged the company’s reputation in the industry.

Your justifications in the meeting earlier today were groundless and unconvincing. You are to submit your employee card, and company-owned equipment to the HR before leaving. Your final pay will be calculated until today and paid to you at the end of the month. You may make arrangements to pick your pay cheque or the company can mail it to you on an address you provide.

Please inform us if you need any assistance.

Termination Letter for Violation of Company Policy