Template · Free download
Layoff Letter Template
Four layoff letter samples (position elimination, RIF with severance, furlough, temporary layoff) plus WARN Act, state mini-WARN, and OWBPA checklists.
Sign in with Google below to download the PDF and CSV straight away.
Get your free download
Sign in with Google to unlock the PDF and CSV instantly. No form to fill in.
Free. By continuing you agree to our terms and privacy policy. We record your email and this download; marketing emails only if you tick the box.
What you get
- Four paste-ready letters: position elimination, reduction in force with severance offer, furlough, and temporary layoff with expected recall
- A federal WARN Act test with the exact thresholds from 20 CFR 639 and the DOL employer's guide
- A state mini-WARN table for California, New York, New Jersey, and Illinois
- A worked example of 60-day WARN back-pay exposure for an 80-person layoff
- OWBPA group-termination rules (45-day review, 7-day revocation, age disclosures) and a final pay, COBRA, and unemployment checklist
Template preview
A preview of the structure. Download the PDF or CSV for the complete, ready-to-use version.
When to use this letter (and when not to)
Use a layoff letter when a job ends, or is paused, for business reasons: budget cuts, a closed location, a restructure, lost contracts. The employee did nothing wrong, and the letter should say so plainly. If the separation is for performance or conduct, use the termination letter template instead; its language and documentation needs are different. If you are offering money in exchange for a release of claims, the terms belong in the severance agreement template, which is a separate document the employee signs. This letter tells the employee what is happening; the agreement asks them to agree to something.
Details to confirm before drafting
- Employee name, title, and employee ID
- Site of employment— the single site used for WARN counting, e.g. Reno, NV distribution center
- Type of action— position elimination / RIF / furlough / temporary layoff
- Notice date and separation date— count the days; federal WARN needs 60 calendar days where it applies
Choose the right letter
| Situation | Does employment end? | Pay and benefits during | Use |
|---|---|---|---|
| One role is removed and not refilled | Yes, permanently | Paid through separation date; severance if offered | Letter A |
| Several roles cut at once with a severance program | Yes, permanently | Severance in exchange for a release | Letter B |
| Hours or pay paused for a set period, job kept | No | Unpaid time off; benefits usually continue | Letter C |
| Job paused with a planned recall date | Separated, expected rehire | Unpaid; benefits depend on plan terms | Letter D |
Letter A: Position elimination (permanent layoff)
[Company letterhead] [Date] PERSONAL AND CONFIDENTIAL Dear [Employee name], As we discussed today, [Company name] has decided to eliminate the position of [Job title] in the [Department] team as part of [specific business reason, e.g. consolidating regional customer support into the Austin office]. Your employment will end on [Separation date]. This decision is about the role, not your performance or conduct. Between now and [Separation date], you will [continue working on handover of X / not be required to work, and will be paid your regular salary through that date]. On your final paycheck, dated [date], you will receive your wages through [Separation date] and [number] hours of accrued, unused vacation, paid under [our policy / state law]. Your medical, dental, and vision coverage continues through [last day of the month of separation, e.g. October 31, 2026]. You will receive a COBRA election notice from [administrator name] explaining how to continue coverage after that date. [If severance is offered: We are offering severance of [amount], described in the enclosed Separation Agreement. You have [45 / 21] days to consider it and should read it carefully; we encourage you to consult an attorney.] You may be eligible for unemployment benefits. Information on how to apply in [State] is enclosed. Please return your laptop, badge, and [other equipment] by [date] to [person / prepaid shipping box]. Thank you for your work at [Company name], including [one specific contribution]. If you have questions, contact [HR contact] at [email] or [phone]. Sincerely, [Name] [Title]
Letter B: Reduction in force with severance offer
[Company letterhead] [Date] Dear [Employee name], [Company name] is reducing its workforce by [number] positions across [teams / locations] because [reason, e.g. the loss of the Midwest retail distribution contract, which accounted for 30% of our volume]. Your position of [Job title] is one of the positions affected. Your last day of employment will be [Separation date]. Positions were selected using [criteria, e.g. the functions being discontinued and the sites being consolidated], applied across the [decisional unit, e.g. Operations division]. The enclosed information sheet lists the job titles and ages of employees in that unit who were and were not selected, as federal law requires for group programs. Severance offer. If you sign and do not revoke the enclosed Separation Agreement and General Release, you will receive: - [12] weeks of base pay, [$21,000.00] gross, based on [2] weeks per full year of service ([6] years) at your current weekly rate of [$1,750.00] - Company-paid COBRA premiums for [3] months, through [date] - Outplacement support through [provider] for [90] days You have 45 days from receiving this letter, until [date], to consider the agreement, and 7 days after signing to revoke it. We advise you to consult an attorney before signing. Your final pay, accrued vacation, and COBRA rights do not depend on signing. You will be paid through [Separation date] whether or not you sign. [If WARN applies: This letter is also your notice under the federal WARN Act. See the attached notice for details.] If you have questions, contact [HR contact] at [email] or [phone]. Sincerely, [Name] [Title]
This is a preview — the full template continues in the download.
Sign in above to download the full template.
How to use this template
- 1
Run the WARN test before you draft anything
Count employees at each site and every job loss in any rolling 30-day (and 90-day) window. If federal or state WARN applies, the letter date is set by the notice period, not by your preferred exit date.
- 2
Pick the letter that matches the event
Permanent job loss, reduction in force with severance, furlough (employment continues), or temporary layoff with recall. Using furlough language for a permanent layoff creates WARN and unemployment problems.
- 3
Attach the severance agreement separately
The layoff letter gives notice. The release of claims lives in a separate severance agreement with the OWBPA review and revocation periods and, for group programs, the age disclosure.
- 4
Deliver in a short meeting, then send the letter the same day
Manager plus HR, 10 to 15 minutes, with the letter, the benefits summary, and the unemployment information in hand.
- 5
Log every notice
Record who got which letter, the delivery date and method, and the separation date. You will need this if a WARN or release challenge comes later.
Frequently asked questions
What should a layoff letter include?
The business reason, the fact that the decision is about the role rather than performance, the separation date, final pay timing and PTO payout, the benefits end date and COBRA information, any severance offered and its deadline, unemployment information, equipment return, and an HR contact. If WARN applies, include or attach the WARN notice content.
What is the difference between a layoff and a furlough?
A layoff ends employment, either permanently or with an expected recall date. A furlough keeps the employee on the payroll but unpaid for a set period, and benefits usually continue. Both can qualify for unemployment. A furlough that turns into a layoff longer than 6 months can trigger WARN, so track the dates.
How much notice is required for a layoff?
Federal law requires none for most individual layoffs because employment is at-will. The federal WARN Act requires 60 calendar days for plant closings and mass layoffs at covered employers with 100 or more employees. New York and New Jersey require 90 days, and California and Illinois have their own 60-day laws with lower thresholds.
What is a reduction in force letter?
A reduction in force (RIF) letter notifies an employee that their role is being cut as part of a group reduction. Unlike a single position elimination, it should explain the selection criteria and decisional unit, and if it comes with a severance release for employees 40 and over, it triggers OWBPA's 45-day review period and age disclosure.
Can I pay 60 days' wages instead of giving WARN notice?
WARN does not recognize pay in lieu of notice. In practice, the DOL guide says that paying full wages and benefits for the 60-day period effectively removes any remedy, because liability is capped at 60 days. State laws differ, and New Jersey adds mandatory severance on top, so check state rules first.
Do laid-off employees get severance?
In most US states severance is not required by law; it is offered in exchange for a signed release. New Jersey is an exception for mass layoffs covered by its WARN law, which requires one week of pay per year of service. Contracts, policies, and past practice can also create an obligation.