Terminating an employee is never fun. As a small business owner you have built up a relationship with the employee. You may also have fears of unfair discrimination claims or increased unemployment insurance premiums. In order to protect the business, it is good to document the ground for termination (just like pre-termination discipline). A termination letter can be a relatively easy way for the business to outline all of the reasons for termination. The reasons can vary, depending on your business and your employee handbook. We have provided a sample to help your business draft its own termination letter.