Sample Termination Letter Due to Lack of Work

By | November 13, 2014

Lack of work/funds or a failed project can have dire circumstances on an employee’s job. In the event of either of these happening, employees are laid off even though they may have been working quite well at that position.

The best (and probably the only way) to let an employee know that his services are no longer needed is to write a termination letter to him. A termination letter of this nature should not be harsh as it is not the employee’s fault that the company hasn’t been able to arrange funds. Breaking the news of someone’s termination is a jarring job but employers often have to do this.

A termination letter written to an employee for whom you have no work needs to be direct yet sensitive. Here is a sample for you to take reference from.


Sample Termination Letter Due to Lack of Work


August 15, 2018

Mr. Harley Benedict
Project Officer
Smart Park Equine LLC
738 Alpine Ridge
Wabasha, MN 55637


Dear Mr. Benedict:

It is with great sorrow and regret that I am informing you that you have been laid off from your Project Officer position at Smart Park Equine LLC due to lack of work.

Please let me clarify that this termination is not reflective of your performance. You have been our most dedicated employee since you joined us last year and we place immense credit on your contribution. While the last project you worked on (Equine Conservation) had colossal prospects, it did not lift off very well and our donor agency is now reluctant to release any more funds to us until we come up with a stronger project proposal. At this point in time, a new project proposal means extensive hiring of professionals and we cannot possibly manage that in the budget that we have for the year. In view of this fiscal problem, we have had to shelve Equine Conservation completely.

As detailed in your employment contract, a representative from the human resource department will confer with you to provide you detailed information of your benefits including services of a placement agency that will help you find another job promptly.

Thank you for putting in so much effort. We truly appreciate your efforts and loyalty.


Best regards,

[Sign Here]

Sam Neil
Manager Human Resources
Smart Park Equine LLC
Tel: (555) 555-555