Following an employee's policy violations, misconduct or substandard performance, you may conclude it's time to send the worker a termination letter. How that letter is worded might save you a legal headache.

"When involuntarily separating an employee, a termination letter is appropriate. Some states do not require such a letter, but more information, if well-crafted, often diffuses a former employee's drive toward litigation," said Merrick Dresnin, an HR consultant with MD-HR Consulting Services in Washington, D.C. "People appreciate upfront, honest communication."

Eighteen states require employers to provide a written termination letter or specific forms at the end of a worker's employment, according to Experian Employer Services, a Costa Mesa, Calif.-based HR consulting firm.

Employees who have a contract or a collective bargaining agreement will also need written communication of their employment termination.

"I recommend employers use termination letters in instances where the employment at issue is governed by an employment agreement that has termination procedures," said Sara Jodka, an attorney with Dickinson Wright in Columbus, Ohio. "In those cases, a formal, written notice of termination may be required. If the employment agreement requires a cause for the termination to be identified, I recommend structuring the language of the termination notice along the specific cause provisions in the employment agreement itself or referring to the specific section of the...

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