Permanent Business Closing Down Letter to Employees

As a business proprietor, there might arise a situation where you have to inform your employees about the closure of your office or store.

While this can be a challenging and delicate task, it is crucial to communicate clearly and succinctly to prevent any confusion or unease among your staff members. Crafting a carefully worded announcement letter can facilitate a smoother process for all parties concerned.

Here are examples of how to write a business closure letter to employees.

TEMPLATE #1

To our valuable employees,

Regrettably, we must inform you that as a result of significant financial losses suffered by our company due to a substantial decline in sales over the last two financial years, we are compelled to cease our operations effective (Date).

Should circumstances demand an earlier or later termination date, you will be promptly informed in writing. The company will make certain that you receive all earned wages and agreed-upon benefits at the time of separation.

This memorandum serves to notify you that, as a result of the closure, your employment and that of other employees within the company will be terminated after a period of thirty (30) days from the date of receiving this communication. A separate letter has been dispatched to the Department of Labor and Employment, apprising them of the impending closure.

Upon completion of all the required clearance procedures pertaining to your separation, you will be duly provided with the final settlement payment and a relieving letter. Please be assured of this arrangement.

Thank you for your hard work and loyalty to our company. We wish you all the best in your future pursuits.

Sincerely,

Name of the Officer

Designation

TEMPLATE #2

April 16, 2024

Mr. Digvijay Singh

Flat 108, Don Society,

58, Gandhi Dham,

Gujarat, 123456 

Dear Mr. Digvijay,

We regret to inform you that due to the significant financial losses our company has experienced in recent months, we have made the difficult decision to cease operations effective June 30, 2024.

As a result of this closure, your employment, along with that of all other employees, will be terminated thirty (30) days from the date of this notice. A formal notification has been submitted to the Department of Labor and Employment regarding this closure.

Please be advised that you will receive separation pay in accordance with the law of the Labor Code upon completion of all necessary clearance procedures.

We wish you the best of luck in all your future endeavors.

Sincerely,

________________________

Priyatam Malhotra

CEO, ABC Limited