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Sales Rep Termination Letter

Sales representatives that fail to perform as expected threaten the company’s financial position and its reputation. A sales rep termination letter is a good way to end the employment relationship and to document your justification for doing so in writing.

Format and Content

A termination letter should be written on company letterhead by a person with hiring and firing authority in the organization. The content should be limited to the facts that led up to the termination decision along with a mention of the supporting evidence. A statement of termination and the effective date should be given in the first paragraph. Include facts of interest to the employee, such as when and how he or she will receive the final paycheck, information related to benefits, and eligibility under COBRA for the continuation of company insurance in the sales rep termination letter format.


In this sales rep termination letter sample, the employee is fired for a failure to perform. He was hired based on his experience and references; however, his actions have resulted in significant losses for the company. The owner of the company clearly states the reasons the employee is being fired and uses evidence to support the claims.

Dear Stephen:

After careful consideration, I have decided to terminate your employment with my company, Healthy Alternatives Inc. This termination is effective immediately, June 18, 2013. I am letting you go based on the failure to perform clause contained in your employment contract.

When you were hired, you were given a territory with an established customer base. The previous sales representative spent 3 years building and cultivating this territory. When he retired, it was one of the most profitable territories on our company’s map. I entrusted this territory to you based on your experience and the recommendations of past employers.

Over the last 2 months, we have lost 6 important clients due to your failure to keep appointments and the delivery of incomplete orders.The financial cost of the lost accounts is more than $250,000 a year. I personally contacted each client upon the receipt of a business cancellation notice. I have requested a written statement from each detailing the appointments you made and failed to keep as well as the inventory items that were not delivered as promised. Further, you have failed to add a single client during your employment with the company.

I expect you to return all of the company property that is in your possession. Please surrender your company computer and cell phone following this employment termination meeting. I will expect you to return the marketing collateral you have in your possession within 3 business days. You will receive your final paycheck by the close of business on June 19, 2013. You will receive your final commission check at the end of the month after customer accounts have been totaled.

I expect you to honor the non-compete contract you signed when hired. Be advised, I will not tolerate any activity that equates to client poaching.

Bill Ellison

Regards, Bill Ellison, Owner

Healthy Alternatives Inc.