What is a sample letter for a non-renewal contract?

A sample letter for non-renewal of a contract is an example of the necessary information that needs to be included to notify someone of the end of a contract. Non-renewal letters are most often used in employment situations. However, a letter for non-renewal of contract is also used to notify tenants of the termination of a lease.

The purpose of a non-renewal letter is to outline the conditions of the end of an employment contract or lease. In the case of employment, a non-renewal letter is not the same as firing an employee. Instead, an employer chooses not to renew a contract with an employee, which is similar to laying an employee off.

Generally, sample letters for non-renewal of contract include an introduction, reason for non-renewal, the options available to the recipient and a conclusion. The introduction needs to include specific information about the company, employee or resident, contract terms and the date the current contract ends. A non-renewal letter also needs to mention the reason for non-renewal. Common reasons include poor performance at work, budget restrictions, or the sale of real estate or a business.

A non-renewal letter must mention the options available to the recipient. For example, the non-renewal letter may include options to continue health insurance, information on retirement benefits and a statement regarding an employee's rehire status. In the conclusion of a non-renewal letter, it is best to end the letter cordially by thanking the tenant or employee for completing the current contract and wishing them well on future endeavors.