A Severance Letter is a formal document sent to an employee who has been laid off, terminated, or otherwise dismissed from their job. It serves to acknowledge the end of the employee-employer relationship and usually contains information regarding the employee’s rights, benefits, and responsibilities after their termination. Additionally, Severance Letters typically provide details on any severance payments due to the employee and often include instructions on how to file for unemployment benefits. A Severance Letter can also serve as a reference letter or act as a bridge between the employer and the now former employee.