Termination Letters, also known as Pink Slips, are short documents that are given to employees who have been fired, laid off, or otherwise released from their employment. Small business owners use Termination Letters to finalize high-risk terminations that might result in legal action. While they are not legally required to complete a termination, they have become standard practice due to their extreme effectiveness at mitigating termination-related lawsuits. So long as the termination is legal and everything in the Termination Letter is accurate, it is unlikely further action can occur.