Freelance. Letter Template. Forced Termination of Cooperation

Freelance. Letter Template "Forced Termination of Cooperation" (Prepaid model, short iterations, emphasis on managed risks)

Subject: Termination of Cooperation on Project [Project Name] | Notification

Email Body:

Dear [Freelancer's Name],

This letter serves to notify you of our decision to terminate our cooperation within the framework of the project [Project Name], effective today, [Date].

Reason for the decision: The work format, based on short iterations and prepayment, requires a high degree of predictability and alignment of results with agreed-upon criteria (Definition of Done). Unfortunately, this synchronization has been lost in recent iterations.

Specific incidents leading to the decision:

· Iteration Breach: The result for the task "[Name of last task/iteration]" was not provided by the agreed deadline [Deadline Date] without prior notice, which blocks the process.

· Quality Non-Compliance: The work delivered for the iteration [Number/date of the previous task] required a volume of revisions far exceeding the scope of a short cycle and did not meet the key criterion from the brief: "[Quote the specific criterion, e.g., 'absence of critical errors in the base scenario']".

Financial Settlement and Risks:

We operate on a prepayment model for short iterations,where the company initially accepts the risks for incomplete work within one cycle. Financial losses are limited to the prepayment for one unfinished iteration (maximum 40 hours of labor), which is a manageable operational risk. Therefore:

1. All completed iterations accepted by us are considered fully paid.

2. The prepayment for the current (unfinished or unaccepted) iteration is non-refundable. We consciously accept this risk as part of our operational model.

Next Steps:

1. Transfer of Materials: In accordance with our [Agreement/NDA] dated [date], we ask you to send all working files and source materials for the project (including the current unfinished task) within 24 hours to [your email/cloud link]. This is necessary for development continuity.

2. Confidentiality: We remind you that the terms of the Non-Disclosure Agreement (NDA) remain in force for the entire established period. All confidential data received within the project must be destroyed by you.

3. Access: Your access to [Jira, GitHub, Figma, etc.] will be revoked today at [Time, e.g., 18:00] MSK.

We thank you for the work done at previous stages. Unfortunately, the format has ceased to be effective, and we are forced to terminate the cooperation.

We wish you success in your future projects.

Sincerely,

[Your Name]

Project Manager,[Project Name]

On behalf of[Company Name]

Key advantages of this approach and wording:

1. Professionalism and De-escalation: The phrase "the company initially accepts the risks" removes 95% of potential conflicts. This is the position of a strong, organized company that does not argue over the cost of one iteration but strictly controls processes.

2. Clear Message on Reasons: The emphasis is shifted not to the freelancer's personality but to a breakdown in the synchronization required for your work model. This is an objective business criterion.

3. Protection of Interests: Despite waiving recovery, you:

   · Demand the transfer of all materials (including for the unfinished task—important for another specialist to continue work).

   · Clearly remind about the NDA.

   · Control the process of revoking access.

4. Maintains Company's Reputation: You demonstrate that your system (short iterations) effectively limits potential losses, and you manage them rather than reacting emotionally. This is a powerful signal for any team.

Result: This template turns a potentially unpleasant situation into a demonstration of your company's process maturity. It closes cooperation quickly, without unnecessary disputes, and allows all parties to focus on the future.