When it comes to non-renewal of an employment contract, it is important to follow a proper format to ensure clarity and avoid any confusion. Here are some essential components to include in a non-renewal letter:

1. Date and contact information: Begin the letter by including the current date and your contact information. Make sure to include your name, job title, and address.

2. Addressee`s information: Next, include the addressee`s name, job title, and company address. Addressing the letter directly to the individual whose employment is not being renewed will help to prevent any misunderstandings.

3. Opening statement: Start the letter by clearly stating that the company or organization has decided not to renew the employee`s contract. This should be stated unequivocally and without any ambiguity.

4. Reason for non-renewal: It is essential to provide clear reasons why the contract is not being renewed. Be specific and factual, and avoid language that might be interpreted as discriminatory.

5. Acknowledge contributions: Even if an employee`s contract is not being renewed, it is important to acknowledge their contributions to the company or organization. While the tone of the letter should be professional and formal, including a sentence or two that recognizes the employee`s hard work and achievements can provide some comfort during a difficult time.

6. Closing statement: End the letter with a clear statement that the contract will not be renewed and include any final details regarding the employee`s last day of work, benefits, and other logistical information.

7. Signature and date: Finally, sign and date the letter. Make sure to keep a copy of the letter for the company`s records, and provide a copy to the employee.

By following these essential components, a non-renewal letter can be prepared in a thoughtful and compassionate manner, while still adhering to company policies and legal requirements. A well-crafted non-renewal letter can help to ensure that both the employer and the employee part ways on good terms, and with clarity and transparency.