Dismissal Letter for Poor Performance | Word & Excel Templates

A dismissal letter, also referred to as a termination letter, is written by an employer to an employee to communicate the reason for termination and notify the employee of their contract termination at the workplace. The letter could be issued due to the employee’s misconduct, poor performance, or disciplinary issues.

The letter is issued when no noticeable improvement is observed in the employee’s work ethic despite being given substantial time and necessary training, assistance, and a suspension period (if applicable) to the employee to make up for the issues highlighted in earlier warnings. The letter serves as official documentation for the employee’s termination.

A dismissal or termination letter can be challenged by the employee in court. Hence, to avoid the legalities and to get discharged of any liability that may arise during a court hearing, the employer tends not to specify the reason for the employee’s termination.

It helps the employer to provide any or all evidence(s) that can prove fair dismissal. Therefore, the employer must consider the country’s employment law and legal procedures before terminating the employee.

When writing a dismissal letter to an employee due to poor performance, the employer may specify the reason for dismissal and support it with evidence(s).

The poor performance can be supported by highlighting the area(s) where the employee’s performance has been falling or lacking. It should also comprise a reference to the meetings conducted, discussions held, and warnings given to address the subject in question.

A dismissal letter comprises the following components:

Reason for dismissal.
Evidence to support the reason (only when sufficient evidence is available to support fair dismissal.
The Date the employee could no longer continue their services to the employer.
Reference of prior meetings, discussions, and warnings on the stated matter.
Elaboration on the way forward – for employees to seek monetary and health benefits. In many companies, employees are entitled to provident funds, old-age benefits, paid annual leaves, and health and life insurance. The way forward is to communicate the procedure for withdrawing funds and availing the insurance services after the dismissal.
Returning the company’s assets—The letter needs to specify that the employee must return all of the employer’s assets, such as ID cards, laptops, documents, or any other resource that belongs to the employer.
The letter’s closing should be formal yet respectful. It should be mentioned that the employee may seek further information from a relevant focal person. However, it should not state that the letter is open to further negotiation.

Sample Dismissal Letter for Poor Performance

[Date]

[RecipDate’s Name]
[Designation]
[Organization]
[Address]

Dear Mr./Ms.,

This letter is formal documentation for your dismissal, effective from [Date]. You can no longer continue your services as [Designation] for XYZ Company. The letter is being issued due to your poor performance over the past six months. The specifics that led to the dismissal are outlined below:

Your KPIs were decided in consultation with you and your supervisor, and they mentioned quarterly fundraising of $[X]. But you have failed to raise the mentioned figure. The performance was monitored and reviewed in the last quarter, and you signed the document (attached) to make up for the lack of commitments in successive quarters.
You were required to optimize the outreach to explore new potential donors, but the donor’s repository has not been updated by you in the last four months, as evident from the attached file.
At XYZ Company, we are liable for ensuring quality services for our clients. It was communicated to you not only during the boarding orientation but also during monthly departmental meetings. You have signed the Quality Compliance Agreement (attached). But, the company has received an average of 12 complaints out of 20 clients you have served in the past two quarters. The matter was discussed with you in the meeting on [Date], and Yandere issued an official warning at the beginning of this quarter, but no noticeable improvement has been observed.

You are requested to return the company’s assets on your last days of employment. You will receive a paycheck of $[X], including your monthly salary and payment for annual leaves that you have accrued a week after the last day of your employment. Your provident fund will be transferred to your account by [Date].

If you want to discuss the details of the exit-clearance procedure further, please contact [Name], Manager HR.

We acknowledge the services you rendered to the XYZ Company for two years.

Sincerely,

ABC

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