The Salary Reduction Letter Due To Poor Performance is a critical document used in Philippine employment contexts when an employer needs to formally implement a reduction in an employee's compensation due to documented performance issues. This document must be carefully crafted to comply with the Labor Code of the Philippines and DOLE regulations, ensuring that the reduction is justified, properly documented, and maintains compliance with minimum wage requirements. It should be used only after proper performance documentation, warnings, and improvement opportunities have been provided to the employee. The letter typically includes specific performance issues, the amount of reduction, effective date, and may also outline a performance improvement plan. It serves as both a legal record and a formal communication tool, requiring careful consideration of labor laws, employee rights, and proper documentation procedures.
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1. Letter Header: Company letterhead, date, and formal addressing to the employee including their name, position, and department
2. Subject Line: Clear indication that this is regarding salary adjustment due to performance concerns
3. Performance Issues: Specific documentation of performance deficiencies, including dates, incidents, and previous warnings or discussions
4. Legal Basis: Reference to relevant company policies, employment contract provisions, and applicable laws that permit such action
5. Salary Reduction Details: Clear statement of the current salary, the amount of reduction, and the new salary amount, ensuring compliance with minimum wage requirements
6. Effective Date: Specific date when the salary reduction will take effect
7. Acknowledgment: Space for employee signature acknowledging receipt of the notice and date
1. Performance Improvement Plan: Details of specific targets and timeline for improvement, used when the company wishes to provide a structured path for performance enhancement
2. Probationary Period: Terms of a probationary period if applicable, including duration and review process
3. Appeal Process: Information about the employee's right to appeal the decision and the process for doing so
4. Alternative Options: Other options available to the employee, such as transfer to a different position, included when such alternatives exist
5. Benefits Impact: Explanation of any changes to benefits resulting from the salary reduction, if applicable
1. Performance Review Documentation: Copies of relevant performance reviews, warnings, or improvement notices
2. Comparative Salary Information: Documentation showing the old and new salary structures, and confirmation of compliance with minimum wage requirements
3. Meeting Minutes: Records of performance discussion meetings and warnings issued
4. Performance Metrics: Specific data or metrics showing performance deficiencies
Relevant legal definitions
Clauses
Relevant Industries
Banking and Financial Services
Information Technology
Manufacturing
Retail
Healthcare
Education
Professional Services
Telecommunications
Construction
Hospitality
Business Process Outsourcing
Real Estate
Transportation and Logistics
Relevant Teams
Human Resources
Legal
Compliance
Employee Relations
Compensation and Benefits
Labor Relations
Performance Management
Administration
Finance
Operations
Relevant Roles
Human Resources Manager
Legal Counsel
Compliance Officer
HR Business Partner
Compensation and Benefits Specialist
Employee Relations Manager
Department Manager
Line Manager
Supervisor
HR Director
Chief Human Resources Officer
Labor Relations Specialist
HR Administrator
Performance Management Specialist
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