The Termination Letter For Poor Performance is a crucial document used when an employer in Saudi Arabia needs to formally end an employment relationship due to documented performance issues. It is essential for ensuring compliance with Saudi Labor Law, particularly Royal Decree No. M/51, which requires specific procedures for performance-based terminations. The document should only be used after proper performance management procedures have been followed, including documented performance issues and formal warnings. It must include references to specific incidents, previous warnings, improvement opportunities provided, and clear details about final settlements and notice periods. This letter serves multiple purposes: it officially communicates the termination decision, provides a legal record of the termination process, and outlines all necessary information regarding the end of employment relationship, including final entitlements and obligations.
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1. Letter Header: Company letterhead, date, reference number, and formal addressing of the employee including their full name and employee ID
2. Subject Line: Clear indication that this is a termination notice
3. Opening Statement: Formal statement declaring the termination decision and effective date
4. Performance Issues: Detailed description of the performance issues that led to termination, including specific incidents and dates
5. Previous Warnings: Reference to previous warnings, improvement plans, and opportunities provided to enhance performance
6. Legal Basis: Citation of relevant articles from Saudi Labor Law supporting the termination
7. Notice Period: Statement of notice period or payment in lieu of notice as per Saudi Labor Law
8. Final Settlements: Information about final salary, end-of-service benefits, and other entitlements
9. Company Property: Instructions regarding the return of company property and handling of confidential information
10. Closing: Formal closing statement, including contact information for HR department
1. Exit Interview: Include if company policy requires an exit interview process
2. Non-Compete Reminder: Include if employee is bound by non-compete agreements
3. Handover Instructions: Include if employee needs to transfer ongoing projects or responsibilities
4. Appeal Rights: Include if company policy allows for appeals of termination decisions
5. Healthcare Extension: Include if applicable under company policy or Saudi labor regulations
6. Reference Policy: Include statement about company's policy on providing future references
1. Performance Review History: Copies of relevant performance reviews and assessments
2. Warning Letters: Copies of all formal warnings issued
3. Improvement Plan Documentation: Records of performance improvement plans and outcomes
4. Final Settlement Calculation: Detailed breakdown of final payment including salary, benefits, and deductions
5. Company Property Checklist: List of company items to be returned
Relevant legal definitions
Clauses
Relevant Industries
Banking & Financial Services
Technology
Manufacturing
Retail
Healthcare
Education
Construction
Professional Services
Telecommunications
Energy
Real Estate
Hospitality
Transportation & Logistics
Media & Entertainment
Consumer Goods
Relevant Teams
Human Resources
Legal
Compliance
Employee Relations
Senior Management
Operations
Administration
Relevant Roles
HR Manager
HR Director
Department Manager
Line Manager
HR Business Partner
Legal Counsel
Compliance Officer
Employee Relations Manager
HR Operations Manager
Chief Human Resources Officer
Department Head
Regional Manager
General Manager
Managing Director
CEO
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