The Salary Reduction Letter Due To Poor Performance is a crucial document used in UAE employment relationships when an employer needs to formally implement a salary reduction based on documented performance issues. This document must strictly comply with UAE Labor Law (Federal Decree-Law No. 33 of 2021) and related employment regulations, particularly regarding wage protection and employee rights. It is typically issued following documented performance reviews, warnings, and improvement attempts, and must include specific details about the reduction, its justification, and implementation timeline. The letter serves multiple purposes: it formally notifies the employee of the salary change, documents the reason for the reduction, ensures legal compliance, and provides a record for potential future reference or dispute resolution. Its use is subject to specific conditions under UAE law, including limitations on the amount of reduction and requirements for proper documentation of performance issues.

1. Letter Header: Company letterhead, date, reference number, and employee details including name, employee ID, and position

2. Subject Line: Clear indication that this is a salary reduction notice due to performance concerns

3. Opening Statement: Professional opening that references previous performance discussions and evaluations

4. Performance Issues: Specific details of performance issues, referring to documented instances and previous warnings

5. Salary Reduction Details: Clear statement of the new salary amount, percentage reduction, and effective date

6. Legal Compliance Statement: Reference to relevant UAE Labor Law provisions and confirmation of compliance

7. Notice Period: Specification of notice period as required by UAE law

8. Acknowledgment Section: Space for employee signature acknowledging receipt and understanding of the letter