Termination Of Contract Due To Poor Performance for United Arab Emirates

Termination Of Contract Due To Poor Performance Template for United Arab Emirates

A formal document governed by UAE Labor Law (Federal Decree-Law No. 33 of 2021) that serves to legally terminate an employment contract based on documented poor performance. This document outlines specific performance deficiencies, references previous warnings or improvement plans, and details the termination process including notice period and final settlement terms. It ensures compliance with UAE employment regulations while protecting both employer and employee rights, including proper documentation of performance issues and adherence to legal notice periods and end-of-service benefit calculations.

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What is a Termination Of Contract Due To Poor Performance?

The Termination Of Contract Due To Poor Performance document is a crucial legal instrument used in the United Arab Emirates when an employer needs to end an employment relationship due to documented performance issues. It must comply with UAE Labor Law (Federal Decree-Law No. 33 of 2021) and should only be used after proper performance management procedures have been followed, including formal warnings and opportunity for improvement. The document typically includes detailed performance issues, references to previous warnings, notice period details, and final settlement terms. It's essential for protecting the employer from potential legal challenges while ensuring fair treatment of employees under UAE law. This document requires careful preparation and should be reviewed by HR and legal professionals to ensure compliance with both federal and free zone regulations where applicable.

What sections should be included in a Termination Of Contract Due To Poor Performance?

1. Company Letterhead and Date: Official company letterhead with full contact details and date of the termination notice

2. Employee Details: Full name, employee ID, position, and department of the employee

3. Subject Line: Clear indication that this is a termination notice

4. Reference to Employment Contract: Details of the original employment contract including date and reference number

5. Performance Issues: Specific documentation of performance deficiencies with dates and examples

6. Previous Warnings: Summary of prior written warnings, performance improvement plans, and opportunities given

7. Legal Basis: Reference to relevant UAE Labor Law articles and contract clauses supporting the termination

8. Notice Period: Clear statement of the notice period as per UAE Labor Law and contract terms

9. Final Settlement: Information about final settlement, including salary, end-of-service benefits, and other entitlements

10. Company Property: Requirements for returning company property and handling confidential information

11. Acknowledgment: Space for employee signature acknowledging receipt of the termination notice

What sections are optional to include in a Termination Of Contract Due To Poor Performance?

1. Garden Leave: Include if the employee is to be placed on garden leave during the notice period

2. Non-Competition Clause: Reference to existing non-compete obligations, if applicable in the original contract

3. Visa and Immigration: Include for expatriate employees regarding visa cancellation procedures

4. Handover Requirements: Detailed handover instructions if the role involves critical responsibilities or projects

5. Appeal Process: Information about internal grievance procedures, if company policy allows for appeals

6. Reference Policy: Company's policy regarding future employment references

What schedules should be included in a Termination Of Contract Due To Poor Performance?

1. Performance Review History: Chronological list of performance reviews and ratings

2. Warning Letters: Copies of all formal warning letters issued

3. Performance Improvement Plan: Copy of any PIPs implemented and outcomes

4. Final Settlement Calculation: Detailed breakdown of final settlement amounts

5. Company Property Checklist: List of company items to be returned

6. Exit Procedures Checklist: Systematic checklist of all exit procedures to be completed

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Genie AI

Cost

Free to use
Relevant Industries

Banking and Financial Services

Technology and IT

Real Estate and Construction

Healthcare

Retail and Consumer Goods

Manufacturing

Professional Services

Education

Hospitality and Tourism

Energy and Utilities

Media and Entertainment

Telecommunications

Transportation and Logistics

Government and Public Sector

Relevant Teams

Human Resources

Legal

Compliance

Senior Management

Operations

Employee Relations

Administration

Department Management

Relevant Roles

HR Director

HR Manager

Legal Counsel

Department Manager

Line Manager

CEO

Managing Director

HR Business Partner

Employee Relations Manager

Compliance Officer

Operations Manager

Division Head

Regional Manager

Branch Manager

Department Supervisor

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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