The Termination Letter For Poor Performance is a crucial HR document used in the Indian business context when an employee's performance fails to meet required standards despite previous interventions. This document is prepared after documented performance issues, formal warnings, and usually following a Performance Improvement Plan (PIP). It must align with Indian labor laws, including the Industrial Disputes Act 1947, and relevant state-specific regulations. The letter should detail the performance issues, reference previous communications, specify the notice period or payment in lieu thereof, and outline the final settlement terms. It serves both as a legal document protecting the company's interests and as a formal communication to the employee about the termination decision and next steps. The document is particularly important in India's employee-protective legal environment, where proper documentation and fair procedure are essential for defending termination decisions.
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1. Company Letterhead and Date: Official company letterhead with complete contact information and date of the letter
2. Employee Information: Full name, employee ID, designation, and department of the employee
3. Subject Line: Clear indication that this is a termination letter
4. Performance Issue Summary: Brief but specific outline of the performance issues that led to this decision
5. Previous Communications Reference: References to prior performance reviews, warnings, improvement plans, and coaching attempts
6. Termination Statement: Clear statement of termination decision and effective date
7. Notice Period/Payment: Details of notice period or payment in lieu of notice
8. Final Settlement: Information about final salary, unused leave encashment, and other dues
9. Company Property Return: List of company properties to be returned and process for return
10. Signature Block: Space for authorized signatory with name and designation
1. Severance Package: Include when additional severance benefits are being offered beyond statutory requirements
2. Post-Employment Restrictions: Include when reminding about non-compete, confidentiality, or other ongoing obligations
3. Outplacement Support: Include when company is offering career transition assistance
4. Benefits Continuation: Include when there are specific arrangements for insurance or other benefits post-termination
5. Appeal Process: Include when company policy allows for formal appeals of termination decisions
6. References: Include when specifying company policy regarding future employment references
1. Performance Review History: Chronological list of performance reviews, ratings, and key issues
2. Warning Letters: Copies of all formal warnings issued
3. Performance Improvement Plan: Copy of PIP and documentation of follow-up meetings
4. Final Settlement Calculation: Detailed breakdown of all final payments and deductions
5. Company Property Checklist: Itemized list of company assets to be returned
Relevant legal definitions
Company
Employee
Notice Period
Basic Salary
Gross Salary
Performance Improvement Plan (PIP)
Final Settlement
Full and Final Settlement
Severance Pay
Company Property
Confidential Information
Performance Standards
Effective Date
Last Working Day
Leave Encashment
Variable Pay
Gratuity
Non-Compete Obligations
Intellectual Property Rights
Exit Formalities
Employee
Notice Period
Basic Salary
Gross Salary
Performance Improvement Plan (PIP)
Final Settlement
Full and Final Settlement
Severance Pay
Company Property
Confidential Information
Performance Standards
Effective Date
Last Working Day
Leave Encashment
Variable Pay
Gratuity
Non-Compete Obligations
Intellectual Property Rights
Exit Formalities
Clauses
Termination Notice
Performance History
Prior Warnings
Notice Period
Final Settlement
Company Property Return
Confidentiality
Non-Compete
Non-Solicitation
Benefits Termination
Full and Final Settlement
Exit Procedures
Post-Employment Obligations
Legal Compliance
Acknowledgment
Dispute Resolution
Reference Policy
Final Dues
Severance Benefits
Intellectual Property Rights
Performance History
Prior Warnings
Notice Period
Final Settlement
Company Property Return
Confidentiality
Non-Compete
Non-Solicitation
Benefits Termination
Full and Final Settlement
Exit Procedures
Post-Employment Obligations
Legal Compliance
Acknowledgment
Dispute Resolution
Reference Policy
Final Dues
Severance Benefits
Intellectual Property Rights
Relevant Industries
Information Technology
Manufacturing
Financial Services
Healthcare
Retail
Telecommunications
Professional Services
Education
Construction
Hospitality
Banking
Insurance
E-commerce
Pharmaceuticals
Automotive
Relevant Teams
Human Resources
Legal
Operations
Management
Administration
Corporate Affairs
Employee Relations
Compliance
Risk Management
Relevant Roles
HR Manager
HR Director
HR Business Partner
Employment Law Specialist
HR Operations Manager
Department Manager
Team Leader
Senior Manager
Managing Director
CEO
Operations Director
Regional Manager
Branch Manager
Unit Head
General Manager
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