Termination Letter For Poor Performance Template for the Philippines

A Termination Letter For Poor Performance is a formal document that legally ends an employee's contract due to consistently inadequate work performance. In the Philippines, this document must strictly adhere to labor law requirements to protect both employer and employee rights while ensuring proper documentation of the termination process.

When do you need this document?

You need this letter when an employee's performance remains below acceptable standards despite receiving written warnings, performance improvement plans, and adequate time to correct deficiencies. It's required when progressive discipline measures have failed, performance metrics consistently show substandard results, or when an employee cannot meet essential job requirements after receiving proper training and support. The document becomes necessary when termination is the final step in addressing chronic performance issues that affect business operations or team productivity.

Key legal considerations

The letter must demonstrate compliance with the twin notice rule under Philippine Labor Code Article 297, requiring a first notice detailing specific grounds with opportunity to respond, followed by the final termination notice. You must document all performance deficiencies with specific examples, dates, and measurable standards that weren't met. The letter should reference previous warnings, improvement plans, training provided, and supervision efforts to show good faith attempts at employee development. Include details about terminal benefits such as final pay, unused leave credits, and separation pay if applicable. Ensure the letter maintains professional tone while clearly stating that termination is due to poor performance, not personal issues, to avoid potential discrimination claims.

Legal requirements in Philippines

Under the Philippine Labor Code and DOLE Department Order No. 147-15, you must follow strict procedural requirements for performance-based termination. The employee must receive written notice at least 30 days before termination, specifying performance issues and allowing opportunity to respond or improve. Documentation must show that performance standards were communicated, training was provided, and reasonable time was given for improvement. The termination letter must be served personally or through registered mail, with proof of receipt maintained. You must calculate and specify all terminal benefits according to Labor Code provisions, including proportionate 13th month pay and unused service incentive leave. The letter should reference company policies on performance management and disciplinary procedures to show consistency with established practices. Maintain copies of all performance evaluations, warnings, and employee responses as supporting documentation for potential labor disputes.