Dismissal Letter For Poor Performance Template for Saudi Arabia

A Dismissal Letter For Poor Performance is a formal legal document required when terminating an employee in Saudi Arabia due to unsatisfactory work performance. Under Saudi Labor Law (Royal Decree No. M/51), you must follow specific procedures and documentation requirements to ensure the termination is legally valid and protects your organization from potential disputes.

When do you need this document?

You need this dismissal letter when an employee consistently fails to meet performance standards despite receiving proper warnings and opportunities for improvement. This applies when an employee's work quality, productivity, or professional conduct falls below acceptable standards and affects business operations. The document is essential when you've completed performance improvement plans, provided formal written warnings, and given the employee reasonable time to address deficiencies. You'll also need this letter when terminating probationary employees who fail to demonstrate required competencies or when long-term employees show persistent performance decline that cannot be remedied through training or support.

Key legal considerations

Your dismissal letter must demonstrate compliance with Saudi Labor Law requirements for performance-based terminations. You must document specific performance issues, reference previous warnings, and show that you provided reasonable opportunities for improvement. The letter should include clear evidence of how the employee's performance fails to meet established job requirements and company standards. You must also address notice period requirements under Article 77, which varies based on employment duration and contract terms. End-of-service benefits calculations under Article 85 must be accurately stated, including any reductions for cause. The document should reference your employee file maintenance obligations under Articles 71-72, ensuring all performance evaluations and warnings are properly documented.

Legal requirements in Saudi Arabia

Saudi Labor Law mandates specific procedures for performance-based dismissals that you must follow precisely. Under Articles 74, 75, and 80, you must establish valid reasons for termination and provide proper documentation. Ministerial Decision No. 70273/1440 requires formal performance evaluation procedures and comprehensive documentation before termination. You must ensure the employee received adequate training, clear performance expectations, and reasonable improvement timeframes. The letter must be issued on company letterhead with proper authorization signatures and include the employee's full details, position, and employee identification number. You must provide appropriate notice periods unless the poor performance constitutes serious misconduct, and calculate final settlements including unused vacation days, end-of-service gratuity, and any outstanding compensation. The document should be delivered through official channels with proper acknowledgment procedures to ensure legal compliance.