The Contract Termination Letter Due To Poor Performance is a crucial document used when an employer in the Philippines needs to formally end an employment relationship due to documented performance deficiencies. This document must strictly adhere to Philippine labor laws, particularly the Labor Code and DOLE regulations, which require employers to follow specific procedures including the two-notice rule. The letter should be issued only after previous performance improvement attempts have been documented and failed. It must include specific instances of poor performance, reference to prior warnings, and demonstrate that the employee was given adequate opportunity to improve. The document serves both as a formal notice of termination and as potential evidence in case of legal disputes, making it essential to include all legally required elements and maintain a professional, fact-based tone throughout.
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1. Header and Date: Company letterhead, date, and reference number of the termination letter
2. Employee Information: Full name, position, department, and employee ID of the recipient
3. Subject Line: Clear indication that this is a termination notice
4. Notice of Termination: Formal statement of employment termination with effective date
5. Performance Issues: Detailed description of specific performance deficiencies and incidents
6. Prior Warnings and Interventions: Documentation of previous warnings, performance improvement plans, and opportunities given
7. Legal Basis: Citation of relevant provisions from Labor Code and company policies
8. Terminal Benefits: Information about final pay, benefits, and clearance procedures
9. Closing: Formal closing with contact information for HR department
1. Non-Compete Reminder: Include when the employee's contract contains non-compete clauses that remain in effect after termination
2. Confidentiality Obligations: Include when dealing with employees who had access to sensitive information
3. Appeal Process: Include when company policy allows for formal appeals of termination decisions
4. Transition Requirements: Include when the employee needs to hand over specific projects or responsibilities
5. Return of Company Property: Include when the employee has significant company assets in their possession
1. Performance Review History: Chronological list of performance evaluations and ratings
2. Warning Letters: Copies of all formal warnings issued
3. Performance Improvement Plan: Copy of implemented PIPs and documentation of follow-ups
4. Exit Procedures Checklist: List of tasks to be completed before last day
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