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The Contract Termination Letter Due To Poor Performance is a crucial document used in Saudi Arabian employment relationships when an employer needs to formally end an employment contract based on documented performance issues. This document must strictly comply with Saudi Labor Law requirements, including proper notice periods, documentation of performance issues, and clear statements of final entitlements. It should be used only after proper performance management procedures have been followed, including formal warnings and opportunities for improvement as required by Saudi labor regulations. The letter serves both as a legal notice of termination and as documentation protecting the employer's interests in case of future disputes. It must include references to specific performance issues, previous warnings, and all relevant termination terms while maintaining professional tone and compliance with local employment laws.

1. Letter Header: Company letterhead, date, reference number, and formal addressing of the employee with their full name and position

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

3. Opening Statement: Direct statement of employment termination with reference to the employment contract and effective date

4. Legal Basis: Citation of relevant Saudi Labor Law articles and contract clauses supporting the termination

5. Performance Issues: Specific documentation of poor performance incidents, including dates and previous warnings

6. Notice Period: Clear statement of the notice period as per Saudi Labor Law Article 85

7. Final Entitlements: Detailed breakdown of final settlement, including salary, end-of-service benefits, and other entitlements

8. Company Property: List of company properties to be returned and process for handover

9. Closing Statement: Professional closing with instructions for next steps

10. Signature Block: Authorized signatory details and company stamp