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A Termination Letter Due To Poor Performance During Probation is a formal document that enables employers in Saudi Arabia to legally end an employment relationship when an employee fails to meet performance standards during their probationary period. This letter serves as official notice of termination while documenting the specific reasons for dismissal, ensuring compliance with Saudi Labor Law requirements.

When do you need this document?

You need this document when an employee consistently demonstrates poor performance during their probationary period, despite receiving appropriate guidance and opportunities for improvement. This typically occurs within the first 90 days of employment, as stipulated by Saudi Labor Law Article 53. You should use this letter when documented performance issues include failure to meet job requirements, inability to complete assigned tasks satisfactorily, lack of necessary skills or competencies, or failure to integrate effectively with team members. The letter becomes essential when you've provided feedback and support but the employee hasn't shown adequate improvement to warrant continuation of employment.

Key legal considerations

Several critical legal elements must be included to ensure your termination letter is legally sound. You must clearly reference the original employment contract and probation period clause, providing specific details about observed performance deficiencies with dates and examples. The letter should outline any guidance or training provided to help the employee improve, demonstrating that termination is a last resort. You must specify the effective termination date and any applicable notice period, though Saudi Labor Law Article 75 allows shorter notice during probation. Include details about final settlement calculations, including salary, unused vacation days, and any applicable benefits. The letter should also provide clear instructions for returning company property, including equipment, access cards, and confidential materials.

Legal requirements in Saudi Arabia

Saudi Labor Law imposes specific requirements for termination during probation periods. Article 53 establishes that probation periods cannot exceed 90 days unless extended by written agreement between parties, and either party may terminate the relationship during this period. Article 80 outlines legitimate grounds for termination, including poor performance and failure to achieve satisfactory standards. Your letter must comply with Article 64 requirements for maintaining employee files with performance records and evaluations, which provide crucial documentation for the termination decision. According to Article 88, you must provide the employee with a service certificate upon termination, stating their job type, employment duration, and last salary. The termination letter should be written in Arabic or bilingual format if the employee doesn't speak Arabic, and you must ensure all calculations comply with Saudi labor regulations regarding final payments and any applicable benefits or compensation.