The Performance Improvement Plan Termination Letter is a crucial document used in UAE employment relationships when an employee has failed to meet the performance expectations outlined in a previous Performance Improvement Plan. This document must comply with UAE Federal Decree-Law No. 33 of 2021 and related ministerial resolutions, particularly regarding termination procedures and notice periods. The letter serves as official documentation of the termination decision, incorporating references to prior performance improvement attempts, evaluation outcomes, and specific terms of the employment conclusion. It should be used only after a formal PIP process has been completed and documented, and when the employee has failed to achieve the required performance improvements despite being given adequate support and time. The document includes essential information about notice periods, final settlements, and post-employment obligations, all structured to meet UAE legal requirements.
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1. Letter Header: Company letterhead, date, reference number, and employee's full details including designation and employee ID
2. Subject Line: Clear indication that this is a termination letter following Performance Improvement Plan
3. Reference to PIP: Details of the Performance Improvement Plan including date issued and duration
4. Performance Review Outcome: Summary of performance evaluation during PIP period and failure to meet required improvements
5. Termination Decision: Clear statement of employment termination decision with reference to relevant UAE Labor Law provisions
6. Notice Period: Specification of notice period as per UAE Labor Law and last working day
7. Final Settlement: Information about end-of-service benefits, final salary, and other entitlements
8. Company Property: Instructions regarding return of company property and handover of work
9. Closing: Professional closing statement, signature block for authorized signatory
1. Garden Leave: Include when the company wishes to place the employee on garden leave during the notice period
2. Non-Competition Reminder: Include when employee is bound by existing non-compete clauses
3. Reference Policy: Include when specifying the company's policy regarding future reference requests
4. Legal Rights Reservation: Include when the company needs to explicitly reserve legal rights regarding confidentiality or other obligations
1. PIP Summary Report: Detailed summary of performance issues and improvement targets from the original PIP
2. Final Settlement Calculation: Breakdown of all financial entitlements including salary, notice period, gratuity, and other benefits
3. Handover Checklist: List of company properties to be returned and pending tasks to be handed over
4. Exit Clearance Form: Standard company exit clearance form listing all departments that need to provide clearance
Relevant legal definitions
Clauses
Relevant Industries
Banking & Financial Services
Technology
Healthcare
Retail
Manufacturing
Professional Services
Construction
Education
Hospitality
Real Estate
Energy
Telecommunications
Transportation & Logistics
Media & Entertainment
Relevant Teams
Human Resources
Legal
Employee Relations
Talent Management
Operations
Performance Management
Relevant Roles
Human Resources Director
HR Manager
HR Business Partner
Employee Relations Manager
Legal Counsel
Department Manager
Line Manager
Supervisor
Head of Department
Chief Human Resources Officer
HR Operations Manager
Talent Management Director
Performance Management Specialist
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