The Performance Improvement Plan Termination Letter is a crucial document used in Hong Kong employment contexts when an employee has failed to achieve the required performance improvements during their PIP period. This document represents the final step in a formal performance management process, typically implemented after previous performance discussions, warnings, and a structured improvement plan have not yielded satisfactory results. The letter must strictly comply with Hong Kong employment law, particularly the Employment Ordinance (Cap. 57), and should clearly document the reasons for termination, reference the original PIP, specify notice periods or payments in lieu, and outline all final entitlements. It serves both as a legal record of the termination and as a formal communication tool ensuring all aspects of the employment conclusion are properly documented and communicated.
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1. Letter Header: Company letterhead, date, and reference number
2. Recipient Details: Employee's full name and address
3. Subject Line: Clear indication that this is a PIP termination letter
4. PIP Reference: Reference to the original PIP, including date and key performance issues identified
5. Performance Review Summary: Brief summary of performance during the PIP period
6. Termination Decision: Clear statement of employment termination and effective date
7. Notice Period/Payment in Lieu: Details of notice period or payment in lieu of notice
8. Final Payment Details: Breakdown of final salary, unused leave, and other entitlements
9. Company Property Return: List of company property to be returned and process for return
10. Confidentiality Reminder: Reminder of ongoing confidentiality obligations
11. Closing: Signature block and contact information for HR/relevant department
1. Severance Payment: Include when employee is eligible for severance payment under Hong Kong law
2. Long Service Payment: Include when employee is eligible for long service payment
3. Reference Letter Availability: Include if the company is willing to provide a reference letter
4. Post-termination Restrictions: Include if there are non-compete or non-solicitation clauses to be reminded of
5. Benefits Continuation: Include if there are any benefits that continue post-termination
6. Grievance Procedure: Include if company policy allows for appeals or if required by employment contract
7. Exit Interview: Include if an exit interview is to be scheduled
1. PIP Documentation: Copies of original PIP and performance review documents
2. Final Payment Calculation: Detailed breakdown of all final payments and deductions
3. Company Property Checklist: Itemized list of company property to be returned
4. Handover Document Template: Template for documenting handover of work responsibilities
5. Benefits Summary: Summary of any benefits and their termination dates
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