This document template is designed for situations where an employer in Saudi Arabia needs to terminate an employee's contract due to poor performance. The Termination Due To Poor Performance letter must be carefully structured to comply with Saudi Labor Law requirements, including documentation of performance issues, previous warnings, and improvement opportunities provided to the employee. It should be used only after proper performance management procedures have been followed and documented, including formal warnings and opportunity for improvement. The document includes essential elements such as notice periods, final settlement calculations, and end-of-service benefits as required by Saudi law. It's crucial for protecting both employer and employee rights while ensuring the termination process follows local legal requirements and proper documentation standards.
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1. Letterhead and Date: Company letterhead with full contact details and date of the termination notice
2. Employee Details: Full name, employee ID, position, and department of the employee
3. Subject Line: Clear indication that this is a termination notice
4. Performance History: Documented history of poor performance, including dates and specific instances
5. Previous Warnings: Reference to all prior written warnings, their dates, and the issues addressed
6. Legal Basis: Citation of relevant articles from Saudi Labor Law justifying the termination
7. Termination Decision: Clear statement of termination decision and effective date
8. Notice Period: Specification of notice period or payment in lieu of notice
9. Final Settlements: Information about final salary, end-of-service benefits, and other entitlements
10. Company Property: Requirements for returning company property and resolving outstanding matters
11. Signature Block: Space for authorized signatory's name, title, and signature
1. Transition Requirements: Include when handover of work or documents is required before departure
2. Non-Compete Reminder: Include if the employee is bound by non-compete obligations
3. Confidentiality Obligations: Include if there are specific confidentiality requirements post-termination
4. Appeal Process: Include if company policy allows for internal appeals of termination decisions
5. Outstanding Loans: Include if there are any outstanding loans or advances to be settled
6. Medical Insurance: Include if there are specific arrangements regarding continuation or termination of medical benefits
1. Performance Review Summary: Detailed summary of performance evaluations and issues
2. Warning Letters: Copies of all previous warning letters issued
3. Final Settlement Calculation: Detailed breakdown of final payment including salary, benefits, and deductions
4. Handover Checklist: List of items and responsibilities to be handed over before departure
5. Exit Procedures: Checklist of administrative procedures for processing the termination
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