Termination Letter for Non-Performance

Organizations are built on the productivity of employees. This is why productivity is valued by organizations. Employees with low productivity are encouraged to improve performance. In efforts to motivate employees and improve productivity, all performance rewards are tied to productivity and good performance. Thus, employees have the incentive to improve performance.

However, despite training, counseling, and motivating policies, some employees continue to underperform. Non-performance of employees can be due to many different reasons. These reasons may or may not have anything to do with the company itself. Here are some reasons for non-performance:

  • Loss of a close one causing sadness and distress
  • Depression and anxiety
  • Tough personal relations or personal life
  • The burden of responsibilities at home
  • Overstressed or overworked
  • Injury or illness
  • Not interested in the job
  • Unable to get along with co-workers
  • Unsatisfied with work responsibilities
  • Unsatisfied with salary and benefits
  • Unsatisfied with organizational culture
  • Wants to do something else
  • Finds work unchallenging/boring/tedious/repetitive

All these reasons may cause an employee to perform poorly. Sometimes non-performance is temporary when an employee is going through a difficult phase. At other times, non-performance may be persistent.

Most organizations help employees if they are not performing well. However, ultimately it is up to the employee how well they utilize organizational resources to build themselves and their professional profile. Managers often talk to employees who are underperforming in efforts to motivate them and if possible accommodate the employee. However, if employees continue to underperform and their periodic performance evaluations are consistently poor, they may be either reprimanded verbally or given a warning letter.

If the employee shows non-performance month after month, the next step is to suspend the employee for a week or more. Finally, if an employee does not show any improvement at all, and continues to underperform the final step is to terminate the employee. To terminate an employee, the employee’s performance records are reviewed by a committee that includes the employee’s direct supervisor.


Every organization wants productive employees. The employment contract gives the right to both the employee and the organization to terminate the contract if the terms of engagement are not fulfilled. Employee performance is one of the conditions in favor of the organization. A non-performing employee can be terminated legally by the organization. Are you looking for a sample letter? If yes, here is a sample termination letter for non-performance.

Sample letter



Subject: Termination letter for non-performance

In accordance with our meeting in the morning, your employment will be terminated by the end of this week.

This was a difficult decision, particularly since you have been part of the organization for the past four years. However, despite repeated counseling and intimation, your performance has deteriorated over the years. After giving you ample time and chances to improve your performance, it is sadly time to let you go.

Your pay shall be calculated till your last working day and paid to you at the end of the month on regular payday. Please submit your employee ID and company equipment to the HR. Let us know if you need any assistance.

We wish you good luck in your future endeavors.

Termination Letter for Non-Performance