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A Dismissal Letter for Poor Performance informs an employee that they are being dismissed due to their poor performance. In other words, employers should use Poor Performance Dismissal Letters when they are letting an employee who is underperforming go. Dismissal Letters for Poor Performance should only be used after prior written warnings have been issued. For more information, read Dismissal for disciplinary reasons.
This document is GDPR compliant.
Use this Dismissal Letter for Poor Performance:
to confirm that an employee is being dismissed due to their unsatisfactory performance
only after the employee has received prior disciplinary warnings
for employees who are protected from unfair dismissal
only for employees based in England, Wales or Scotland
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Dear ,
Re: Confirmation of dismissal for poor performance
Following the disciplinary hearing held on the decision has been taken to end your employment for poor performance. We refer to the following warnings that your performance was unsatisfactory:
The aspects of your work which fall below an acceptable standard are as set out in previous warnings, and our letter of . In particular these include: .
You have until to appeal against this decision. To do so, please write to , giving your full reasons for contesting the decision. Any appeal will be held in accordance with our disciplinary policy and procedure and will not halt your dismissal but, if it is upheld, you will be reinstated with retrospective effect and with no loss of pay.
You will be paid in lieu of any accrued but untaken holiday, less normal deductions of tax and National Insurance contributions.
Please follow the usual procedures for claiming any expenses, and provided they are reasonable and justified and evidenced in the usual way, they will be paid in full. You are required to hand back in good condition any company property as directed by us, including confidential company information and documentation in hard copy or electronic form before your employment ends or within two working days of the date of this letter, whichever is later.
Please contact if you have any questions or need any special arrangements to be made.
We treat personal data collected during the disciplinary procedure in accordance with our data protection policy. Information about how your data is used and the basis for processing your data is provided in our employee privacy notice and other policies.
Yours sincerely,
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Confirm the outcome of a performance-related disciplinary hearing
Set up poor performance disciplinary appeal hearing
Set out how disciplinary issues will be handled
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This Dismissal Letter for Poor Performance template covers:
why the employee’s performance was deemed unsatisfactory
the previous written warnings (including the final warning)
the employee’s termination date
whether the employee’s notice period will be worked or the employee will be paid in lieu of notice
specific arrangements for holiday pay and the employee’s final salary payment
the requirement to return the employer’s property and information
the right to appeal against the dismissal
Whenever you dismiss someone, you need to follow a fair and proper disciplinary process. Making and serving a formal Dismissal Letter for Poor Performance ensures you follow such a proper disciplinary process when dismissing an employee. Outlining in writing the reasons for dismissal protects the employer against the risk of unfair dismissal claims and reduces the likelihood of other disputes in relation to the dismissal decision. It also ensures that the employee fully understands why they are being dismissed.
For more information, read Dismissal for disciplinary reasons.
Poor performance refers to an employee's inability or failure to meet the standards required in their job. Examples of poor performance include an employee’s:
low productivity or output (eg if an employee consistently fails to meet their targets or deadlines)
missing of deadlines
poor quality of work (eg if an employee’s work is consistently below expected standards, contains errors or mistakes, or fails to meet the required specifications)
wasting work materials
unwillingness or inability to follow instructions
unwillingness to take responsibility
Written warnings are formal reprimands given to employees. The purpose of a disciplinary warning is to formally notify an employee of the formal disciplinary action taken against them. A disciplinary warning includes:
details of the disciplinary issue (eg describing the employee’s performance and why it is deemed unsatisfactory)
the steps taken by the employer to address the issue
what steps the employee should take to address the issue
the consequences of the employee failing to change their behaviour
Generally, employers should give employees at least 2 written warnings before dismissing them. A Poor performance outcome letter should be used to issue written warnings.
For more information, read Disciplinary warnings.
Dismissal for poor performance should be the final step of a disciplinary procedure. Under the ACAS Code of Practice on disciplinary and grievance procedures employers can typically only dismiss employees for performance issues after:
giving them at least 2 warnings (or performance management discussions), and
If an employer fails to follow this disciplinary process an employee can bring an unfair dismissal case. If such a case is successful, they can be awarded an uplift of 25% on any compensation by an Employment Tribunal.
For more information, read Dismissal for disciplinary reasons.
The dismissal date will depend on the specifics of the situation. If the employee’s Employment contract allows for payments in lieu of notice (PILONs) to be made, the dismissal can take effect immediately. This means that the employee will be dismissed on the date they receive the Dismissal Letter for Poor Performance. If the contract doesn’t allow for a PILON, one can be made if both parties agree to it.
Otherwise, employees are entitled to receive and work their notice period. This should either be the statutory minimum (ie 1 week’s notice for each completed year of service, starting at 1 week and capped at 12 weeks) or a contractual notice period (ie a longer notice period set out in an employee’s employment contract).
For more information, read Notice periods.
Offering the right to appeal dismissal is an important part of a fair dismissal process.
The employee’s employment contract and/or the employer’s Disciplinary procedure or Grievance procedure should provide details on the appeal process. This includes the deadline for bringing an appeal. The Dismissal Letter for Poor Performance should also set out the deadline for appeal. As a minimum, this should be a reasonable time period (eg 14 days).
For more information, read Disciplinary appeals.
Making a Dismissal Letter for Poor Performance online is simple. Just answer a few questions and Rocket Lawyer will build your document for you. When you have all of the details prepared in advance, making your document is a quick and easy process.
To make your Dismissal Letter for Poor Performance you will need the following information:
Employer and employee details
What are the employer’s details (eg legal structure and name)?
If the employer is a company, LLP or partnership, who will sign the Dismissal Letter for Poor Performance on its behalf?
Will the Dismissal Letter for Poor Performance be printed on headed paper including the employer’s name and address?
If not, what is the employer’s address?
What is the name or title of the employer contact for the employee?
What is the employee’s name and address?
Letter date
What is the date of the Dismissal Letter for Poor Performance?
Warnings
What was the date of the Invitation letter to a poor performance hearing?
What was the date of the poor performance hearing?
Which previous warnings has the employee received:
A first warning? On what date was the first warning issued?
A final warning? On what date was the final warning issued?
A number of previous expired warnings? How many previous expired warnings has the employee received?
Dismissal
Why was the employee's performance found to be unsatisfactory?
Is the employee dismissed with immediate effect (ie will a PILON be made)?
How long is the employee's notice period?
What is the employee’s last day of employment?
What is the last pay date?
Must any unused holiday be used up or will it be paid in lieu?
If the employee has taken more holiday than their accrued allowance will a deduction be made from their final salary payment?
Post-termination restrictions
Will the employee be bound by any post-termination restrictions contained in their employment contract? If so:
What clause numbers mark restrictions that the employee will remain bound by?
What are the relevant post-termination restrictions?
Appeal
By what date should the employee make any appeals against their dismissal?
A Dismissal Letter for Poor Performance is used when an employment relationship is being brought to an end because of an employee’s persistent unsatisfactory performance. As a result, this Dismissal Letter for Poor Performance template covers:
Sender and recipient details
The start of the Dismissal Letter for Poor Performance provides details of the employer and the employee who is being dismissed because of their poor performance, after taking part in the relevant disciplinary hearings.
The dismissal itself
The body of the Dismissal Letter for Poor Performance provides details relating to the dismissal. These details include:
the date of the initial disciplinary hearing
the dates of the employee’s previous warnings
why the employee’s performance was deemed unsatisfactory
the employee’s notice period and, if relevant, any payments in lieu of notice
how any holiday entitlement will be handled
the employee’s final day of employment
when the employee’s final salary will be paid
The right to appeal
The Dismissal Letter for Poor Performance highlights the employee’s right to appeal their dismissal. It sets out who the employee should contact to make their appeal, by what date the appeal must be made, and the consequences of a successful appeal.
Data protection
The Dismissal Letter for Poor Performance also clearly sets out that any personal data (eg the employee’s name and address) used during the disciplinary process will be processed (eg collected and stored) in accordance with the employer’s Data protection and data security policy. It further encourages the employee to check the employer’s Employee privacy notice for more information on data processing.
You can edit your document if you want your Dismissal Letter for Poor Performance to include further or more detailed provisions. However, if you do this, you may want a lawyer to review or change the Dismissal Letter for Poor Performance for you, to make sure it complies with all relevant laws and meets your specific needs. Ask a lawyer for assistance.
Follow a fair, clear and transparent dismissal process
When dismissing someone, it is important that you follow a fair, clear and transparent dismissal process. You should, at all times, make sure to follow your internal Disciplinary procedure. This should include:
investigating the facts of the situation
speaking to all parties involved (eg the employee, their manager and any witnesses)
inviting the employee to a disciplinary hearing to discuss their performance
issuing disciplinary warnings
allowing the opportunity to appeal all disciplinary and dismissal actions
For dismissals due to poor performance specifically, you should consider using:
an Invitation letter to a poor performance hearing to invite the employee to a disciplinary hearing to discuss their performance
a Poor performance outcome letter - warning or no action to inform the employee of the outcomes of their poor performance hearing
an Invitation letter to a poor performance appeal hearing to invite the employee to an appeal hearing
For more information, read How to run a disciplinary hearing and Dismissal for disciplinary reasons.
Adopt the relevant HR policies
By adopting all relevant HR policies you ensure that you treat your workforce fairly and transparently. This is important for ensuring that you comply with your legal obligations and solidify your status as a conscientious and law-abiding employer. Some of the HR policies you should consider making and implementing include:
a Disciplinary procedure - informing your workforce about how you handle any disciplinary issues
a Grievance procedure - clarifying how you handle employee grievances and how disciplinary appeals can be raised
an Equal opportunities policy - detailing how you ensure equal opportunities and prevent discrimination in the workplace
an Anti-bullying and harassment policy - outlining how you approach and prevent workplace bullying and harassment
For more information, read HR policies and procedures.
Understand when to seek advice from a lawyer
Ask a lawyer if:
this Dismissal Letter for Poor Performance doesn’t meet your specific needs
you have any questions or concerns about dismissing someone for misconduct
you have employees based outside England, Wales and Scotland
