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Free letter template · Word

PIP Warning Letter

A PIP warning letter formally informs an employee that their performance is below the required standard and that they are being placed on a performance improvement plan. It states the facts, refers to the attached PIP, explains the support available and review dates, and invites the employee to respond.

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[Company Logo][Company Name]

LETTER – PERFORMANCE IMPROVEMENT PLAN

Ref. No.:
[Reference Number]
Date:
[Date]

Strictly Private and Confidential

To,
[Employee Name]
Employee ID: [Employee ID]
[Designation], [Department]
[Work Location]

Subject: Placement on Performance Improvement Plan

Dear [Employee Name],

This letter follows our meeting on [Date], attended by you, [Reporting Manager] and [HR Name], where we discussed your performance in the role of [Designation]. As discussed, and as shared with you earlier during reviews on [DD/MM/YYYY] and [DD/MM/YYYY], your performance in the following areas has been below the expected standard:

  1. [Area 1 – fact-based description, e.g. achieved 62% of the monthly collection target in July, August and September]
  2. [Area 2 – fact-based description]
  3. [Area 3 – fact-based description]

To help you meet the expected standard, you are being placed on a Performance Improvement Plan (PIP) from [DD/MM/YYYY] to [DD/MM/YYYY]. The attached PIP sets out the goals, actions, success measures and timeline. During this period the company will provide the following support: [training / weekly coaching with your manager / tools or system access].

Your progress will be reviewed on [DD/MM/YYYY], [DD/MM/YYYY] and [DD/MM/YYYY]. If the PIP goals are met, the plan will be closed and confirmed to you in writing. If they are not met, the company may consider further action in accordance with its policies, and you will be given a full opportunity to present your views before any decision is taken.

We want you to succeed. If you feel any of the facts above are incorrect, or if there are circumstances affecting your work that we should know about, please share them in writing with HR within [Number] working days. You may also approach [HR Name] at any time during the plan for support.

Please sign the duplicate copy of this letter to acknowledge receipt.

Yours sincerely,

For [Company Name]
[Authorised Signatory]
[Designation]
Received by
[Employee Name]
Date: [Date]

Enclosure: Performance Improvement Plan Ref. [Reference Number]
Copy to: [Reporting Manager]; Personnel File

What this template includes

  • Reference to earlier feedback and meeting date
  • Factual summary of performance gaps
  • Reference to the attached PIP with start and end dates
  • Support the company will provide
  • Review meeting schedule
  • Clear but fair statement of possible outcomes
  • Invitation to respond in writing

When to use it

  • When informal coaching has not improved performance
  • To formally start a PIP after a review meeting
  • Following a low appraisal rating with documented gaps
  • Where company policy requires a written warning before a PIP

How to customise this template

  1. 1Add the date and outcome of the meeting where the PIP was discussed
  2. 2List two or three main gaps; keep detail in the attached PIP
  3. 3Name the support person and review dates
  4. 4Have HR check the tone before issuing

HR tips

  • Deliver the letter in a private meeting, not by email alone
  • Use neutral, factual language; avoid words like "incompetent" or "careless"
  • Make sure the employee gets a copy of the PIP with the letter
  • Record acknowledgement of receipt even if the employee disagrees

This template is a starting point. Review it against applicable labour laws, state rules, your standing orders and HR policies, and with a legal adviser where needed, before issuing it.

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Frequently asked questions

Is a PIP letter a warning letter?+

It is a formal written notice about performance. Some companies call it a warning, but its main aim should be to support improvement within a defined period.

What should a PIP letter include?+

The performance concerns, reference to the PIP and its duration, the support provided, review dates, possible outcomes and the employee’s right to respond.

Can a company terminate after a PIP letter?+

Any action after a PIP must follow the appointment terms, company policy, standing orders and applicable law, and the employee should be given a fair hearing.