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Termination for Performance Letter

A termination for performance letter ends employment after an employee has not met agreed performance standards despite documented feedback and support, usually a performance improvement plan. It summarises the review history factually, states the outcome and sets out notice pay and final dues.

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[Company Logo][Company Name]

TERMINATION OF EMPLOYMENT – PERFORMANCE

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

Strictly Private and Confidential

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

Subject: Termination of Employment on Grounds of Performance

Dear [Employee Name],

As you are aware, your performance has been discussed with you on several occasions. In the review dated [Date], specific gaps were shared with you in writing. A Performance Improvement Plan (PIP) was then agreed with you for the period [DD/MM/YYYY] to [DD/MM/YYYY], with the following goals:

PIP Goal	Target	Actual Result	Status
[Goal 1]	[Target]	[Actual]	[Met / Not met]
[Goal 2]	[Target]	[Actual]	[Met / Not met]
[Goal 3]	[Target]	[Actual]	[Met / Not met]

During the PIP, the company provided [support given, e.g. weekly coaching, training on a topic, additional resources], and progress was reviewed with you on [Date], [Date] and [Date]. Your comments during these reviews were considered, including [brief summary of employee's explanation]. We also explored [redeployment to another role / no suitable alternative role was available].

Despite these efforts, the required standards have not been met. Accordingly, the management has decided to terminate your employment under Clause [Clause Number] of your appointment letter and the [Performance Management Policy], with effect from [Last Working Day].

You will be paid [Amount] as salary in lieu of [Notice Period] notice. Your full and final settlement, including salary for days worked, eligible leave encashment, bonus and gratuity if eligible, less lawful recoveries, will be paid within [number] days after exit clearance.

Please return all company assets to [HR Name] by [Date]. If you wish to make a written representation, please send it to [Appeal Authority] within [number] days.

We appreciate the efforts you made and wish you success in the future.

Yours sincerely,

For [Company Name]
[Authorised Signatory]
[Designation]

Received by
[Employee Name]
Date: [Date]

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What this template includes

Timeline of performance reviews, PIP start and end dates
Specific measurable goals that were not met
Support provided: coaching, training, resources
Reference to the employee's responses during reviews
Decision with policy and clause reference
Notice pay, final dues and exit instructions
Respectful close

When to use it

An employee did not meet the goals of a documented performance improvement plan
Repeated reviews and written feedback have not led to improvement
Alternatives such as redeployment or role change were considered and were not feasible
The appointment terms allow termination with notice or pay in lieu

How to customise this template

1Pull dates and targets directly from the PIP document
2List actual results against targets in the table
3Mention redeployment options considered, if any
4Have the reporting manager and HR head review the facts

HR tips

Make sure a fair PIP with realistic targets was actually run
Do not introduce new issues for the first time in this letter
Keep language about performance, not personality
Consider offering outplacement or a neutral reference

Performance-based termination should follow a fair, documented process. Treat this letter as a starting point and review it against the appointment terms, performance policy, standing orders, applicable labour laws and state rules, with a legal adviser where needed.

For HR & hiring managers

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Frequently asked questions

Can an employee be terminated for poor performance in India?+

Yes, where the appointment terms and applicable law allow it and a fair process has been followed, such as clear targets, feedback, support and time to improve. Take legal advice for workers covered by specific protections.

Is a PIP necessary before terminating for performance?+

It is not always legally required, but a documented PIP is the clearest evidence that the employee was told what to improve and given a fair chance.

What should a performance termination letter avoid?+

It should avoid vague or emotional statements, new allegations and personal remarks. Stick to measurable goals, results and the process followed.

All 50 resignation, exit & full-and-final settlement →

[Company Logo][Company Name]
TERMINATION OF EMPLOYMENT
Ref. No.:
[Reference Number]
Date:
[Date]
Mode:
By hand / Email / Registered post
Strictly Private and Confidential

To,
[Employee Name]
[Designation], [Department]
Employee ID: [Employee ID]
[Employee Address]
Subject: Termination of Your Services
Dear [Employee Name],
This letter refers to our meetings and correspondence dated [Date] (Ref. No. [Reference Number]) regarding [brief factual description of the matter, for example the closure of a business unit]. After due consideration, the management has decided to terminate your services in accordance with Clause [Clause Number] of your appointment letter dated [Date] and [Policy Name / Standing Orders].
Your employment with [Company Name] will end with effect from the close of business on [Last Working Day]. In lieu of [Notice Period] notice, you will be paid salary of [Amount] as per your terms of employment.
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[Company Logo][Company Name]
ORDER OF TERMINATION – MISCONDUCT
Ref. No.:
[Reference Number]
Date:
[Date]
Strictly Private and Confidential

To,
[Employee Name]
[Designation], [Department]
Employee ID: [Employee ID]
[Employee Address]
Subject: Order on Disciplinary Proceedings – Charge Sheet No. [Reference Number]
Dear [Employee Name],
A charge sheet dated [Date] was issued to you alleging the following misconduct under Clause [Clause Number] of the [Certified Standing Orders / Code of Conduct]:
1. [Charge 1 as stated in the charge sheet]
2. [Charge 2 as stated in the charge sheet]
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[Company Logo][Company Name]
TERMINATION OF EMPLOYMENT DURING PROBATION
Ref. No.:
[Reference Number]
Date:
[Date]
Private and Confidential

To,
[Employee Name]
[Designation], [Department]
Employee ID: [Employee ID]
Subject: Non-Confirmation and Termination During Probation
Dear [Employee Name],
You joined [Company Name] on [Date of Joining] as [Designation] on probation for a period of [Probation Period], as stated in Clause [Clause Number] of your appointment letter.
During your probation, your progress was reviewed with you by [Reporting Manager] on [Date] and [Date]. In these reviews, the expectations of the role, particularly [key expectation 1] and [key expectation 2], were discussed, along with the support available to you. (If applicable: Your probation was extended on [Date] to allow further time.)
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Termination During Probation Letter
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[Company Logo][Company Name]
RESIGNATION LETTER
Date:
[Date]
Employee ID:
[Employee ID]
To,
[Reporting Manager]
[Designation of Manager]
[Company Name]
[Company Address]

Cc: [HR Name], Human Resources
Subject: Resignation from the post of [Designation]
Dear [Reporting Manager],
Please accept this letter as formal notice of my resignation from the position of [Designation] in the [Department] department of [Company Name]. I joined the organisation on [Date of Joining], and after careful thought I have decided to move on to pursue [a new professional opportunity / higher studies / personal reasons].
As per the terms of my appointment, I will serve a notice period of [Notice Period], and my last working day will be [Last Working Day]. If the company agrees to an earlier release, I am open to discussing it, subject to completing my handover.
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[Company Logo][Company Name]
RESIGNATION ACCEPTANCE LETTER
Ref. No.:
[Reference Number]
Date:
[Date]
To,
[Employee Name]
[Designation], [Department]
Employee ID: [Employee ID]
[Work Location]
Subject: Acceptance of Your Resignation
Dear [Employee Name],
We acknowledge receipt of your resignation letter dated [Date of Resignation]. After discussion with your reporting manager, the management has accepted your resignation from the position of [Designation]. Your last working day with [Company Name] will be [Last Working Day].
Before your last working day, please complete the following:
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[Company Logo][Company Name]
ACKNOWLEDGEMENT OF RESIGNATION
Ref. No.:
[Reference Number]
Date:
[Date]
To,
[Employee Name]
[Designation], [Department]
Employee ID: [Employee ID]
Subject: Acknowledgement of Resignation Received on [Date of Resignation]
Dear [Employee Name],
This is to acknowledge that the Human Resources department received your resignation from the position of [Designation] on [Date of Resignation] through [email / letter / HRMS]. Your resignation has been recorded in your personnel file with this date.
As per your appointment terms, your notice period is [Notice Period]. Based on the date of receipt, your tentative last working day would be [Last Working Day]. Please treat this date as provisional until you receive the formal acceptance letter, which will confirm the final date and exit formalities.
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Resignation Acknowledgement Letter
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[Company Logo][Company Name]
RESPONSE TO RESIGNATION
Ref. No.:
[Reference Number]
Date:
[Date]
To,
[Employee Name]
[Designation], [Department]
Employee ID: [Employee ID]
Subject: Your Resignation Dated [Date of Resignation] – Unable to Accept as Submitted
Dear [Employee Name],
We have received your resignation dated [Date of Resignation] requesting relieving on [Requested Date]. After review, we regret that the company is unable to accept the resignation on the terms submitted, for the following reason:
- Option 1 – Notice period: Clause [Clause Number] of your appointment letter requires [Notice Period] notice or payment in lieu. Your request does not meet this requirement.
- Option 2 – Pending inquiry: A domestic inquiry under charge sheet Ref. No. [Reference Number] is in progress, and as per [Standing Orders / Policy Name] the matter must be concluded before separation is processed.
- Option 3 – Service agreement: Your [training / service] agreement dated [Date] sets out the exit process in Clause [Clause Number], which has not yet been followed.
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[Company Logo][Company Name]
NOTICE PERIOD – TERMS AND EXPECTATIONS
Ref. No.:
[Reference Number]
Date:
[Date]
To,
[Employee Name]
[Designation], [Department]
Employee ID: [Employee ID]
Subject: Your Notice Period and Related Guidelines
Dear [Employee Name],
Further to your resignation dated [Date of Resignation], this letter sets out the arrangements that will apply during your notice period.
Item Details
Notice start date [Date]
Notice period as per appointment letter [Notice Period]
Last working day [Last Working Day]
Handover to [Successor Name]
HR coordinator [HR Name]
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Notice Period Letter
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