Firing an employee for poor performance is never easy.
It’s an awkward, difficult conversation that most managers dread.
However, if an employee is consistently not meeting expectations despite coaching and performance improvement plans, termination may be the necessary next step.
When you find yourself in the position of having to terminate an employee for non-performance, a clear, well-written termination letter is essential.
It documents the reasons for the termination and can help protect your company from potential legal issues down the road.
Sample Termination Letters for Non-Performance
The following 15 sample termination letters for non-performance provide templates you can customize for your use.
Be sure to consult with HR and legal counsel to ensure your letter aligns with company policies and applicable laws.
Employee Termination Letter for Poor Performance
Subject: Termination of Employment
Dear [Employee Name],
This letter is to inform you that your employment with [Company Name] is being terminated effective [date] due to unsatisfactory work performance. As discussed in our meetings on [dates], your performance has consistently fallen short of the standards and expectations for your role as [job title].
Despite verbal and written warnings, as well as the opportunity to improve through a Performance Improvement Plan, your work has not reached the required level. Therefore, we have made the decision to end your employment with the company.
Your final paycheck, which includes payment through [date], will be mailed to you. You will also receive information regarding your benefits and COBRA eligibility in a separate mailing.
Please return all company property, including [list items like keys, ID badge, laptop, etc.] to [person/dept] by [date].
We wish you the best in your future endeavors.
Sincerely,
[Manager Name]
[Title]
Termination of Employment due to Failure to Meet Goals
Subject: Notice of Employment Termination
Dear [Employee Name],
I regret to inform you that your employment with [Company] is being terminated effective [date]. This decision was made after careful consideration of your performance against the goals and objectives established for your role.
As we have discussed in recent performance reviews, you have consistently missed your [sales targets/project deadlines / other KPIs]. We provided you with a Performance Improvement Plan on [date] outlining specific, measurable goals and timelines for improvement. However, your performance has not improved to meet the minimum requirements of your position.
Your final pay, including [pay period end date], will be deposited on the next regular payday on [date]. Information on your benefits after termination will be sent to you separately by our HR department.
Please schedule a time with me to return your [company equipment/badge/keys/uniform] before your last day. If you have any questions, please reach out to me or HR.
Thank you for your service to [Company].
Regards,
[Manager Name]
[Title]
Employee Termination for Consistent Underperformance
Subject: Termination of At-Will Employment
Dear [Employee Name],
As per our discussion today, this letter serves as formal notice that [Company] is terminating your employment as [job title] effective [date]. This decision is based on your consistent failure to perform the essential functions of your role at an acceptable level.
As documented in your performance reviews and our prior discussions, your work has regularly fallen short in the areas of [quality, timeliness, productivity, etc.]. Unfortunately, your performance has not improved despite our performance improvement efforts and a 60-day PIP.
By our at-will employment policy, we are exercising our right to terminate your employment. Your final paycheck will be processed on [date] and mailed to your address on file. You will receive a separate letter outlining your benefits status post-termination.
By [date], please coordinate with [manager or HR] to return all company property in your possession. We wish you success in your future employment.
Sincerely,
[Company Representative]
[Title]
Termination Letter for Failure to Complete Required Training
Subject: Termination of Employment – Failure to Complete Mandatory Training
Dear [Employee Name],
As outlined in our company policies and your job description, completing [specific training] by [deadline] is a condition of continued employment in your role as [position]. Our records indicate that you did not complete this mandatory training, and thus failed to meet this key requirement of your position.
Therefore, we regret to inform you that your employment with [Company Name] is terminated effective immediately, [date]. Despite multiple reminders, you did not fulfill this essential job requirement which is necessary for the successful performance of your role.
Your final pay will be processed by state law and our company’s standard payroll practices. You will receive your final paycheck on [date] via [method – direct deposit, mail, etc.]. Information regarding the status of your benefits will be provided separately by our HR team.
Please return all company equipment and property to [person/department] no later than [date]. If you have any questions, you may contact me or [HR representative].
Sincerely,
[Manager Name]
[Title]
Immediate Termination for Poor Performance Letter
Subject: Termination of Employment Effective Immediately
Dear [Employee Name],
Effective today, [date], your employment with [Company Name] is being terminated due to unsatisfactory work performance. As discussed in our meeting this morning, your consistent failure to meet the basic requirements and expectations of your role as [job title] necessitates your immediate dismissal.
Your performance deficiencies, which include [detail issues like missed deadlines, errors, and lack of productivity], have not improved despite multiple coaching sessions and a formal warning given on [date]. We have lost confidence in your ability to fulfill your job responsibilities.
By our policies and state law, your final pay through today will be deposited to your account on our next regular payday, [date]. Your employee benefits will terminate effective [last day of the month]. You will receive COBRA information to continue health insurance, if eligible.
Please gather your personal belongings and return your [badge, computer, keys] to [person] before leaving the office today. You will be escorted by HR to ensure all company property is collected before your departure.
Regards,
[Manager Name]
[Title]
Termination of Employment Due to Unacceptable Performance
Subject: Notice of Separation of Employment
Dear [Employee Name],
Please consider this an official notification that [Company] is terminating your employment as [job title] effective [date]. This separation is a result of your continued unacceptable performance, which fails to meet the minimum requirements of your role.
As communicated in performance discussions on [dates] and documented in your personnel file, concerns regarding your [work quality, productivity, reliability] have been ongoing. We have made good faith efforts to help you improve through [coaching, training, performance plan] to no avail.
You will receive your final paycheck, including any earned and unused [PTO, vacation, etc.] on [date] via [method]. Benefits information will be mailed shortly after your termination date. Please contact [HR person] with any questions.
On your last day, you must return all company-owned items, such as [laptop, phone, badge]. Plan to meet with your manager on or before [date] to complete the check-out process. We wish you the best in your future career path.
Sincerely,
[Manager Name]
[Title]
Termination Letter for Lack of Improvement
Subject: Employment Termination – Performance
Dear [Employee Name],
I regret to inform you of our decision to terminate your employment as [job title] with [Company], effective [date]. This action is being taken due to your failure to improve your performance to an acceptable level.
As noted in your 90-day performance improvement plan issued on [date], you were given clear expectations and metrics for performance in the areas of [detail areas]. We met regularly to review your progress and provided additional support, yet insufficient improvement has been made.
Your final paycheck, including [pay period end date], will be mailed on [date]. You will receive a separate notice regarding the impact of your termination on your employee benefits and any eligibility for continuation of coverage.
By your last day, [date], please turn in all company property that was assigned to you, including [itemized items]. Coordinate the return with [manager or HR]. If you have questions, please contact me or [HR rep].
We appreciate your service and wish you success moving forward.
Regards,
[Name]
[Title]
Letter of Termination for Inability to Perform Job Duties
Subject: Employment Termination Notice
Dear [Employee],
This letter serves as notice that your employment with [Company Name] is terminated, effective [date]. The reason for your termination is your demonstrated inability to adequately perform the key duties of your position as [job title].
Our decision to end your employment comes after prior discussions of your unsatisfactory performance on [date 1, date 2]. We provided you with a detailed performance improvement plan on [date], which outlined our expectations and recommendations to help you succeed in your role.
However, our assessment during and after your [30/60/90] day PIP shows insufficient progress and failure to meet the key objectives and requirements of the plan and your continued employment. Based on your unacceptable level of performance, we have determined that termination is appropriate.
Your final wages and any accrued vacation/PTO will be paid on [date] by our normal payroll schedule and practices. Benefits information will be sent separately by our HR department, including COBRA eligibility.
Please return any company property in your possession, including [list items] to [person] no later than [date]. If you have questions, feel free to contact [HR person].
Sincerely,
[Manager Name]
[Title]
Termination of Employment for Substandard Performance
Subject: Notice of Termination for Poor Performance
Dear [Employee Name],
This letter confirms our discussion today notifying you of the termination of your employment with [Company Name] effective [date]. This decision was made due to your consistent substandard performance in your role as [position].
As documented in your personnel file and communicated to you on several occasions, including [dates], your work has regularly failed to meet the expectations and requirements of your position. Key issues include [missing deadlines, quality errors, lack of productivity/output].
You were given a written warning on [date] and placed on a performance improvement plan. However, your performance has not reached an acceptable level despite this corrective action and performance management process.
Your final paycheck, including [date range], will be deposited on our next designated payday, [date]. Accrued unused vacation/PTO will be paid out by state law. You will receive benefits continuation information under separate cover.
Company equipment and property, including [items], must be returned on or before your last day. Contact [person] to coordinate. If you have questions, please reach out to me or [HR person].
We wish you the best in your future endeavors.
Thank you,
[Manager Name]
Employment Termination for Performance Reasons Letter
Subject: Termination of Employment – Effective [Date]
Dear [Employee Name],
We regret to inform you that your employment with [Company] is being terminated effective [date] for unsatisfactory work performance. This decision was made after a careful review of your failure to meet the performance standards for your position as [job title].
Our records indicate that you have received progressive discipline regarding your performance deficiencies, including:
- Verbal warning on [date]
- Written warning on [date]
- Performance improvement plan effective [date]
We have made reasonable efforts to help you improve your performance through feedback, coaching, and a structured PIP. However, your work remains below expectations in the areas of [detail key issues]. At this time, we have decided to end the employment relationship.
Your final pay will be processed with the next regular payroll and mailed to your address on file. Benefit end dates and COBRA eligibility will be provided separately by HR. Company property must be returned by [date] to your manager.
If you have any questions, please contact me or [HR rep]. We wish you success in your future professional pursuits.
Regards,
[Manager Name]
[Title]
Poor Performance Termination Letter Sample
Dear [Employee Name],
I am writing to notify you that your employment with [Company Name] is terminated as of today, [date], due to poor performance. Over the past [period], we have discussed concerns about your ability to meet the requirements of your [job title] role.
Specific areas where your performance consistently fails to meet expectations include:
- [Issue 1]
- [Issue 2]
- [Issue 3]
On [date], you were provided a performance improvement plan outlining areas for immediate improvement, metrics to measure progress, and the support available to help you succeed. Regular meetings and evaluations during the [30/60/90] days of your PIP indicate you have failed to make the necessary improvements. You are being terminated effective immediately.
You will receive your final paycheck for time worked through [date], including any accrued unused vacation or PTO, on [date] via [method]. Information regarding your COBRA health insurance continuation rights and other impact on benefits will be mailed.
Please gather your personal belongings and turn in your [company property] before leaving today. If you have any questions, contact [HR person].
Thank you for your service to [Company].
Sincerely,
[Manager Name]
[Title]
Termination Notice for Unacceptable Work Performance
Subject: Notice of Termination of Employment
Dear [Name],
This letter serves as formal notice that [Company Name] is terminating your at-will employment effective [date]. The reason for your termination is unacceptable work performance in your role as [position title].
As discussed with you on [date 1] and [date 2], your job performance is deficient in several key areas:
- [Performance issue]
- [Performance issue]
- [Performance issue]
Following your 60-day performance improvement plan which began on [date], your work still fails to meet the expectations and standards we outlined for your role. Regretfully, we have determined to end your employment.
By company policy and state law, your final wages through your termination date will be paid on [date]. You will receive any accrued unused vacation or PTO and COBRA benefits information in a separate communication from HR.
Please make arrangements with [manager] to collect your personal belongings and return company equipment by [date]. If you have questions, contact [HR rep name].
We wish you success in your future career path.
Regards,
[Manager Name]
Employee Termination Letter for Poor Performance and Misconduct
Dear [Employee Name],
Please be advised that your employment with [Company] is terminated effective immediately, [date], for performance deficiencies and violation of company policy. Your unacceptable work and behavior are incompatible with continued employment.
Your termination is based on:
- Failure to meet performance goals as outlined in your PIP dated [date]
- Excessive unexcused absences totaling [#] days, as noted in your attendance warning on [date]
- Violation of [Company]’s Code of Conduct policy on [date] for [describe misconduct]
As discussed in meetings on [dates] and detailed in written warnings, your poor performance and misconduct are grounds for termination. Your final paycheck, including pay through [date] and any earned unused vacation or PTO, will be mailed to your home address.
Benefits end on your termination date. You will receive information about benefits continuation options. All company property must be returned immediately, including [list items]. Failure to return company items may result in legal action.
If you have questions, you may contact [HR rep]. We wish you the best.
Sincerely,
[Manager Name]
Termination Letter for Performance and Productivity Issues
Subject: Termination of Employment – Performance
Dear [Employee Name],
This letter confirms that your employment with [Company Name] will end on [date] due to ongoing performance and productivity issues in your role as [job title]. Despite our efforts to help you succeed, your work continues to fall short of expectations.
Areas of deficient performance include:
- Failure to meet established [sales/production/other] quotas
- Lack of proficiency with required job skills and tools
- Inability to complete assigned tasks accurately and on time
We provided feedback and implemented a written performance improvement plan on [date]. Over the [length of PIP] period, your performance did not improve sufficiently to meet the goals and expectations detailed in the PIP. Therefore, we have decided to terminate your employment.
You will receive your final regular paycheck on [date], and payment for accrued unused PTO/vacation by company policy. Please work with [manager] to transition your job responsibilities before your end date and return all company property.
If you have questions, feel free to reach out to [HR contact].
Sincerely,
[Manager Name]
[Title]
Performance-Based Termination of Employment Letter
Subject: Termination of Employment
Dear [Employee Name],
I regret to inform you that [Company Name] has made the difficult decision to terminate your employment effective [date]. This action is being taken due to your continued unsatisfactory performance in your role as [job title].
Our concerns regarding your performance have been documented and communicated to you on several occasions, including:
- Performance review on [date] noting deficiencies in [areas]
- Verbal warning issued on [date] for [performance issues]
- Written warning provided on [date] outlining necessary improvements
- Performance Improvement Plan implemented on [date] detailing expectations and timeline
Despite these progressive disciplinary actions and the company’s good faith efforts to help you improve, your performance remains below expectations. Key areas of continued underperformance include [detail areas]. Regretfully, we have determined that termination of employment is warranted at this time.
Your final wages, including any accrued unused vacation or PTO, will be paid on [date] by our regular payroll practices. You will receive a separate communication regarding the status of your employee benefits following your termination date.
Please return all company property in your possession, including [list items], to [person/dept] by no later than [date]. If you have any questions, you may contact me or [HR rep name].
We appreciate your service to [Company] and wish you success in your future endeavors.
Regards,
[Manager Name]
[Title]
Wrapping Up: Termination Letter Best Practices
Termination letters serve as an official record that an employee was fired for poor performance.
They summarize the reasons for the firing and outline key information like the last date of employment and the next steps.
When drafting a termination letter, be sure to:
- Clearly state that the employee is being terminated and the effective date
- Succinctly explain the performance issues that led to the termination
- Reference any prior warnings, performance improvement plans, and progressive discipline
- Provide key information about final pay, unused vacation/PTO, benefits, and company property
- Maintain a professional tone and stick to the facts, avoiding emotional statements
- Work with HR and legal counsel to ensure the letter is compliant with laws and company policy
While termination letters for poor performance follow a similar structure, the details and language should be customized for your organization and the specific employee situation.
Use the samples here as a starting point to craft a clear, fair, and legally sound document.
With a well-written termination letter, you create a paper trail that can help protect your company while treating exiting employees with respect and clarity on what happens next.
Though never pleasant, terminations are a necessary part of business when performance continuously falls short – and having a thorough termination letter process helps managers handle these challenging situations professionally.