Guide to Termination Letter Due to Lack of Work with Sample

There are plenty of reasons why businesses may go into encountering issues, such as losing market share, contracts, or clients, including losing their human capital. If the performance of labor capital has decreased to the point that it affects the business severely, maybe it’s time to for employment layoff. Use termination letter due to lack of work to inform about the decision.

How Do You Terminate an Employee Due to Lack of Work?

Before you decide to terminate your employee, make sure that you go through these steps first:

1. Document every single proof so the letter can’t be argued against you.
2. State your expectation first so the employee can fully grasp their responsibilities and duties.
3. Initiate an improvement plan first to give chance to the employee to recognize the problem and correct it.
4. Sever the employment relationship if you still not see needed improvement after a while.

How Do I Write A Termination Letter for Poor Performance?

Here’s how you can a termination letter caused by slacking performance:

1. Communicate the situation, which could include the termination’s reasons.
2. Tell your decision to do termination in clear way, without being neither too hostile or to apologetic.
3. State the explanations of termination based on evidences and facts only.
4. Write out relevant further information such as severance pay, employee’s insurance, and others if there’s any.
5. Finish by giving encouraging messages.

Do You Have to Give an Employee A Termination Letter?

The plan to break off the employment relationship must be informed through letter, along with notice period. The termination letter due to lack of work might be delivered in-person, to the employee’s address, or via e-mail.

Is Poor Performance Cause for Termination?

Decreasing work performance is amongst the most common reasons behind employment termination. If the employee doesn’t fulfill their duties and responsibilities, then they will receive warnings first. Then it depends on their improvement to proof that indeed they’re a worthy of investment for company.

Sample of Employment Termination Letter

Here is a sample of highly customizable termination letter for employee who performs poorly for you to use or refer:

Mr./Mrs./Ms. (Employee’s name)

Our company has undergone poor financial condition for the past one year, as you must understand already. We have analyzed various possible causes and explored many alternative scenarios to find the solution. Unfortunately, due to our findings that the finance damage of our company is caused by the constant failure of your team to meet the expectation, we have no other option than to reform your department and terminate your service as the head of it as per December 12, 2020.

Please understand that this decision is made after a long process of assessment and evaluation. Please contact the HR team for your severance pay. At last, we thank you for your contribution for the past three years to the company.

Sincerely,

(Your name)

Feel free and edit termination letter due to lack of work above with your own detail. On last note, before sending the letter, it’s always better to discuss first with your company’s legal team.