This document is essential for employers in Hong Kong who need to formally terminate an employee's contract due to poor performance. The Termination Due To Poor Performance letter should only be used after documented performance issues, formal warnings, and unsuccessful performance improvement plans. It must comply with the Hong Kong Employment Ordinance and related employment legislation, including proper notice periods and statutory entitlements. The document serves as an official record of the termination decision, outlining the reasons for termination, notice period or payment in lieu, final payments, and post-employment obligations. It's crucial for protecting the employer's interests while ensuring fair treatment of the employee and minimizing the risk of wrongful dismissal claims.
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1. Letter Header: Company letterhead, date, and employee's full name and address
2. Subject Line: Clear indication that this is a termination notice
3. Reference to Employment Contract: Details of the original employment contract and position
4. Performance Issues: Specific description of performance issues, including dates and examples
5. Previous Communications: Reference to prior warnings, performance improvement plans, and discussions
6. Termination Decision: Clear statement of the decision to terminate and the effective date
7. Notice Period: Specification of notice period or payment in lieu of notice
8. Final Payments: Details of final salary, unused annual leave, and other entitlements
9. Company Property: Instructions regarding return of company property
10. Confidentiality: Reminder of ongoing confidentiality obligations
11. Signature Block: Space for authorized signatory and company stamp
1. Garden Leave: Include if the employee is to be placed on garden leave during the notice period
2. Post-termination Restrictions: Reference to existing non-compete or non-solicitation clauses if applicable
3. Handover Requirements: Include if specific handover of work or projects is required
4. Reference Policy: Include if addressing future reference requests
5. Medical Benefits: Include if there are ongoing medical benefits to be addressed
6. Share Options/Long-term Incentives: Include if employee has any outstanding share options or long-term incentives
7. Acknowledgment: Optional section for employee to acknowledge receipt and understanding
1. Schedule 1 - Performance History: Detailed timeline of performance issues, warnings, and improvement attempts
2. Schedule 2 - Final Payment Calculation: Detailed breakdown of all final payments and deductions
3. Schedule 3 - Company Property List: Itemized list of company property to be returned
4. Appendix A - Handover Checklist: Detailed list of tasks and documents to be handed over before departure
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