Salary Reduction Letter Due To Poor Performance Template for Singapore

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Key Requirements PROMPT example:

Salary Reduction Letter Due To Poor Performance

"I need a Salary Reduction Letter Due To Poor Performance for an employee in our Singapore office who has consistently missed sales targets for six months, reducing their salary by 15% effective March 1, 2025, with a three-month review period."

Document background
The Salary Reduction Letter Due To Poor Performance is a crucial document used when an employer needs to formally implement a salary reduction following documented performance issues. Under Singapore employment law, such actions must be properly documented and justified, with clear references to previous performance discussions and improvement attempts. The letter serves as both a legal record and communication tool, typically issued after performance improvement plans have been unsuccessful. It must comply with Singapore's Employment Act and relevant Tripartite Guidelines, ensuring fair treatment while protecting the employer's interests.
Suggested Sections

1. Date and Address Block: Current date and employee's full name and address

2. Reference to Current Position: Statement of employee's current role and department

3. Performance Issues: Clear documentation of specific performance issues leading to this decision

4. Prior Communications: Reference to previous performance discussions and improvement plans

5. Salary Reduction Details: Specific amount of reduction and new salary figure

6. Effective Date: When the salary reduction will take effect

7. Acknowledgment Section: Space for employee signature acknowledging receipt

Optional Sections

1. Performance Improvement Path: Details of how employee can improve and potentially restore original salary

2. Review Period: Timeline for when the reduction will be reviewed

3. Additional Benefits Impact: Any changes to benefits resulting from salary reduction

Suggested Schedules

1. Performance Review Documentation: Copies of recent performance reviews or evaluations

2. Performance Improvement Plan: Copy of any existing PIP or improvement requirements

3. Meeting Minutes: Documentation of performance discussion meetings

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Industries

Employment Act (Chapter 91): Primary legislation governing employment relationships in Singapore, covering terms of employment, salary payments, requirements for employment term changes, and notice period requirements

Tripartite Guidelines on Fair Employment Practices: Guidelines ensuring fair treatment of employees, non-discriminatory practices, and proper documentation of performance issues

Tripartite Guidelines on Managing Excess Manpower: While focused on retrenchment, provides relevant principles for fair treatment in salary reduction scenarios

Contractual Requirements Review: Review of existing employment contract, including clauses allowing salary adjustments and compliance with notice periods

Documentation Requirements: Essential documentation including evidence of poor performance, previous performance improvement plans, prior warnings, and performance evaluations

Minimum Salary Compliance: Verification that reduced salary doesn't fall below statutory minimums and considers any applicable collective agreements

Procedural Fairness Requirements: Ensuring proper documentation of issues, fair opportunity for improvement, clear communication of expectations, and reasonable notice period

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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