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Non Performance Termination Letter

Non Performance Termination Letter Template for South Africa

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Key Requirements PROMPT example:

Non Performance Termination Letter

"I need a Non Performance Termination Letter for a software developer in our Cape Town office who has failed to meet project deadlines consistently over the past 6 months, despite two formal warnings and a performance improvement plan; the termination should be effective March 15, 2025."

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Document background
The Non Performance Termination Letter is a crucial document in South African employment law, used when an employer needs to formally terminate an employee's contract due to sustained unsatisfactory performance. It serves as the final step in a documented performance management process, typically following performance improvement plans and formal warnings. The letter must comply with the Labour Relations Act 66 of 1995 and related employment legislation, ensuring both substantive and procedural fairness. It should reference previous performance discussions, outline specific performance issues, state the notice period, and detail final payment arrangements. This document is essential for maintaining legal compliance and minimizing the risk of unfair dismissal claims in South African employment relationships.
Suggested Sections

1. Recipient Details: Full name, position, and address of the employee receiving the termination notice

2. Reference Line: Clear subject line indicating this is a termination notice for non-performance

3. Previous Communications Reference: Summary of prior warnings, performance improvement plans, and meetings regarding performance issues

4. Specific Performance Issues: Detailed description of the performance failures and how they breach employment terms

5. Legal Basis: Reference to relevant contract clauses and labor law provisions justifying the termination

6. Termination Decision: Clear statement of termination decision and effective date

7. Notice Period: Specification of notice period or payment in lieu of notice

8. Final Payment Details: Information about final salary, leave pay, and other entitlements

Optional Sections

1. Handover Requirements: Include when there are specific projects, documents, or responsibilities that need to be transferred

2. Company Property Return: Include when employee has company assets that need to be returned

3. Non-Compete Reminder: Include when employment contract contains post-termination restrictions

4. Appeal Rights: Include when internal policies allow for appeals against termination

5. Reference Policy: Include when addressing future reference requests policy

6. Exit Interview: Include when company policy requires an exit interview

Suggested Schedules

1. Performance Review History: Chronological list of performance reviews and outcomes

2. Warning Letters: Copies of previous formal warnings issued

3. Performance Improvement Plan: Copy of implemented PIPs and progress reports

4. Meeting Minutes: Records of performance discussion meetings

5. Final Payment Calculation: Detailed breakdown of final payment including all entitlements

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant Industries

Financial Services

Manufacturing

Retail

Technology

Healthcare

Mining

Construction

Professional Services

Education

Telecommunications

Agriculture

Transport and Logistics

Hospitality

Energy

Relevant Teams

Human Resources

Legal

Employee Relations

Compliance

Management

Operations

Administration

Relevant Roles

Human Resources Manager

HR Director

Line Manager

Department Head

General Manager

Chief Executive Officer

Operations Manager

HR Business Partner

Legal Counsel

Employee Relations Manager

Compliance Officer

Department Supervisor

Regional Manager

Branch Manager

Industries
Labour Relations Act 66 of 1995: Governs the termination process and ensures fair labor practices, including requirements for fair procedures in dismissals and the concept of substantive fairness
Basic Conditions of Employment Act 75 of 1997: Sets out fundamental terms of employment and notice periods required for termination of employment
Constitution of South Africa, Section 23: Establishes the fundamental right to fair labor practices and affects how termination procedures must be conducted
Common Law Principles of Contract: Governs the basic principles of contract termination, breach of contract, and remedies available to parties
Promotion of Administrative Justice Act 3 of 2000: Ensures administrative actions are lawful, reasonable, and procedurally fair, which may apply to termination procedures in certain contexts
Employment Equity Act 55 of 1998: Ensures that termination decisions are not based on unfair discrimination and promotes equal opportunity in the workplace
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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