Formal Warning Letter (Unsatisfactory Performance)
A Formal Warning Letter (Unsatisfactory Performance) is an official warning you can give to your employee, notifying them that their performance is unsatisfactory. It's your first step in the process of terminating an employee.
4.1 (16 reviews)
Last updated January 21, 2025
Under 3 minutes
Suitable for Australia
Written by
Edwin Montoya Zorrilla
Reviewed by
Damin Murdock
Document Overview
A Formal Warning Letter sets out that an employee's performance, behaviour, or conduct is unsatisfactory. It is important that you follow the correct procedures when terminating an employee. Firing an employee who isn't performing is a necessary part of running your successful business. It is recommended that you seek legal advice before terminating an employee as there are a number of legal options available to a disgruntled employee, including commencing proceedings against you for unlawful termination or unfair dismissal.
The Legal Risk Score of a Formal Warning Letter (Unsatisfactory Performance) Template
Our legal team have marked this document as medium risk considering:
- If poorly managed, a warning of dismissal can create liability for the employer.
- A performance management process requires meaningful support from the employer.
Users familiar with performance management processes may find it easy to use but should ensure thorough completion to avoid gaps that could affect the document's effectiveness and clarity in meeting its goals.
Formal Warning Letter (Unsatisfactory Performance) Checklist
Complete your free Formal Warning Letter (Unsatisfactory Performance) with our checklist
Confirm receipt
Confirm that the recipient has received and understands the letter.
Ensure Accurate Documentation
Make sure the letter and any response are well documented.
Define Clear Actions and Deadlines
Outline any agreed-upon actions, responsibilities, and deadlines to ensure that all parties are aware of their commitments and the expectations moving forward.
Maintain Confidentiality
Maintaining issues around employee performance confidential is good practice.
Use this Formal Warning Letter (Unsatisfactory Performance) if:
- You would like to warn an employee that their performance is unsatisfactory in regards to performance, behaviour or conduct.
What does the Formal Warning Letter (Unsatisfactory Performance) cover?
- Documents unsatisfactory performance, behaviour or misconduct;
- Puts the employee on notice;
- Explains how the employee's performance must improve; and
- Warns of the risk of termination.
Other names for Formal Warning Letter (Unsatisfactory Performance) include:
- Last Warning Notice.
Other documents you may need:
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