The Salary Reduction Letter Due To Poor Performance is a crucial document used when an employer needs to formally implement a reduction in an employee's compensation following documented performance issues. It is typically issued after performance improvement attempts and formal reviews have failed to achieve the required standards. The letter, governed by English and Welsh law, must detail the specific performance concerns, the amount of reduction, effective date, and ensure compliance with employment legislation, including the Employment Rights Act 1996 and National Minimum Wage requirements. This document forms part of the employee's personnel file and may be relevant in future employment disputes.
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1. Letter Header: Company details, date, and employee information
2. Performance Issues: Clear description of performance concerns and previous discussions
3. Current Salary: Statement of current compensation
4. New Salary: Proposed reduced salary amount
5. Effective Date: When the salary reduction will take effect
6. Legal Compliance: Confirmation that reduction complies with minimum wage requirements
7. Employee Acknowledgment: Space for employee signature and date
1. Performance Improvement Plan: Details of steps needed to restore original salary - use when offering path to salary reinstatement
2. Review Period: Timeframe for reviewing the reduction - use when reduction is temporary or subject to review
3. Additional Benefits Impact: Changes to benefits tied to salary - use when reduction affects other compensation elements
1. Performance Review Documentation: Copies of relevant performance reviews or warnings
2. Performance Metrics: Specific performance data supporting the reduction
3. Original Employment Contract: Reference to relevant sections of employment agreement
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