Employee Warning Letter: Definition, How To Write & Free Templates

Think about a worker who keeps coming late even after being reminded.

What can an employer do to handle this problem in a fair and professional way? This is where an employee warning letter becomes useful.

A warning letter is a formal way to address workplace problems.

It records the issue, tells the employee what needs to change, and gives them a chance to fix it.

It also protects the company by proving that the employee was informed about the problem in case there is a dispute later.

In this article, we will dive into the importance of employee warning, how to create, and templates for you. Let’s read the details below.

What is an Employee Warning Letter?

A warning letter is a formal notice given to an employee when they break company rules, perform poorly, or fail to meet expectations.

It serves as an official record of the issue and lets the employee know they must improve.

A warning letter is not just about scolding employees. It also protects the company by keeping a record of workplace issues.

If the problem continues, the letter shows that the employee was informed and given a chance to change. This can be useful if a dispute arises later.

If an employee keeps breaking the rules despite several warnings, the employer may have the right to terminate the contract.

However, termination should always be the last step. A warning letter helps create a fair and clear process before taking serious action.

What is Included in the Warning Letter?

A warning letter should be clear and professional. It must include:

Employee’s details (name, job title, department).
Date of the letter for record-keeping.
Reason for the warning, explaining what the employee did wrong.
Details of the issue, including dates, times, and examples.
Expected actions for improvement.
Consequences if the problem continues, such as further warnings or termination.
Signatures from both employer and employee to confirm receipt.

Keeping proper records of warning letters is important for HR and legal reasons. If the issue leads to a dispute, these documents prove that the company followed a fair process.

How to Draft an Employee Warning Letter?

A warning letter should sound firm but professional. It should not feel like a personal attack but rather a chance for the employee to improve.

Here’s how employers can write an effective warning letter:

1. Describe the issue clearly

Be specific about what the employee did wrong. Instead of saying “You were late,” mention the number of times they were late and the exact dates.

2. Use professional language

Avoid emotional or aggressive words. Keep it factual and neutral.

3. Mention past discussions

If the issue was discussed verbally before, include that in the letter. It shows the employee was warned before.

4. Explain what needs to change

Tell the employee what they must do to fix the problem. If improvement is needed within a certain time, mention it.

5. Focus on correction, not punishment

A warning letter should help the employee improve, not just threaten them.

After writing the letter, the employer should meet with the employee, explain the issue, and give them the letter.

The employee should sign it to acknowledge receipt, but they are not legally required to do so.

Why Use an Employee Warning Letter in Malaysia?

Warning letters are important for employers because they:

Provide a written record as proof that the company informed the employee about their mistake. If the problem continues, this document helps support further actions.
Make workplace rules clear. Employees should understand company policies and what happens if they break them. A warning letter reminds them of these rules.
Give employees a chance to improve because not all mistakes require termination. A warning letter helps employees correct their actions before serious steps are taken.

For these reasons, employers should always document workplace issues properly and handle disciplinary actions fairly.

When Do You Use an Employee Warning Letter?

Employers should use warning letters in different situations:

1. Misconduct

This includes actions like harassment, theft, or breaking company rules. For serious cases, such as violence or theft, immediate action may be needed.

2. Poor performance

If an employee fails to meet job expectations, misses deadlines, or delivers low-quality work, a warning letter can remind them to improve.

3. Absenteeism and lateness

Repeated unexcused absences or coming late to work affect company operations. A warning letter helps formally address this.

4. Breaking company policies

If an employee misuses company property, fails to follow safety rules or misbehaves on social media, a warning letter serves as a written reminder.

Tip: Employers should not rush to issue warning letters for minor mistakes. Verbal discussions should come first.

However, if the issue continues, a formal letter becomes necessary.

What is the Legislation in Malaysia Regarding Warning Letters?

Many people believe that employers must issue three warning letters before firing an employee.

However, Malaysian labor laws do not have a fixed rule about this.

The Employment Act 1955 and Industrial Relations Act 1967 say that employers must treat employees fairly in disciplinary actions.

This means employers must explain the issue clearly and allow employees to respond before taking serious action.

To avoid claims of unfair dismissal, employers should always follow a proper process when issuing warning letters.

What is the Last Written Warning?

A final warning letter is the last notice given before termination.

It means the employee has already been warned multiple times but has not corrected their behavior.

For serious offenses, such as harassment or fraud, employers can issue a final warning immediately without previous warnings.

However, repeated final warnings should be avoided. If an employee does not improve after receiving one, the next step may be termination.

Templates: Warning Letter Based on Reasons

Below are some templates that you can utilize. You can adjust these templates based on your company needs and situations.

Template for misconduct (e.g., insubordination, harassment)

Subject: Official Warning for Misconduct

Dear [Employee’s Name],

This letter is a formal warning regarding your behavior on [date], where you were found to have engaged in [describe the misconduct, e.g., insubordination, harassment, verbal abuse, etc.]. Such actions go against company policies and workplace conduct expectations.

We take workplace discipline seriously to maintain a professional environment for all employees. If this behavior continues, further disciplinary action—including possible termination—may be taken.

We advise you to correct this behavior immediately and adhere to the company’s rules. If you have any concerns, please meet with [Manager’s Name] or the HR department.

Sincerely,

[Employer’s Name]

[Designation]

Template for poor performance

Subject: Performance Warning Letter

Dear [Employee’s Name],

We have reviewed your performance over the past [timeframe], and it has been noted that you are not meeting the required expectations for your role. Specifically, we have observed [describe issues, e.g., failure to meet deadlines, incomplete tasks, poor quality of work, etc.].

We expect all employees to meet their job responsibilities as outlined in their job descriptions. To help improve your performance, we suggest the following steps:

[Specify corrective actions, e.g., attend additional training, weekly progress meetings, setting measurable goals, etc.]
[State the deadline for improvement, e.g., performance will be reviewed in 30 days.]

Failure to improve within this period may lead to further action, including termination. We encourage you to discuss any difficulties with your supervisor.

Sincerely,

[Employer’s Name]

[Designation]

Template for absenteeism or tardiness

Subject: Official Warning for Attendance Issues

Dear [Employee’s Name],

This letter is to formally address your repeated [absences/tardiness] from work on the following dates: [list dates]. Regular attendance is important for maintaining workflow and team efficiency.

We expect employees to adhere to the company’s attendance policy, which states [summarize the attendance expectations, such as notifying in advance for absences]. If you face any challenges affecting your attendance, please communicate with your manager or HR.

Further unapproved absences or lateness may lead to stricter disciplinary action, including possible termination.

Sincerely,

[Employer’s Name]

[Designation]

Template for breach of company policy (e.g., social media misuse)

Subject: Official Warning for Policy Violation

Dear [Employee’s Name],

This is an official warning regarding your violation of [specific company policy] on [date]. The details of the breach are as follows: [describe the incident, such as misuse of company property, data security breach, inappropriate behavior, etc.].

Company policies are in place to ensure a safe and professional work environment. Any future violations may result in further disciplinary action, including suspension or termination.

You are expected to comply with all company policies moving forward. If you need clarification on the rules, please contact HR.

Sincerely,

[Employer’s Name]

[Designation]

Template for a last written warning

Subject: Final Warning Before Termination

Dear [Employee’s Name],

Despite previous warnings, we have observed that the issues regarding your [misconduct/performance/attendance] have not improved. This letter serves as a final warning before termination.

To date, you have received [number of prior warnings] regarding:

[Summarize previous infractions or performance issues]
[Mention previous warnings issued, including dates]

This is your last opportunity to correct the issue. Failure to show significant improvement within [timeframe] may result in termination of your employment. We strongly urge you to take immediate corrective action.

If you have any questions or require assistance, please reach out to [Manager’s Name] or HR.

Sincerely,

[Employer’s Name]

[Designation]

A warning letter is an important tool for keeping order in the workplace. It helps employers deal with problems fairly, document issues properly, and avoid legal risks.

By using clear warning letters, businesses can manage employee issues professionally and avoid unnecessary disputes.

Warning letters are not just about punishment. They are a way to help employees improve while keeping the workplace fair and disciplined.

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