The key aim of this study is to examine the relationship between performance appraisal at private firms and legal termination in Kurdistan; the research intended whether staffs are terminated according to their poor performance after being assessed by performance appraisal management. The researcher applied quantitative method in this study to examine the collected data from four various private firms to find out whether employees are terminated based on their poor performance after being evaluated by performance appraisal management system. The researcher distributed a hundred questionnaires, though only 68 questionnaires were received. The findings of this study demonstrated that there is poor and weak association between the evaluation of performance appraisal and legal termination at private firms.