A show cause letter is a written notice asking the employee to explain or to "show cause" why he should not be given disciplinary action given what he did or did not do.
As for whether a reminder is necessary prior to the show cause letter, it really depends on the labor laws of the place where you work in. In some jurisdictions, the show cause letter itself serves as the first notice. The employee then submits his written explanation and then a second notice is required called a Notice of Decision.
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