The notice was served on February 12 following action from the four Dublin local authorities after some homes in Dublin were left without a collection for over a month.
Greyhound took over the contract to collect dry recyclable waste from 360,000 homes across Dublin from competitor Oxygen in January 2009.
A statement issued to MRW by Dublin City Council yesterday confirmed that the performance failure notice had been issued but they declined to comment on the issue any further.
A spokesman from Greyhound said: Greyhounds service schedule during January was disrupted by the severe weather conditions which were the worst the country has experienced in 50 years.
Some collections were not possible due to poor access and the necessity to preserve public safety and the safety of our employees.
Greyhound notified customers of delays and of rescheduled collections through the Green Bin website and other media channels. All service schedules returned to normal before the end of January.
Greyhound is committed to working with Dublin City Council to provide customers throughout Dublin with the highest standards of service.
Its spokesman also confirmed that, contrary to some reports, Greyhound is not a member of the Irish Waste Management Association which is opposed to Dublin councils Poolbeg incinerator.