Poor Performance and Capability
These Poor Performance and Capability templates are designed to help employers manage situations where an employee’s performance is not meeting the required standard or there are concerns about their capability to do the job.
Poor performance and capability issues should be handled carefully and consistently. Employers need a clear process for identifying concerns, setting expectations, reviewing progress, and, where necessary, taking formal action. A properly documented approach can help support fairness and reduce the risk of disputes about how performance concerns have been managed.
This collection brings together template letters and supporting documents for dealing with poor performance and capability issues, from the early formal stages through to warnings, performance review, and dismissal where improvement is not achieved.
When to Use These Capability and Performance Templates
These templates are useful where an employer needs to address underperformance, monitor improvement, and communicate formal performance management steps clearly to an employee.
They are particularly relevant where concerns need to be escalated into a formal process, where a performance improvement plan is required, or where continued poor performance may lead to warnings or dismissal.
A Structured Approach to Performance Management
The documents in this collection support a staged approach to managing performance concerns. They help employers set out the nature of the problem, explain the standard required, record improvement targets, and confirm the outcome of formal review stages.
They also support situations where performance improves, allowing employers to acknowledge that progress and maintain a clear written record of the process.
Practical Support from Warning to Dismissal
Taken together, these templates provide a practical framework for handling poor performance and capability issues in a more organised and procedurally sound way. They are intended to work alongside a disciplinary policy and procedure and related guidance on disciplinary handling.
Poor Performance and Capability is part of Employment. Just £38.50 + VAT provides unlimited downloads from Employment for 1 year.
Frequently Asked Questions
My employee is not meeting the required standard. Where do I start before moving to formal action? +
Before starting a formal disciplinary or capability process, Acas recommends taking steps to help the employee improve, such as having a private conversation to explain the concern, setting clear expectations and offering appropriate support or training. Keep a written record of any discussions. If informal steps do not resolve the issue, you can move to a formal process. The Performance Management Review Procedure and Performance Improvement Plan templates in this Simply-Docs collection support both stages.
What is a Performance Improvement Plan and when should I use one with an underperforming employee? +
A Performance Improvement Plan (PIP) is a formal written document setting out the performance concerns, the standard required, measurable targets, the support the employer will provide and a review timeline. Acas recommends considering one after informal steps have not resolved the issue. Although not required by statute, once used a PIP must be handled fairly and in line with the Acas Code of Practice on disciplinary and grievance procedures. This Simply-Docs collection includes a PIP template and a worked example to help employers structure the plan correctly.
How do I handle performance concerns if the employee may have a disability or health condition affecting their work? +
Where poor performance may be caused or worsened by a disability or health condition, take particular care and seek specialist legal advice before dismissing. The Equality Act 2010 requires reasonable adjustments to remove or reduce disability-related disadvantage. Acas guidance says capability issues can sometimes be resolved by adjustments such as changing working hours or providing specialist equipment, with dismissal a last resort. Failing to adjust before dismissing could give rise to a disability discrimination claim, brought regardless of length of service, as well as unfair dismissal.
What documents do I need to manage a poor performance case from the first warning through to dismissal? +
Manage a capability case with documents covering each stage: a notice inviting the employee to a first disciplinary hearing for poor performance, a first formal warning letter setting improvement targets, a Performance Improvement Plan recording targets, support and review dates, acknowledgement letters where performance improves, a notice inviting a final hearing if improvement is not sustained, a final formal warning letter and, if dismissal becomes necessary, a formal notice of dismissal. The Simply-Docs collection provides templates from the Notice Of First Disciplinary Poor Performance Hearing through to the Poor Performance And Capability Notice Of Dismissal, designed to work alongside a disciplinary policy.
What should happen if the employee's performance improves during or after a formal capability process? +
Acknowledge the improvement in writing and confirm the employee has met the targets set in the Performance Improvement Plan, which demonstrates procedural fairness and maintains a transparent record. Use the Acknowledgement Of Improved Performance Post First Hearing Or Warning and the Improved Work Performance Confirmation Letter. Maintaining these records is good practice even where no further action is taken.
