Capability policy

Capability Policy

Purpose

This policy sets out the approach [Organisation Name] takes to managing issues related to employee capability.

The aim is to support staff in achieving the required standards of performance, ensuring fairness and consistency while enabling individuals to improve in their role wherever possible.

Scope

This policy applies to all employees of [Organisation Name], regardless of length of service or seniority. 

It covers situations where an employee is not meeting the required standards of performance due to lack of capability, which may be caused by skills gaps, inadequate training, or health-related factors.

General Principles

• Employees will be treated with dignity, respect, and fairness.

• Managers will work proactively to support performance improvement.

• Support mechanisms such as training, mentoring, or reasonable adjustments (where applicable) will be considered.

• The policy distinguishes capability issues from conduct (which is addressed separately under the Disciplinary Policy).

• Employees will have the opportunity to respond to concerns and be accompanied at formal meetings.

Informal Stage

Where concerns arise, the line manager will meet with the employee informally to:

• Discuss the specific areas of underperformance.

• Understand any underlying reasons.

• Agree on a support plan, timescales for improvement, and review checkpoints.

This conversation will be followed up in writing for clarity, though it is not considered a formal warning.

Formal Capability Procedure

If performance does not improve or the situation warrants immediate formal action, the process below will be followed:

Stage 1 – Formal Review Meeting

• The employee will be invited in writing to a meeting with their manager and will be given at least 5 working days' notice.

• The meeting will review concerns, support already provided, and expectations going forward.

• A Performance Improvement Plan (PIP) may be implemented, with clear objectives, timescales, and support.

Possible outcomes:

• Continued monitoring under the PIP.

• Issuing of a formal warning.

• Consideration of redeployment options (if appropriate).

Stage 2 – Further Review

If performance remains unsatisfactory after Stage 1:

• A second formal meeting will be held.

• Further support or adjustments may be made.

• A final written warning may be issued if there is still insufficient improvement.

Stage 3 – Capability Hearing

If all reasonable support has been given and performance remains below the required standard:

• A capability hearing may be arranged to consider termination on grounds of capability.

• The employee will be given the opportunity to respond and present mitigating factors.

• The outcome could include further time to improve, redeployment, or dismissal.

Right of Appeal/

Employees have the right to appeal against any formal decision, including dismissal. Appeals must be submitted in writing within 5 working days of receiving the outcome and will be heard by a more senior or impartial manager.

This policy [does not] form[s] part of your terms and conditions of employment.

Version: [1.0]

Issue date: [date]

Author: [name, job title]