Do not treat every performance problem as misconduct. Establish the cause, make expectations measurable and give proportionate support before moving towards a formal outcome.
Capability or conduct?
Capability generally concerns skill, aptitude, health or another factor affecting a person's ability to do the job. Conduct concerns behaviour or a deliberate failure to follow a reasonable instruction.
The distinction matters because the questions, support and procedure may differ. Start by establishing the facts rather than labelling the issue too early.
- Capability: unable despite reasonable effort or support
- Conduct: unwilling, careless or deliberately non-compliant
- Ill-health capability: performance or attendance affected by health
- Mixed cases: investigate the underlying cause before choosing a route
Start with role clarity and reliable evidence
An employee cannot respond fairly to vague concerns. Link the issue to agreed duties, objectives, quality standards, deadlines or behaviours and use examples that can be discussed.
Check whether expectations were communicated, training was adequate and comparable employees are being assessed consistently. Sudden deterioration may signal workload, health, disability, conflict or personal circumstances that need exploration.
- Current job description and objectives
- Specific examples, dates and business impact
- Previous feedback, supervision and training
- The employee's explanation and suggested support
Use a practical improvement plan
A performance improvement plan should make success understandable. State what must improve, how progress will be measured, the support available, review dates and the possible consequences if sufficient improvement is not achieved.
Targets need to be realistic for the role and timeframe. Managers should provide the promised support and document meaningful review conversations—not simply wait for the deadline.
- A small number of measurable priorities
- Training, coaching, resources or closer supervision
- Regular review meetings with written summaries
- A reasonable period that reflects the issue and role
Moving to a formal capability procedure
A formal process may be appropriate where concerns are serious or an informal plan has not produced sufficient improvement. Follow the organisation's policy, provide the evidence in advance and give the employee an opportunity to respond.
Warnings should explain the required improvement, review period and potential next stage. Any dismissal decision requires particular care, a fair reason and a reasonable process.
- Written invitation and clear concerns
- An impartial meeting and meaningful response
- Written outcome with expectations and timescale
- A suitable appeal route
Health, disability and adjustments
Where health may affect capability, obtain appropriate information and discuss support. An occupational-health opinion may help, but it should be considered alongside the role, workplace evidence and the employee's own account.
Employers must consider disability-related obligations and reasonable adjustments where relevant. Avoid assumptions about diagnosis, prognosis or what a person can do.
- Discuss barriers sensitively and confidentially
- Consider adjustments to duties, equipment, hours or support
- Review whether adjustments are effective
- Take tailored advice before high-risk decisions
Originally published 11 February 2025. This guide provides general information for employers and is not legal advice. Employment law and guidance can change; check current requirements and take advice on the facts of a live situation.