How to handle capability procedures
Managing staff capability can be one of the more complex aspects of running a business or managing a team, as it directly deals with employee performance levels. In the UK, there are specific disciplinary procedures in place to ensure that capability issues are handled fairly and legally. These procedures are intended to help employees improve when possible and to make fair decisions if their performance doesn’t meet the expected standards.
This guide will break down what capability procedures are, how they work, and what an employee should do if they find themselves going through one. We’ll cover everything from the initial meetings to warnings, decisions, and appeals.
What is “capability” in the workplace?
In the workplace, “capability” refers to an employee’s ability to do their job effectively and meet the standards set by their employer. Capability issues are usually about performance, rather than conduct, and can arise if an employee struggles to meet their job’s requirements or doesn’t meet expected performance standards consistently.
For example, a capability issue may arise if an employee is repeatedly unable to meet sales targets, struggles to complete tasks on time, or lacks specific skills needed for their role. This may be due to a range of reasons, such as a lack of training, an illness affecting performance, or a mismatch between the employee’s skills and the role’s demands.
Capability issues may arise from an employee’s disability. Where this is the case, it is important the employee makes the employer aware of their disability, why this is the reason for performance issues, and proposes reasonable adjustments. It could be disability discrimination if the employer refuses.
See also: Disciplinary procedures for sickness & Disciplinary procedures for misconduct
Formal capability procedures
A step-by-step guide to how capability procedures work
When an employer identifies that an employee is having performance difficulties, they should take steps to address the situation in a structured and fair way. The capability process is usually broken down into formal stages, each designed to give the employee opportunities to improve. Let’s look at each stage in detail:
1. Informal discussion
Before starting formal procedures, many employers begin with an informal discussion. This initial meeting is often a friendly, private conversation between the manager and employee. The goal is to explore any challenges the employee may be facing, offer support, and identify ways to improve performance without needing to move into formal procedures.
However, if the performance issues persist, it may be necessary to start the formal capability procedure.
2. The first capability meeting
If informal discussions haven’t resolved the issue, a formal capability meeting may be arranged. During this meeting, the employer will explain:
- The specific areas where the employee’s performance needs improvement.
- Why these issues are important for the role and the organisation.
- The potential consequences if the issues are not resolved.
The employee will also have an opportunity to respond, explain any difficulties they’re facing, and ask questions. They may be allowed to bring a companion (such as a work colleague or union representative) to the meeting for support.
During this first meeting, the employer will outline a Performance Improvement Plan (PIP) or similar document. This plan details specific performance targets, time frames for improvement, and any support the employer will provide, such as additional training or coaching.
3. Issuing warnings
If the employee’s performance does not improve according to the agreed-upon targets, the employer may issue formal warnings. These warnings act as a record that the capability issue persists and show that the employee is aware of the consequences if they do not improve.
Types of Warnings:
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First written warning: The first warning is generally issued if performance doesn’t improve after the initial meeting and support phase. This warning should be in writing, specifying what improvements need to be made and by when.
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Final written warning: If performance continues to fall short, a final written warning may be issued. This is a more serious step, and the employer may include a clear indication that failure to improve could result in termination.
Each warning should come with a follow-up plan, additional support, and another review period to see if improvement is possible.
4. Further capability meetings
If performance issues continue even after a final warning, another capability meeting may be held. At this stage, the employer may need to make a decision on the employee’s future with the organisation. They’ll review the efforts made, discuss any improvement shown, and consider any extenuating circumstances.
5. Decision on termination or alternative options
After a series of meetings and warnings, if the employee still fails to meet the required standards, the employer may have to consider termination. However, other options may be explored first, including:
- Redeployment: Moving the employee to a different role within the organisation that may better suit their skills.
- Reduction in responsibilities: Adjusting the employee’s role to match their capability, possibly with a change in pay if necessary.
In cases where termination is decided, it should only come after all other options have been considered, and the process should be carefully documented to show that every effort was made to help the employee improve.
6. Appeal process
If an employee feels that the capability procedure or termination decision was unfair, they have the right to appeal. The appeal process is an opportunity for the employee to present their case to someone who wasn’t involved in the original decision, usually a higher-level manager or an HR representative.
The appeal should cover why the employee feels the process was unfair, and they can bring forward any new evidence or explanations for their performance issues.
How to handle a capability procedure as an employee
Tips for navigating the capability process effectively
Going through a capability procedure can feel stressful, but remember that this process is designed to give you a fair chance to improve. Here are some tips for handling a capability process:
1. Stay calm and open to feedback
When your manager approaches you with performance concerns, stay calm and avoid reacting defensively. Capability procedures are designed to support improvement, so it’s in your best interest to listen and understand what’s expected of you.
2. Ask for support and clarification
If you don’t fully understand the expectations or feel you need more help, ask for it. Employers are usually willing to provide extra support, whether it’s more training, time management assistance, or specific resources to help you succeed.
3. Follow your performance improvement plan closely
Once you’ve been given a PIP, pay close attention to the goals set for you. Keep track of your progress, ask questions if you’re uncertain about any targets, and document any support or resources you’re given along the way.
4. Attend all meetings and take notes
Participate actively in any meetings related to your performance and take notes to stay organised. This will help you keep track of feedback, next steps, and any concerns you want to address.
5. Prepare for an appeal, if necessary
If the procedure results in a warning or a decision you feel is unjust, gather any evidence you may need for an appeal. This could include emails, documentation of your performance, or statements from colleagues who have witnessed your improvement efforts.
Conclusion
Capability procedures in the UK are designed to help employees meet the standards required for their roles. They provide a structured approach for improvement, offering support and guidance along the way. By understanding each stage—from informal meetings to appeals—employees and employers alike can navigate the process with clarity.
If you’re an employee undergoing a capability procedure, remember that the goal is to help you succeed. Stay calm, ask for support, and follow your performance plan closely. If it comes to an appeal, ensure you have the documentation to support your case. With a clear understanding of the process and a commitment to improvement, capability issues can often be resolved positively.
If your capability procedure results in termination and you feel you were not given a fair chance to improve, or your PIP was unreasonable and pretext to dismiss you, you may have a case for Unfair Dismissal.
