Capability Policy

New Policy: 06/02/2023

Review Date : 06/02/2026

Purpose

This policy sets out the procedure for managing employees who are unable to meet the required standards of performance due to a lack of capability, skill, or competence. It ensures a fair, consistent, and supportive approach to performance management.

Scope

This policy applies to all employees who have completed their probationary period and whose performance falls below the required standard despite reasonable training and support.

Principles

Employees will be given the opportunity to improve their performance through training, support, and reasonable adjustments where necessary.

Performance concerns will be addressed promptly and fairly.

Informal Stage

Where performance concerns are identified, the line manager will:

Discuss concerns with the employee in a supportive manner.

Identify any training or support required.

Set clear performance expectations and a timeframe for improvement.

Monitor progress through regular feedback.

If no improvement is made, the formal capability procedure may be initiated.

Formal Capability Procedure

Stage 1 – Capability Meeting

The employee will be invited to a formal meeting with their manager and/or senior manager and given the opportunity to respond. A Performance Improvement Plan (PIP) will be set, detailing required improvements, timescales, and support available. Progress will be reviewed regularly.

Stage 2 – Further Review

If performance does not improve within the agreed timeframe, a second meeting will be held to review progress. Further support may be offered, and a revised PIP issued if appropriate.

Stage 3 – Final Capability Meeting

If performance remains unsatisfactory, a final meeting will be held. Possible outcomes include further support, redeployment, or dismissal on capability grounds.

Recurrent Performance Concerns (Less Than 2 Years of Service)

If a Performance Improvement Plan (PIP) was previously implemented, and the employee demonstrated improvement for a period but new performance concerns have arisen, the following steps will be followed:

Consideration of Past Performance: The line manager or senior manager will review the previous PIP outcomes and any factors that may have impacted performance.

If the new performance concerns are the same as those in the original PIP, a new PIP is not necessary. A formal capability meeting will be scheduled to discuss the recurrence of the same performance issues, assess why the improvements were not sustained, and provide further support if required.

Formal Capability Procedure:

Stage 1 – Capability Meeting: A formal meeting will be held to address the ongoing performance issues, providing the employee with a chance to respond and setting clear expectations for improvement.

Stage 2 – Capability Final Meeting: If performance does not improve, a final capability meeting may be held. Dismissal with notice or pay in lieu of notice may be considered if the employee is unable to meet the required standards despite reasonable support.

Right to Representation

Employees have the right to be accompanied by a workplace representative (e.g., a colleague)  at any formal stage of the capability procedure, including capability meetings and hearings.

The employee must inform the employer in advance if they wish to be accompanied and provide the name of the representative.

If the chosen representative is unavailable at the scheduled time, the employee can request a postponement to a mutually agreeable date, usually within five working days.

Appeals

Employees have the right to appeal against any formal action taken under this policy. Appeals must be submitted in writing within five working days of the decision.

Confidentiality

All matters relating to capability management will be handled with discretion and confidentiality.

Review

This policy will be reviewed every three years, sooner if necessary. 

Joe Charlesworth

Director - Highway Data Systems Ltd