Capability Policy and Procedure – this policy does not apply to any employee in their probation period

1. Introduction

The aims of this procedure are:

• To help and encourage employees at all levels to fulfill the role they are contracted to perform by meeting the performance detailed in the role profile
• To formally manage unsatisfactory performance.
• To ensure that any action on the grounds of unsatisfactory performance taken is fair and reasonable and provides all employees with the right to appeal.

The need to take action on grounds of unsatisfactory performance will arise where an employee is not performing to required standards results in the employee being unable to fulfill their responsibilities to the Company, its customers or other employees. In many cases these standards will be specifically expressed in the job description, competencies, or performance review.

Wherever possible, action on grounds of unsatisfactory performance will not lead to dismissal. However, the Company has the right to dismiss an employee if he/she fails to respond to warnings, resulting in him/her not meeting the required standard of performance for the role that he/she is employed to do.

The procedure is to encourage improvement in relation to performance so that dismissal can be avoided. An employee will be given adequate time to improve their performance and meet the required standard. This is separate to the probation process.

Line Managers can choose to deal with minor instances of poor performance informally, by way of counselling, guidance or instruction, by informally cautioning the employee or through the application of a Performance Improvement Plan (PIP). The purpose of informal meetings will be to advise the employee of their shortcomings and agree an action plan for improvement. All correspondence relating to meetings will be documented and retained on the employee’s personnel file in accordance with the Data Protection Act. If a problem continues or the manager judges it to be sufficiently serious, the formal procedure will apply.

The purpose of the capability procedure is to assist employees in improving their performance so that dismissal can be avoided. An employee will be given adequate and reasonable time to improve their performance and meet the required standards. Where a training need is identified, the timetable for review will take this into account and provide opportunity for the employee to put any learned skills into practice.

If the formal procedure is applied, the employee will be advised of the issue to be discussed prior to an initial interview and will be given adequate and reasonable time to prepare. A work colleague may accompany the employee, if they wish, at all stages of the procedure. The work colleague will be a permanent employee of the Company or a trade union representative. A member of Human Resources or another manager will accompany the manager conducting the interviews.

Action under this policy will only be taken once the employee has had the opportunity to state their case and it has been fully considered.

Since the capability procedure relates to performance issues and not to conduct, the application of the procedure and timescales will reflect the nature of the issue, the circumstances of the employee and their length of service.

At each stage of the procedure the Line Manager will need to keep details of performance issues and the necessary steps for improvement to the required level. Employees will be given ample opportunity to discuss their shortcomings and any mitigating circumstances affecting their performance.

At each stage of the procedure the employee will be informed of the outcome of the meeting in writing, together with standards of performance that are required, timescales for improvement and any agreed support.

Employees have the right to appeal against any formal action taken against them under this procedure.

2. Levels of Action

All levels of warning will be administered by the Line Manager a Director or with HR and are as follows:

a. Informal Meeting(s)

The Line Manager may conduct one or more informal meetings with the employee prior to invoking the formal procedure. Under these circumstances the employee will be advised of their shortcomings and a Performance Improvement Plan (PIP) for improvement with specific timescales will be agreed. A file note of discussions will be placed on the employee’s file and a copy given to the employee. Where there is no evidence of improvement the formal procedure will be invoked as set out below.

b. First Written Warning Level 1

Where there is failure to respond to the Performance Improvement Plan (PIP) your Manager may decide to invoke a formal procedure. Alternatively, if the warning is serious enough to warrant this, your manager may advance immediately to this level. In such cases you will be invited to attend a meeting with your Manager to discuss your performance. The outcome of this meeting may result in you being given a first written warning. If there is a substantial and lasting improvement in your performance, your warning will lapse after six months from the date it is issued. At the end of six months, your Manager will inform you whether the warning has lapsed or when it will next be reviewed. You are entitled to be accompanied by a Trade Union Representative or a fellow employee of your choice at this meeting. You will be informed of your right to appeal at this stage.

c. Final Written Warning

If, during the period your first written warning is live, you continue to perform to an unacceptable level then your Manager will hold another meeting to discuss your performance levels and the reason for them. This may result in you being given a final written warning. You will be informed that unless your performance improves and is maintained at an acceptable level, then dismissal may follow. If there is a substantial and lasting improvement in your performance then this final written warning will lapse after a period of twelve months. Your Manager will inform you after twelve months whether the final written written warning has lapsed or when it will next be reviewed.

The manager will continue to measure the employee against the required standards and agreed action plan. If at any time during the duration of the Final Written Warning the required improvement does not take place then dismissal may follow.

If, during the period your final written warning is live, you continue to perform to an unacceptable level then your Manager will hold another meeting to discuss your performance levels and the reason for them. This may result in you being dismissed with notice.

d. Dismissal with Notice

Dismissal on the grounds of capability will apply where there is a failure to respond to previous warnings. The employee will receive a written explanation of the reasons for dismissal.

e. Alternative Action

The procedure also allows for demotion or transfer to take place as an alternative to dismissal, where the Company deems this to be a practical and appropriate alternative, and the employee is in agreement.

The employee will receive details of any warning specifying:
the reason for the warning
the improvement required
the need for improvement on a sustained basis
any training or support that will be provided
the date by which the improvement is required
what will happen if the agreed standard is not achieved
the appeals procedure

3. Timetable for Improvement

Line Managers will agree a fair and reasonable improvement plan with employees at all stages of the capability procedure. .This process is applicable at all stages of the capability procedure.

Managers will use interim reviews with employees subject to this procedure to discuss the improvement plan; these meetings will be minuted.

4. Appeals

Employees who feel that action under the capability procedure taken against them is unfair have the right of appeal. The Appeals Procedure as outlined under the Disciplinary Appeals Procedure is applicable in such instances.

There are no exceptions to this procedure.