Dismissal for poor performance: when it’s fair and when it isn’t

Guidance from an HR consultant in Ipswich on what needs to happen before you can fairly dismiss someone for poor performance.

If you are reading this, you may be thinking, this person just is not doing the job, so surely I can let them go. That reaction is common. Poor performance slows work down, frustrates the team, and takes up more of your time than it should.

What feels obvious day to day is not always straightforward in practice. Acting too quickly is where many small employers run into trouble. If you want external support, HR consultancy services in Ipswich can help you follow a fair, documented approach.

Dismissing someone for performance can be fair, but only if you have taken the right steps first. Skipping conversations, failing to offer support, or not keeping records can turn a reasonable decision into a legal and financial risk.

Why poor performance needs careful handling

Poor performance affects your bottom line. It delays delivery, damages morale, and often lands back with you to sort out.If a dismissal looks rushed or unfair, it can be challenged. When that happens, the process you followed is examined in detail.

Dismissal should be the outcome, not the starting point. Wherever possible, the aim should be improvement first, with a clear and fair process if dismissal becomes unavoidable.

Pause and diagnose the issue

Before moving towards dismissal, stop and ask some basic questions:

• Is the issue about skills, workload, or motivation?

• Have the right training and tools been provided?

• Were expectations clear and realistic from the start?

  
  

This simple check often uncovers fixable problems, such as unclear instructions, unrealistic targets, or gaps in training. Addressing these early can avoid the issue escalating.

Start with a factual conversation

Begin informally. Explain what is not working, the impact on the business or team, and what needs to change and by when.

Keep the conversation calm and factual. Avoid personal criticism. In many cases, clarity alone is enough to improve performance.

If the informal conversation does not work, move to a structured approach rather than jumping straight to formal action.

Use a structured improvement plan

If informal steps do not lead to improvement, put a documented plan in place. This gives the employee a fair chance to improve and protects you if dismissal is later considered.

A sensible plan should include:

• clear, measurable objectives

• a shared understanding of what acceptable performance looks like

• an agreed timescale for improvement

• support such as training, mentoring, or workload changes

• regular follow-up meetings to review progress

This should be treated as a genuine opportunity to improve, not a box-ticking exercise.

Follow policy and the ACAS Code

If performance still does not improve, a formal capability process may be needed. This should:

• follow your internal procedures

• follow the principles of the ACAS Code

• give the employee the chance to respond and provide explanations

• consider evidence and any mitigating factors

• include warnings where appropriate and the right of appeal

This process will be closely reviewed if a dismissal is challenged, so it needs to be fair and consistent.

Keep good records

Clear records are one of your strongest protections. Make sure you document:

• key conversations and dates

• agreed actions and support provided

• warnings issued

• any improvement or ongoing concerns

A clear paper trail helps show that you acted reasonably and fairly.

Watch for legal changes

At present, employees usually need two years’ service to bring an ordinary unfair dismissal claim, with some exceptions. Under the Employment Rights Act 2025, this qualifying period will be reduced to six months, as confirmed by the government.

In practical terms, this means:

• expect performance dismissals to face closer scrutiny

• tighten probation and performance processes now

• keep policies and records up to date

Preparing early reduces future risk.

So, can you dismiss someone for poor performance?

Yes, but only if:

• expectations were clear from the outset

• support and reasonable time to improve were given

• a fair process was followed

• records were kept throughout

• alternatives were considered and documented

• 
  

Every situation is different. If you are unsure, get advice before making a final decision.

How an HR consultant can help

Managing poor performance alongside running a business can feel overwhelming. An HR consultant can help by:

• reviewing what has happened so far and identifying gaps

• planning next steps in line with good practice

• sense-checking fairness and documentation

• updating policies and probation processes

An outside perspective can reduce pressure and help you make decisions that protect your business.

If you want to talk through a specific situation, I can help as an outsourced HR consultant in Ipswich. Get in touch to book a short, confidential discovery call.