Capability policy template
A clear Capability Policy template that supports fair, consistent capabiility management and shows commitment to a supportive process.
- 2 pages / 576 words.
- Last updated 19/04/2025.
- Designed for United Kingdom use.
- Suitable for use in other territories; check local laws first.
- Instantly download as Word / PDF / plain text, or send by email.
- Includes 12 months’ access, with all updates to this page provided free of charge and notified to you.
Capability policy
1 Purpose
1.1 This policy sets out the approach [Organisation Name] takes to managing issues related to employee capability.
1.2 The aim is to support staff in achieving the required standards of performance, ensuring fairness and consistency while enabling individuals to improve in their role wherever possible.
2 Scope
2.1 This policy applies to all employees of [Organisation Name], regardless of length of service or seniority.
2.2 It covers situations where an employee is not meeting the required standards of performance due to lack of capability, which may be caused by skills gaps, inadequate training, or health-related factors.
3 General Principles
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Employees will be treated with dignity, respect, and fairness.
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Managers will work proactively to support performance improvement.
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Support mechanisms such as training, mentoring, or reasonable adjustments (where applicable) will be considered.
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The policy distinguishes capability issues from conduct (which is addressed separately under the Disciplinary Policy).
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Employees
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This policy helps organisations take a consistent and thoughtful approach to addressing capability issues.
It offers managers a clear route to follow when performance falls short.
Employees benefit from a process that prioritises support, communication, and fairness.
Adopting this policy reflects a commitment to doing the right thing - for people and the organisation.
Send to appropriate internal recipients such as employees, workers, contractors etc. and request confirmation that is has been read and understood.
Issue during onboarding / after changes / planned refresher.
Frequently Asked Questions
Frequently Asked Questions
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Can I use this template in my small business?
Yes. The Capability policy template is designed to be flexible and suitable for organisations of all sizes, including small businesses and charities. It follows UK employment law best practice, so even if you don't have an in-house HR team, you can confidently apply it.
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Is this template compliant with 2025 UK employment law?
Absolutely. All of our templates are drafted with the latest ACAS guidance and UK employment legislation in mind. We review and update them regularly, so you can be confident they remain compliant.
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Can I customise it for my organisation?
Yes, we highlight the areas that you need to update with your own details, and where you need to make decisions to suit your situation. This saves you time and ensures that you meet best practice.
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Do I get instant access?
Yes. Once purchased, you'll be able to download it instantly. Templates are provided in editable Word or Excel format so you can customise them easily, and in PDF format for easy sharing.
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What if I need more help, not just this template?
If you're looking for broader support, we also offer toolkits and library bundles that include this template, along with other HR templates and policies for fully managing your situation. These may be more cost-effective if you need deeper advice.
