Capability policy template

Capability policy template

A clear Capability Policy template that supports fair, consistent capabiility management and shows commitment to a supportive process.

£9.90
Specifications
Access 12 months (includes updates)
Length 576 words · 2 pages
Jurisdiction England, Wales and Scotland
Based on UK employment law, ACAS guidance
Last review 01/08/2026
Next review 01/02/2027
Delivery Instant download
Formats .doc · .txt · email

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Template

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

  • Employees will be treated with dignity, respect, and fairness.

  • Managers will work proactively to support performance improvement.

  • Support mechanisms such as training, mentoring, or reasonable adjustments (where applicable) will be considered.

  • The policy distinguishes capability issues from conduct (which is addressed separately under the Disciplinary Policy).

  • Employees

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For more value, this is also found in our Full library and Conduct policy templates

What is a capability policy?

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.

Related Conduct HR templates

Frequently Asked Questions

Can I use this in my small business?

Yes. This template has been designed for organisations of all sizes, including small businesses, charities and growing employers. It follows UK employment law best practice and can be adapted to suit your organisation.

Is it compliant with 2026 UK employment law?

Our templates are developed with UK employment legislation, Acas guidance and HR best practice in mind and are reviewed and updated as relevant requirements change. However, every employment situation is different, so the template should be adapted to the circumstances and checked against the employee's contract and your organisation's procedures before use.

Can I customise it for my organisation?

Yes, we highlight the areas of the document 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.

Do I get instant access to it?

Yes. Once purchased, you'll be able to download it instantly. Templates are provided in editable format (such as .doc or .xls) so you can customise them easily, and in PDF format for easy sharing.

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 the Capability policy template, along with other HR templates and policies for fully managing your situation. These may be more cost-effective if you need deeper advice.

Why should I use this Capability policy template, and not AI to generate it?

AI can produce a document quickly, but effective HR documentation needs to be more than well-written words. It needs to reflect relevant UK employment law, HR best practice, practical considerations and the circumstances in which it will be used. These resources have been professionally developed around that wider HR context, drawing on extensive practical experience, rather than simply generating a generic document from a prompt.

About the author

Darryl Horn, Chartered HR Director

Darryl is a Chartered HR professional with over 25 years' experience in senior HR and employee relations roles.

He has extensive practical experience of managing conduct processes and founded hrdocbox to provide businesses with practical, professionally developed HR resources grounded in UK employment law and best practice.

Executive recommendation

"Darryl provides support and advice with excellent judgement, and has a strong understanding of people, policies and UK employment legislation."

"He is someone I trust; consistent, dependable, and committed to doing things properly."

RB
Ruth Brock Chief Executive Officer The Hygiene Bank
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