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

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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What is this for?
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.
