Capability dismissal letter template
Confirms the dismissal of an employee following a capability process and provides key details, next steps, and appeal rights.
- 1 page / 145 words
- Instantly download as Word / PDF / plain text
- Suitable for worldwide use (but check local legislation)
- Includes 12 months’ access, with all updates to this page provided free of charge and notified to you.
Capability dismissal letter
[Sender name]
[Sender address]
[date]
[Recipient name]
[Recipient address]
Dear [Recipient first name],
Outcome of final stage capability hearing
I am writing to confirm the outcome of the final capability hearing held on [Date], which was chaired by [Chairperson’s Name and Job Title].
Following careful consideration of the information presented, the decision has been made to terminate your employment with [Company Name]
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This template confirms dismissal following a final capability hearing and outlines the rationale, termination date, and notice or pay arrangements.
It provides clear information on appeal rights, helps protect against procedural risk, and ensures the process remains fair and transparent.
Use this letter when performance issues have not improved despite formal support and the final stage has been reached.
Timings
Timings
Follow these best practice actions to get the most from the Capability dismissal letter template, guiding you before, during, and after implementation:
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| Step | Description | Responsibility | Timing |
| 1 | Identify and document ongoing performance concerns, providing support, clear expectations, and time to improve through a formal capability process. | Line Manager / HR | Over a period of 4–12 weeks, depending on policy |
| 2 | Conduct a formal capability review meeting to assess progress. If insufficient improvement is made, consider dismissal as a potential outcome. | Line Manager / HR | 1–2 weeks after review period ends |
| 3 | Hold a final capability hearing, allowing the employee to respond. Consider all evidence before making a decision to dismiss. | Senior Manager / HR | 1 week after review meeting |
| 4 | Draft and issue the Capability Dismissal Letter, confirming the outcome, reason for dismissal, notice period, appeal rights, and final pay. | HR | Within 2–3 days of the dismissal decision |
| 5 | Complete follow-up actions including processing final pay, revoking system access, arranging return of company property, and recording the outcome. | HR / Payroll / IT | Within 1 week of letter being issued |
Frequently Asked Questions
Frequently Asked Questions
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Can I use this template in my small business?
Yes. The Capability dismissal letter 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. Like the Capability dismissal letter template, 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 this template for my organisation?
Yes, in the Capability dismissal letter template, as with all of our templates, 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 to the template?
Yes. Once purchased, you'll be able to download the Capability dismissal letter template 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 the Capability dismissal letter template along with other HR templates and policies for fully managing your situation. These may be more cost-effective if you need a complete HR library.
