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View full libraryThis Capability Dismissal Letter confirms the outcome of a formal capability process where an employee’s performance has not reached the required standard despite appropriate support, guidance and opportunities to improve. It provides a clear written record of the decision, reasons for dismissal, notice arrangements and right of appeal.
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<p>If you are managing employee capability concerns, the toolkit brings together practical HR templates covering assessment, support, review, improvement and outcomes.</p>
This template brings together the key information, sections and considerations you need to create a clear, comprehensive and professional HR document. Preview the document below.
[Sender name]
[Sender address]
[date]
[Recipient name]
[Recipient address]
Dear [Recipient first name],
Outcome of Capability Process
I am writing to confirm the outcome of the formal capability process concerning your performance in the role of [Job Title].
Following the capability hearing held on [Date], at which you were given the opportunity to respond to the concerns regarding your performance, I have carefully considered the information and evidence available, your response and the circumstances of your case.
I have concluded that your performance has not reached the standard required for your role and that, having considered the steps taken to support you, dismissal on capability grounds is appropriate.
Performance concerns
The concerns regarding your performance have been discussed with you on a number of occasions.
The areas where your performance has not reached the required standard include:
The required standard was explained to you through [performance meetings / objectives / performance improvement plan / written warnings / other process].
Support and opportunity to improve
During the capability process, the organisation has taken steps to support you in achieving the required
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This letter provides a formal written record of a dismissal following a capability or performance process. It is designed for circumstances where an employee has been given a reasonable opportunity to improve but has not achieved the required standard, and dismissal has been considered only after appropriate support and a fair process.
The letter clearly distinguishes capability from misconduct by explaining that the decision concerns the employee’s ability to meet the required performance standard rather than an allegation of deliberate wrongdoing.
A concise summary of the performance concerns, standards required, previous meetings, objectives and review periods provides a clear explanation of how the decision was reached.
The letter records relevant training, coaching, supervision, reasonable adjustments where applicable and other support provided. It can also refer to performance improvement plans and previous warnings or formal capability outcomes.
The decision should explain why the required improvement has not been achieved and why the organisation considers dismissal to be the appropriate outcome after considering the circumstances and any alternatives.
The letter confirms the effective date of termination, notice arrangements, final pay, outstanding holiday and other relevant leaving arrangements, together with the employee’s right to appeal.
Use these best practice actions, recommended timescales and process stages to understand when and how the Capability dismissal letter should be used, helping ensure each step is handled consistently and appropriately documented.
Understand the common mistakes to avoid when using this HR template, helping you reduce risk, prevent unnecessary costs and ensure the process is handled correctly.
Capability concerns relate to an employee’s ability to perform their role to the required standard, whereas misconduct concerns inappropriate or unacceptable behaviour. A capability process may be separate from the organisation’s disciplinary procedure, but the basic principles of procedural fairness still apply.
Not necessarily in every circumstance. The appropriate process depends on the organisation’s procedure and the facts of the case. However, the employee should normally have been given a clear understanding of the required standard, appropriate support and a reasonable opportunity to improve before dismissal is considered.
It should explain the key performance concerns and the required standard, refer to the support and opportunities provided, confirm the employee’s response at the final hearing and explain why the decision-maker concluded that dismissal was appropriate.
Potentially, but this is a particularly sensitive area. The employer must consider whether the employee is disabled, whether reasonable adjustments are required, whether the performance issue is disability-related and whether other reasonable options have been considered. Specialist advice may be appropriate before dismissal.
Employees should be given the opportunity to appeal a dismissal. The appeal should normally be heard by someone who was not previously involved in the decision and should be handled impartially.
HRDocBox templates provide a structured starting point based on UK HR practice and employment requirements. They help ensure that important elements such as the capability history, support provided, dismissal rationale, notice and appeal are addressed, while allowing the employer to tailor the letter to the individual circumstances.
How this content is developed and reviewed
The Capability dismissal letter template is developed using a practical HR methodology that considers current UK employment legislation, ACAS guidance, CIPD good practice and the real-world HR process it supports. Templates and supporting information are regularly reviewed and updated, with additional reviews triggered by significant changes to legislation, guidance or established HR practice, helping ensure each document remains practical, relevant and suitable for UK employers.
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 capability HR processes and founded hrdocbox to provide businesses with practical, professionally developed HR resources grounded in UK employment law and best practice.
HRDocBox has been creating practical UK HR documents since 2009.
"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."
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