Capability dismissal letter template
Supporting information
Confirms the dismissal of an employee following a capability process and provides key details, next steps, and appeal rights.
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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What is this for?
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.
Process timescales
Best practice for using the Capability dismissal letter template, including key actions 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 |
