Capability Policy & Procedure

V1 June 22 Capability Policy & Procedure

DOCUMENT CONTROL

Role Name/Position
Guidance author:

Document Status History:

Version Date Reason for Update
1.0 New document

Document Review Date:

Review Date:
Responsible Person:

Distribution:
Name Title
Glynn Carlisle CEO
Wayne Brierley Managing Director
Louise Mooney Operations Director
Sean Taylor Finance Director
Steven Mooney Head of Field Services
Damian Biggs Transport Manager
All Staff

V1 June 22 Capability Policy & Procedure

 Contents

Chapter Subject
1.0 CAPABILITY POLICY
1.1 Introduction
1.2 Scope
1.3 Key Principles
1.4 Definition of Capability
1.5 Before a Formal Procedure is taken – support/counselling

2.0 CAPABILITY PROCEDURE

2.1 Record of Events
2.2 Representation
2.3 Formal Procedure
2.4 Alternative Work
2.5 Appeal against Dismissal
2.6 Monitoring Information
2.7 Status of Policy & Procedure

V1 June 22 Capability Policy & Procedure

1.0 CAPABILITY POLICY

1.1 Introduction
The Company recognises that its employees are its most important asset and is committed to
ensuring that all staff have the appropriate skills, knowledge, competence, and aptitude to
undertake their role effectively.

Employees performing below the standards expected in their role will have a detrimental effect on
service provision. In such circumstances it is the responsibility of management to bring this to the
attention of the individual and to work closely with them to improve performance to an acceptable
level.

This procedure runs parallel with, but is not part of, the disciplinary procedure. The Company
recognises that poor job performance and incapability should not initially be treated as "disciplinary
offences".

The first stage in dealing with poor job performance is to determine whether the matter is one of
capability or misconduct. This can normally be ascertained by counselling and investigation.

Incapability is where the employee has received all necessary training but still cannot achieve a
satisfactory level of performance through no fault of his/her own. If, on the other hand, the
employee fails to reach the required standard of performance as a result of carelessness, negligence
or lack of effort, this will be treated under the disciplinary procedure as misconduct.

The procedure may be accelerated during contractual probationary periods.

1.2 Scope
This policy and procedure applies to all staff and shall be applied equally to all staff.

No action relating to performance may be undertaken outside of this capability policy and
procedure.

1.3 Key Principles

It is important that an agreed process is followed where underperformance is identified and action is
required. The procedure will:

 Ensure that a fair and reasonable process exists where an employee is experiencing
performance difficulties.

 Ensure that the cases of poor performance are handled appropriately with any underlying
reasons taken into account,

 Ensure that employees are offered support and appropriate training within a performance
review framework.

V1 June 22 Capability Policy & Procedure

Whilst every effort will be made to help an employee improve their performance and to retain them
in post, the Company cannot guarantee to maintain employment if their expected level of
performance is not achieved following the exhaustion of the Capability Procedure.

1.4 Definition of Capability

For the purposes of this policy and procedure, capability is assessed with reference to skill, aptitude,
competence, knowledge and ability, for example, adequacy of skills, professional insight, ability to
cope with reasonable workloads, identified standards or to distinguish appropriate priorities.

Incapacity due to ill health is dealt with under the Company’s Management of Sickness Absence
Policy and Procedure.

1.5 Before a Formal Procedure is Taken – Support / Counselling

Where employees are experiencing difficulties with performance, the problem should be addressed
when it first becomes apparent. During this discussion, the following should be discussed:

 The standards of job performance required.

 The observed shortcomings identified.
 The possible reasons for the shortfall.
 The agreement of how and when improvements in performance might be achieved, including
support required, and whose responsibility it is to provide that support.
 An agreed and reasonable period for review (but no longer than 3 months).
 Feedback during the review period regarding progress towards improvements in performance.
 Consequences of failure to improve i.e. formal action under this policy.

Account should be taken of the employee’s work circumstances as well as outside influences that
might be impacting on their performance at work.
A record of such discussions and any agreement will be retained within the HR department, with any
agreed outcomes confirmed in writing.
If, at the review meeting, it is evident that the required improvement has been made then the
employee should be made aware of this and for the need to sustain this improvement.
Should some improvement be evident, but the required standards not yet achieved, the review
period should be extended.
If there has been no discernible improvement, and no mitigating circumstances identified, the
formal procedure should be followed.

V1 June 22 Capability Policy & Procedure

2.0 CAPABILITY PROCEDURE
This procedure should be followed if, after support and counselling, the individual, for whatever
reason, experiences an inability to meet the requirements of the job.
The objective should always be to set out a constructive approach to achieving improved work
performance through effective supervision, mentoring, support, training and development.

It is essential that all employees are aware of the range of duties to be undertaken, and the
performance and standards of work expected of them.
A record of discussions and agreed actions must be retained by the HR department (a copy of which
should be provided to the employee) at all stages of the procedure.
At all stages of the formal procedure, a written confirmation of discussions and agreed actions
should be sent to the employee.

2.1 Record of Events

Either a member of the HR department or the Supervisory team shall take notes of any formal stage
in the procedure. The notes are not intended or required to be a verbatim record, but an account of
the main points discussed. The employee shall be at liberty to keep their own written record of the
hearing if they so wish.

2.2 Representation
At all formal stages of the Capability Procedure, the employee will be entitled to representation by a
union representative or work colleague (not acting in a legal capacity) and should have adequate
notice to allow them to prepare for the meeting (i.e. 2 working days’ notice).

2.3 Formal Procedure

When it becomes apparent that a supportive / counselling approach to improving performance has
been unsuccessful, the employee will be advised of this, and that the formal procedure will be
followed. This will be confirmed to the individual in writing by the HR department.

At all formal capability meetings a member of the Human Resources department or the supervisory
team will be present to take notes and managers/supervisors must have clear examples of how the
employee is under-performing, with records and evidence to support this.

STAGE ONE – first written warning

The employee will be advised that a formal meeting will be taking place including time and date of
the meeting, the purpose of the meeting and the issues to be discussed at the meeting.

The purpose of this meeting will be to:

 Identify clearly and fairly the ways in which the employee is under-performing.
 Identify the support already provided as part of the informal process.
 Ensure that the employee is clear as to the concerns about performance, the standards that are
reasonably required, and the particular areas where there are shortfalls.

V1 June 22 Capability Policy & Procedure

 Identify possible causes for the shortfall.
 Discuss and agree a programme of support and monitoring, which may include:
o Extra support and supervision from the manager.
o Retraining or further training on or off the job.
o Setting and reviewing specific targets which are agreed.
o A temporary placement in another department subject to the agreement of all parties.
o Counselling / welfare assistance depending on the nature of the problem.
o An appropriate referral to Occupational Health, and action on advice contained within
any subsequent report.
o Mentorship and peer support.
 Allow the employee to have the opportunity to challenge and / or put forward any facts and
evidence for consideration.
 Agree a monitoring review period, ensuring that the employee is clear about timescales and
when their performance will next be discussed (no longer than three months).

The key points of the meeting and the agreed action plan should be detailed in writing to the
employee along with the potential consequences of failure to achieve a significant and sustained
improvement within the agreed time period i.e. implementation of the next stage of the formal
procedure. The employee should also be informed that records will be kept during the monitoring
period, and any other relevant information retained.

If at the end of the review period, the required improvement has been made, the employee should
be informed of this and the need for sustained improvement clearly stated.

This will be confirmed in writing with a copy to be kept on the employees’ personal file for a period
of nine months.

If some improvement has been made but the standard(s) have not yet been met, revised actions and
a further review date should be agreed (no longer than three months). The employee should be
reminded of the potential consequences of failure to achieve a significant and sustained
improvement.

STAGE TWO – final written warning

If following the end of the review period agreed in Stage One, there has been no discernible
improvement in performance (and there is clear evidence of this) a meeting must be convened at
Stage Two.
At this meeting, management will present evidence of continued underperformance and the
employee will be given the opportunity to respond accordingly.
If it is concluded that there has been no discernible improvement then the action plan will be
reviewed and amended accordingly with a new review date (no longer than three months).

This will be confirmed in writing with a copy to be kept on the employees’ personal file for a period
of twelve months.

The employee must be informed that any further failure to maintain expected levels of performance
could lead to dismissal on the grounds of capability.

V1 June 22 Capability Policy & Procedure

CAPABILITY HEARING
If the employee’s performance still fails to improve, a capability hearing will be arranged to consider
dismissal on the grounds of capability.

The purpose of the capability hearing is to provide an opportunity for the member of
staff/representative to present their case in the presence of manager/supervisor hearing the case.
Usually different people will be designated to hear the case, though this is not an absolute
requirement.

In most instances the manager/supervisor hearing the case will involve a member of the HR
Department to support them in the setting up of the hearing, to accompany them at the capability
hearing. In order to provide appropriate advice, the HR Department representative may on occasion
ask questions of the member of staff or witnesses as necessary.

The manager/supervisor hearing the case has an obligation to consider the facts of the case fully
before reaching a decision on what action, if any, is taken. The employee will be informed of and
given the opportunity to challenge any additional information taken into account in decision making.
In some circumstances an adjournment may be required at this stage.

All capability hearings, including appeals, will be held at a reasonable time and place. If an employee
is invited to attend a capability hearing, they must take all reasonable steps to attend. Should an
employee fail to attend a capability hearing or appeals meeting, then another meeting will be
arranged, a third such meeting will result in a decision being made in the employee's absence.

The decision to dismiss must only be taken by the appropriate designated manager/supervisor.

As an alternative to dismissal from current post, alternative work may be considered (see Section
relation to ‘Alternative Work’).

2.4 Alternative Work

It may be possible to offer alternative work at the level of the individual’s performance.
This will initially be on a three-month basis, reviewed on a monthly basis and involve, if appropriate,
retraining. The terms and conditions will be appropriate to the band of the alternative post i.e. pay
protection will not apply.

It must also be made clear of the potential consequences should the individual fail to perform in the
alternative role i.e. reconvene dismissal hearing, with termination of employment being the
outcome.

2.5 Appeal Against Dismissal

A right of appeal exists against dismissal on the grounds of capability.

An appeal must be lodged in writing to the HR department within 7 working days of the decision on
the hearing. The grounds for the appeal must be stated in the letter.

The appeal hearing will be held as soon as practicable by the next level of management (not
previously involved in the process) after receipt of the letter and may take place after the capability
decision has taken effect.

V1 June 22 Capability Policy & Procedure

At the appeal hearing, the details of the dismissal will be reviewed and the decision of the manager
hearing the appeal will be communicated to an employee in writing by the HR Department. The
decision is final and there will be no further level of appeal.

2.6 Monitoring Information

The Policy will be monitored on a regular basis to ensure the effectiveness of the Policy and to
ensure that there is no adverse impact on any staff groups.

2.7 Status of Policy & Procedure

This policy does not give contractual rights to individual employees. The Company reserve the right
to alter any of its terms at any time although the Company will notify employees of any changes.

V1 June 22 Capability Policy & Procedure