A performance management procedure that is fair, well-documented, and consistently applied is essential. From January 2027, the Employment Rights Act 2025 reduces the unfair dismissal qualifying period from two years to six months – meaning employees hired from approximately July 2026 onwards will gain Tribunal rights much sooner. This makes early, properly documented performance management critical.
This template covers:
- When the procedure applies – currently employees with 6+ months’ service
- The informal performance management process – investigation, discussion, and agreed actions
- The informal warning – content requirements and what must be communicated
- When to escalate to formal proceedings
- The formal capability meeting – invitation, right to be accompanied, and outcomes
- Written warning, final written warning, and dismissal – what each must contain
- Demotion as an alternative to dismissal
- The right to be accompanied
- The right of appeal
- An important note on ERA 2025: unfair dismissal qualifying period reduces to 6 months from January 2027 – this policy must be reviewed and applied consistently from that date
All fields requiring your organisation’s specific details are clearly marked for completion. Full guidance notes and relevant legislation are included.
