When can you dismiss someone for poor performance?

Insight from an HR consultant in Milton Keynes on when dismissal for poor performance may be fair and what must happen first.

It is common to think, this person just is not doing the job, so surely I can let them go. Many business owners assume poor performance automatically justifies dismissal. This is where problems often start.

Acting too quickly, skipping conversations, or failing to keep records is one of the most common ways employers create risk for themselves. Poor performance can be obvious and frustrating, but legally it is not simple. If you want support to follow the right process, HR consultancy services in Milton Keynes can help you get this right.

Dismissal for poor performance can be fair in some cases, but only when it is handled properly. This guide explains what needs to happen before dismissal is even considered, and why a fair, documented process matters.

Pause before deciding

Poor performance affects productivity, team morale, and your time as a business owner. That pressure makes it tempting to act fast.

Before you do, remember this: fairness and process are what make a dismissal defensible. A quick decision without investigation, support, or records is exactly what will be examined if the dismissal is challenged later.

Diagnose the problem first

Before talking about dismissal, stop and ask some direct questions:

• is the issue about skills, workload, or motivation
• has the employee had proper training
• are expectations clear and realistic

A short, honest check often reveals fixable issues, such as missing training, unclear priorities, or an unmanageable workload. Fixing these early can save time, money, and stress.

Have a factual conversation

Start informally. In many cases, a short, focused conversation is enough.

• explain what is not working and the impact on the business
• be clear about what needs to change and by when
• use specific examples and avoid vague criticism

Keep the discussion factual and calm. Sometimes clarity alone is enough to get performance back on track. If not, move to a more structured approach.

Use a performance improvement plan

If informal steps do not work, put a documented improvement plan in place. Key elements include:

• clear, measurable objectives that define what acceptable performance looks like
• agreement on what support will be provided, such as training, mentoring, or workload changes
• a reasonable timescale for improvement
• scheduled follow-up meetings to review progress

The aim is genuine improvement, not forcing someone out. The plan also creates the records you will need if formal action becomes necessary.

Follow policies and the ACAS Code

If performance still does not improve, a formal capability process may be needed. This means:

• following your internal procedures
• following the principles of the ACAS Code
• inviting the employee to meetings and explaining the concerns
• allowing the employee to respond and provide explanations or evidence
• issuing warnings where appropriate before dismissal
• offering a right of appeal

If a dismissal is challenged, decision-makers will look closely at whether these steps were followed.

Keep clear records

Documentation is not paperwork for its own sake. It is your protection. Keep clear records of:

• key conversations and dates
• what was agreed and what support was offered
• any warnings issued
• evidence of improvement or continued concerns

A consistent paper trail shows you acted fairly and gave the employee a reasonable chance to improve.

Legal changes and what they mean

At the moment, employees usually need two years’ service to bring an ordinary unfair dismissal claim, with some exceptions. Under the Employment Rights Act 2025, this qualifying period will be reduced to six months, as confirmed by the government.

In practice, this means:

• expect performance dismissals to face greater scrutiny
• use probation and performance processes properly now
• keep policies and records clear and up to date

Preparing early reduces future risk.

Can you dismiss for poor performance?

Yes, but only if the basics have been done first:

• expectations were clear
• support and time to improve were given
• a fair process and your policies were followed
• records were kept throughout
• alternatives were considered

Every case is different. Before taking a final step, get advice so you are confident the decision is fair and defensible.

How an HR consultant helps

If you are unsure what has already been done, or what should happen next, an HR consultant can provide practical support, including:

• reviewing the situation and identifying gaps
• planning next steps that follow good practice and reduce risk
• sense-checking fairness and documentation
• helping update probation and performance policies

If you would like a confidential review of a performance issue or help tightening your processes, get in touch. I can support you as an outsourced HR consultant in Milton Keynes.