What is Poor Performance at Work?

Your employer may raise concerns about your performance if it believes that your work is not meeting the standard reasonably expected of you.

Performance concerns might relate to:

• Missing sales targets
• Failing to meet business objectives
• Making repeated mistakes
• Poor quality of work
• Missing deadlines
• Failing to complete required tasks
• Not meeting agreed standards

You may agree that improvement is needed, or you may believe that the allegations are unfair or unsupported.

For example, you may consider that:

• The targets are unrealistic
• You have not received sufficient training
• You have not been given appropriate support
• Your workload is unreasonable
• The allegations are inconsistent with previous good appraisals
• Other employees are being treated differently
• The process is connected with bullying
• The employer is trying to avoid a redundancy process

Performance concerns should be dealt with fairly and should normally focus on helping an employee improve rather than simply creating a route to dismissal.

For further guidance, see Bullying at Work and Redundancy.

What Performance Process Should an Employer Follow?

Capability, including poor performance, can potentially provide a fair reason for dismissal.

However, an employer should normally follow a fair procedure before deciding to dismiss an employee because of poor performance.

The Acas Code of Practice on disciplinary and grievance procedures applies to poor performance where it is dealt with as a disciplinary matter.

An employer may instead have a separate capability or performance management procedure. Where it does, the basic principles of fairness in the Acas Code should still be followed.

An Employment Tribunal can consider the procedure followed by the employer when deciding whether a dismissal was fair.

At an early stage, your employer should normally:

• Explain its performance concerns
• Give you an opportunity to respond
• Make clear what standard is expected
• Identify the improvement required
• Consider appropriate training
• Provide reasonable support
• Allow a reasonable opportunity to improve

Performance problems should normally be addressed informally first where appropriate.

For example, your manager may discuss concerns during:

• A one-to-one meeting
• An appraisal
• An informal performance meeting

If the problem cannot be resolved informally, the employer may move to a more formal capability or disciplinary process.

For further guidance, see Dismissal and Disciplinary Process.

How Much Time Should You Be Given to Improve?

There is no single statutory period that applies to every employee or every type of performance problem.

The period should be reasonable in the circumstances.

Relevant factors can include:

• Nature of your role
• Seriousness of the performance concerns
• Extent of the alleged shortfall
• Time realistically needed to demonstrate improvement
• Training required
• Support being provided
• Frequency with which your performance can reasonably be measured

For example, an employee working on monthly sales targets may need a different review period from someone whose work can be assessed every day.

A very short improvement period may be unfair if it gives you no realistic opportunity to demonstrate the required change.

What Happens if the Employer Starts a Formal Process?

If the employer decides that formal action is required, you should normally be informed in writing.

The written notification should provide enough information for you to understand:

• The performance concerns
• The standards expected
• The evidence being relied upon
• The possible consequences

You should be given reasonable time to prepare before any formal hearing.

At a qualifying formal disciplinary hearing, you should also be informed of your statutory right to be accompanied by:

• A Work colleague
• A Trade union representative
• A Trade union official

You should have a proper opportunity to explain your position and respond to the employer's concerns.

Can You Be Given a Warning for Poor Performance?

Yes.

Where an employee is performing unsatisfactorily, a formal procedure may result in a written warning.

The warning should normally explain:

• What performance needs to improve
• What standard needs to be achieved
• The timescale for improvement
• What support will be provided
• How performance will be reviewed
• How long the warning will remain active
• What may happen if sufficient improvement is not achieved

If performance does not improve within the specified period, the employer may consider a final written warning.

Dismissal should normally be a last resort after the employee has been given a reasonable opportunity and appropriate support to improve.

In more serious circumstances, it may sometimes be reasonable to move directly to a final written warning, but the employer should still act fairly.

What is a Performance Improvement Plan?

A Performance Improvement Plan, commonly known as a PIP, is a structured plan used by employers where an employee's performance is said to fall below the required standard.

A PIP is usually documented in writing and is intended to identify:

• What the performance problem is
• What improvement is required
• How improvement will be measured
• What support will be provided
• How long the improvement period will last
• When progress will be reviewed
• What could happen if sufficient improvement is not achieved

A PIP can form part of an informal performance process or a more formal capability procedure.

The fact that you have been placed on a PIP does not itself mean that dismissal has already been justified.

What Should a Fair PIP Contain?

A properly structured PIP should normally:

• Identify the alleged performance shortcomings clearly
• Use specific and measurable objectives where appropriate
• Explain the required standard
• Set a reasonable improvement period
• Explain how performance will be monitored
• Set review dates
• Identify necessary training
• Identify appropriate support
• Explain the possible consequences of failing to improve

The objectives should be genuinely achievable.

A PIP should not be designed so that failure is effectively inevitable.

Your employer should also discuss the plan with you and make sure you understand what is expected.

Should You Sign a PIP if You Disagree With It?

Signing a PIP does not necessarily mean that you legally agree with everything written in it.

Equally, refusing to sign it does not automatically prevent the employer from continuing with the process.

The important question is what your signature is intended to confirm.

For example, an employer may ask you to sign simply to confirm that:

• You received the document
• The document was discussed with you

If you disagree with the allegations, targets or procedure, it may be sensible to make that position clear in writing.

You could state that:

• You acknowledge receipt of the PIP
• You do not accept particular allegations
• You dispute particular objectives or timescales
• You reserve your position

You should avoid signing wording that expressly states that you agree with matters you genuinely dispute without first considering the implications.

What if You Are Not Asked to Sign the PIP?

You should still raise important concerns if you disagree with the process.

Remaining silent does not necessarily amount to legal acceptance, but failing to challenge obvious problems can make your position more difficult later.

If you believe the PIP is unfair, you may wish to respond in writing explaining:

• Which allegations you dispute
• Why you dispute them
• Which targets are unreasonable
• What evidence supports your position
• What training or support you require
• What changes you believe should be made

Where the problem cannot be resolved, a formal Grievance at Work may be appropriate.

What Can Suggest That a PIP May Be Unfair?

The existence of a PIP does not itself mean that the employer is acting unfairly.

However, certain circumstances may justify closer examination.

A Sudden Change After a History of Good Performance

A PIP may be surprising where you have:

• Long service
• Consistently positive appraisals
• Recently received a good performance review
• Regularly achieved targets
• Received performance-related bonuses

A sudden allegation of serious underperformance does not automatically prove unfair treatment, but the employer should be able to explain what has changed.

Previous performance records can be important evidence.

Problems With Your Line Manager

The relationship between you and your manager may also be relevant.

For example, concerns may arise where performance allegations begin shortly after:

• A disagreement with your manager
• A complaint about your manager
• A change in management
• A grievance
• Another workplace dispute

A difficult relationship does not automatically invalidate a performance process, but performance decisions should be based on objective evidence rather than personal dislike or conflict.

Unrealistic Targets or Timescales

The terms of the PIP itself can be important.

Concerns may arise where:

• Targets are impossible to achieve
• Standards are substantially higher than those applied to colleagues
• The review period is unreasonably short
• Necessary resources are unavailable
• Required training is refused
• Objectives repeatedly change
• Success cannot be objectively measured

A genuine PIP should provide a realistic opportunity to improve.

Different Treatment From Comparable Employees

It may also be relevant if colleagues performing substantially similar work at a similar level are not subjected to performance action.

Different treatment may be justified because individual circumstances differ.

However, unexplained inconsistency can become important, particularly where you believe the real reason for the treatment involves:

• Discrimination
• Victimisation
• Whistleblowing
• Another unlawful reason

Performance Action During a Redundancy Exercise

Concerns can also arise where an unexpected performance process starts at around the same time as a restructuring or redundancy exercise.

For example, you may believe your employer is attempting to use capability proceedings as a cheaper or easier way of removing you.

The employer should be able to demonstrate that the performance concerns are genuine and supported by evidence.

Can Your Employer Use Performance Allegations Instead of Redundancy?

Poor performance and redundancy are legally different concepts.

Capability concerns whether an employee can perform their role to the required standard.

Redundancy generally concerns the employer's reduced requirement for employees to carry out work of a particular kind, workplace closure or business closure.

An employer should not artificially label a genuine redundancy situation as a performance problem simply to avoid:

• Redundancy consultation
• Redundancy selection procedures
• Statutory redundancy pay

However, performance issues can genuinely exist at the same time as a redundancy exercise.

For example, an employer may sometimes use relevant and objectively assessed performance criteria as part of a fair redundancy selection matrix.

The circumstances therefore need to be considered carefully.

For further guidance, see Redundancy.

What if a Health Condition is Affecting Your Performance?

Where poor performance may be connected with a health condition, your employer should consider the medical position before simply treating the matter as ordinary underperformance.

If your condition amounts to a disability under the Equality Act 2010, your employer may have a duty to make reasonable adjustments.

Potential adjustments could include:

• Additional training
• Adjusted targets
• Different working hours
• Modified duties
• Additional supervision
• Specialist equipment
• More time to complete particular tasks

Your employer may also need to consider occupational health or other appropriate medical evidence.

For further guidance, see Disability Discrimination and Reasonable Adjustments.

Can Your Employer Dismiss You for Poor Performance?

Potentially.

Capability is a potentially fair reason for dismissal.

However, before dismissing for poor performance, an employer should normally be able to demonstrate that it:

• Identified genuine performance concerns
• Explained those concerns clearly
• Established reasonable standards
• Provided appropriate support
• Allowed a reasonable opportunity to improve
• Considered relevant explanations
• Followed a fair procedure
• Considered whether another outcome was appropriate

Dismissal should generally be a last resort.

As at 10 September 2026, employees normally require two years' continuous employment to bring an ordinary unfair dismissal claim, subject to important exceptions.

From 1 January 2027, the ordinary qualifying period will reduce to six months.

What Alternatives Are There to Continuing With a PIP?

If you believe the process is unfair, you may first try to resolve your concerns informally with:

• Your manager
• Human Resources
• Another appropriate manager

If this does not resolve the problem, you may consider raising a formal grievance.

A grievance can formally identify concerns such as:

• Unfounded allegations
• Unreasonable targets
• Insufficient support
• Discrimination
• Bullying
• Procedural unfairness
• Inconsistent treatment

Raising a grievance does not automatically require the employer to suspend the PIP.

Where the grievance and performance process overlap, the employer may:

• Pause the PIP
• Deal with the grievance first
• Run both processes at the same time
• Deal with related issues together

The approach should be fair and reasonable in the circumstances.

Can Being Put on a PIP Amount to Constructive Dismissal?

Not simply because you disagree with it.

An employer is entitled to manage genuine performance concerns.

However, in exceptional circumstances, the way a performance process is used could potentially contribute to a serious breach of the employment contract.

For example, issues might arise where an employer deliberately:

• Fabricates allegations
• Sets impossible targets to force you out
• Conducts the process in bad faith
• Subjects you to serious bullying through the process
• Discriminates against you

Whether the employer's overall conduct amounts to a fundamental breach capable of supporting a constructive dismissal claim will depend on the facts.

Resignation is a significant step and should not be treated as the automatic response to an unfair PIP.

For further guidance, see Constructive Dismissal.

Can You Negotiate an Exit Instead of Completing the PIP?

Potentially.

Where the employment relationship has seriously deteriorated, either party may consider discussing an agreed exit under a Settlement Agreement.

This can sometimes avoid a lengthy performance process.

Possible settlement terms might include:

• Termination date
• Notice pay
• Outstanding salary
• Holiday pay
• Compensation
• Bonus or commission
• Agreed reference
• Confidentiality
• Non-derogatory wording
• Restrictive covenants
• Contribution towards legal fees

A settlement agreement is voluntary.

Neither party can normally force the other to agree.

For a settlement agreement to validly waive statutory employment claims, the employee must receive advice from an appropriately qualified independent adviser and the other statutory requirements must be satisfied.

Are Settlement Negotiations Always "Without Prejudice"?

No.

This is an important distinction.

The phrase "without prejudice" does not automatically make every employment discussion confidential or inadmissible.

The traditional without prejudice rule normally requires:

• An existing dispute
• A genuine attempt to settle that dispute

Where those conditions are satisfied, settlement communications will generally be protected, subject to limited exceptions such as unambiguous impropriety.

If there is no existing dispute, simply writing "without prejudice" on an email does not necessarily create that protection.

What is a Protected Conversation?

Section 111A of the Employment Rights Act 1996 allows employers and employees to have certain confidential pre-termination negotiations even where there is no existing employment dispute.

These are often referred to as protected conversations.

For example, an employer may offer an employee a financial package to leave rather than continue with a lengthy capability process.

However, section 111A protection is limited.

It principally prevents qualifying negotiations from being used as evidence in an ordinary unfair dismissal claim.

It does not provide the same protection for claims such as:

• Discrimination
• Harassment
• Victimisation
• Whistleblowing
• Wrongful dismissal
• Breach of contract
• Unlawful deduction from wages

The legal position can also change where there has been improper behaviour during the negotiations.

How Long Should You Be Given to Consider a Settlement Offer?

The Acas Code on settlement agreements states that parties should be given a reasonable period to consider formal written settlement terms and obtain independent advice.

As a general rule, Acas recommends allowing at least 10 calendar days, unless the parties agree otherwise.

This is a recommended minimum rather than an automatic entitlement applying identically in every situation.

More time may be appropriate depending on the circumstances.

You do not have to accept a settlement offer simply because your employer has made one.

What Can Amount to Improper Behaviour During a Protected Conversation?

The confidentiality protection under section 111A can be affected where improper behaviour occurs.

Examples can include:

• Harassment
• Bullying
• Intimidation
• Physical assault
• Discrimination
• Undue pressure

For example, it may be improper for an employer to give an employee an unreasonably short period to consider a settlement proposal combined with a threat of dismissal if it is not immediately accepted.

Whether particular behaviour is improper will ultimately depend on the facts.

What Should You Do if You Believe Your PIP is Unfair?

Useful steps can include:

• Ask for the concerns in writing
• Review previous appraisals
• Keep copies of relevant performance records
• Compare targets with those previously applied
• Ask how objectives will be measured
• Identify training you require
• Request reasonable support
• Respond to inaccurate allegations
• Keep records of review meetings
• Raise concerns promptly
• Consider a grievance where appropriate
• Obtain advice before resigning or signing a settlement agreement

You should also continue making reasonable efforts to meet legitimate performance requirements while challenging any parts of the process that you believe are unfair.

A Performance Improvement Plan can be a genuine attempt to improve performance, but where dismissal is a possible outcome, the objectives, support, timescale and procedure should all be fair and reasonable.