Can I fire someone for poor performance?

Poor performance is one of the hardest issues to deal with as a business owner.

You rely on your team to keep things running and when someone is not delivering it affects productivity, morale and your own time too.

It is natural to wonder whether you can let them go, but dismissal for poor performance is something you need to handle carefully.

Here is what you need to know.

Start by understanding what is going wrong

Before you think about ending someone’s employment, it is important to understand the problem properly.

Ask yourself:

• Is it a skills issue, a workload issue or a motivation issue?

• Have they had proper training and a fair chance to learn the role?

• Are your expectations clear and realistic?

Honest reflection can often uncover what is getting in the way.

Have a clear conversation and give them a fair chance to improve

Start with an informal conversation first.

Focus on:

• What is not working

• How it affects the business or the team

• What needs to change and by when

Keep it factual and specific. Most people want to do a good job and clarity alone can sometimes make the difference.

If things do not improve, you should move to a more structured and documented plan so that the employee understands what needs to change and has a fair chance to improve.

This might include:

• Setting clear, measurable objectives

• Agreeing what “good enough” looks like in the role

• Offering support, training or mentoring where appropriate

• Agreeing a reasonable timescale to improve

• Booking follow-up meetings to review progress

The aim is to give the person a genuine opportunity to improve, not to push them out.

Follow your policy and the ACAS Code

If things still do not improve, you may need to move into a formal performance (capability) process.

That means:

• Following your own procedures

• Following the principles in the ACAS Code of Practice

• Inviting them to a meeting, explaining the concerns and letting them respond

• Considering their explanations and any evidence

• Issuing warnings, where appropriate, rather than jumping straight to dismissal

• Allowing an appeal if a formal warning or dismissal is given

A fair, consistent process is one of the key things that would be examined if a dismissal was challenged.

Keep good records

Documentation protects both you and the employee.

Make a note of:

• Key conversations and dates

• What was agreed

• Any support or training offered

• Warnings given

• Improvements or ongoing issues

If you do eventually need to consider dismissal, a clear paper trail will be essential.

With changes coming, fairness matters more than ever

At the moment, employees usually need 2 years’ service before they can claim ordinary unfair dismissal, although there are important 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 its sensible to:

• Treat all performance dismissals as if they may be scrutinised

• Tighten up probation reviews and performance management now

• Make sure your processes are clear, fair and up to date

A good process will help you, whatever the final detail of the new law looks like.

So, can you fire someone for poor performance?

In some situations, dismissal for poor performance can be fair, but only if:

• Expectations were clear

• The person was given support and a reasonable chance to improve

• You followed a fair procedure and your own policies

• You kept proper records

• You considered alternatives before deciding to dismiss

Because every case is different and laws are changing, it is important to get advice before you make a final decision.

Get support before you act

If you are dealing with a performance issue and are unsure as to what you can safely do next, we can help.

We can:

• Review what has happened so far

• Help you to plan the next steps in line with good practice

• Sense check whether your process is fair and well documented

• Support you to update your policies for the changes coming under the Employment Rights Bill

If you would like to talk a situation through before making a big decision, get in touch and we can walk you through it step by step.