Managing Employee Performance Fairly: What UK Employers Must Get Right

Managing employee performance is a core responsibility for UK employers. When done correctly, it improves productivity, supports development, and reduces conflict. When handled poorly, it can expose businesses to grievances, discrimination claims, and unfair dismissal risks.

Performance Management Must Be Fair and Evidence-Based

Employers are expected to address performance concerns objectively, consistently, and lawfully. This includes:

• Setting clear expectations and measurable objectives

• Providing regular feedback and guidance

• Allowing reasonable time and support for improvement

• Keeping accurate records of discussions and decisions

Failure to follow a fair process increases legal risk — particularly where performance concerns overlap with health conditions, disability, pregnancy, or other protected characteristics under the Equality Act 2010.

Comment from Matthew Chilcott, Owner – Consensus HR:
“Performance issues are one of the most common areas where employers face risk — often not because action was taken, but because it was handled inconsistently or without proper process. Clear expectations, early conversations, and fair documentation make a significant difference. When performance management is approached correctly, it supports both the employee and the business while reducing the risk of grievances or legal challenge.”

Informal vs Formal Performance Management

Many performance concerns can be resolved through informal performance conversations, which allow issues to be addressed early and constructively.

Where concerns persist, employers may need to follow a formal capability process, ensuring that:

• The employee understands the concerns

• They have the opportunity to respond

• Appropriate support and time to improve is provided

• Decisions are proportionate and evidence-based

The Importance of Manager Training

Line managers often lead performance discussions but may not have received formal training. Providing managers with guidance on how to conduct reviews, hold difficult conversations, and document outcomes correctly significantly reduces risk and improves consistency.

Conclusion

Handled properly, performance management supports accountability, fairness, and development. A structured and lawful approach protects the business while helping employees understand expectations and improve performance.