First, check whether the plan itself was fair
Before deciding an outcome, look honestly at the process: were the objectives specific and achievable, was proportionate support actually given, were checkpoints held on time with written notes, and did the employee get a genuine chance to respond? If the plan itself was weak — vague objectives, no support, checkpoints skipped — moving straight to dismissal is high-risk, because the failure may be the process's, not the employee's.
Partial progress: extension is often the right call
If some objectives were met and others weren't, or there's a clear, specific reason progress was slower than expected (a change in workload, a system outage, a documented personal circumstance), a short, explicitly time-bound extension with revised or narrowed objectives is usually more defensible — and more likely to actually solve the problem — than jumping to dismissal.
No meaningful progress: formal capability process
Where objectives were clear, support was given, and there is genuinely no meaningful improvement, the next step is usually a formal capability process (distinct from a disciplinary process, because capability is about ability rather than conduct). This typically means a formal capability hearing, with the right to be accompanied, a clear statement of the concern and the evidence, and a chance for the employee to respond before any decision is made.
Dismissal after a failed PIP
Dismissal for poor performance is potentially fair in UK law under the 'capability' ground (Employment Rights Act 1996), but only if the process leading to it was reasonable — a proper PIP, genuine support, adequate warning of the consequences, and a fair hearing. Employees with two or more years' continuous service can bring an unfair dismissal claim if the process was flawed, even where performance genuinely was poor. See our guide on dismissal after a PIP for more detail.
Alternatives worth considering
Redeployment to a different role better suited to the person's strengths, a demotion with agreement, or in some cases a settlement agreement, can all resolve a failed PIP without a contested dismissal. These are worth raising, particularly for longer-serving employees where the risk and cost of a contested dismissal is higher.
Document the decision and the reasoning
Whatever the outcome, write down what was reviewed, what the decision is, and why — referencing the specific objectives and evidence from the plan, not general impressions. This record is what an employer relies on if the decision is later challenged internally or at tribunal.
Frequently asked questions
Can an employer skip straight to dismissal if a PIP fails?
Usually not safely. ACAS guidance and tribunal case law expect a fair process even after a failed PIP — typically a capability hearing with a right of appeal — before dismissal, unless the contract or circumstances say otherwise.
Does the employee have a right to appeal the outcome?
Where the outcome is dismissal or a formal warning, yes — ACAS's Code of Practice on disciplinary and grievance procedures expects a right of appeal, and failing to offer one can itself make a dismissal unfair.
What if the employee says the targets were unreasonable?
Take the objection seriously and review it against the evidence: were the targets in line with what's expected of others in similar roles, and was there anything (workload, resources, unclear instructions) that made them genuinely harder to hit? If the objection has merit, that should influence the outcome.
This is general guidance on UK workplace practice, not legal advice. If a case is contested, high-risk, or involves discrimination, ill-health or long service, take advice from a solicitor or ACAS before acting.
Next step
GoMediation.ai records every checkpoint and lets a manager close a plan as met, not met, extended or escalated to mediation — with the evidence attached.
See the PIP outcome workflow