Ask the Expert: Taking Action Short of Dismissal

When an employee issue arises, it can be tempting to jump straight to the worst-case scenario. However, in most situations, dismissal shouldn’t be your first move. There are a number of practical, fair, and effective steps employers can take to address concerns without ending the employment relationship.

This month I’ve asked Julie to tackle a topic that comes up time and time again with our clients — what options are there  when things aren’t quite right with an employee but you are not at the point of dismissal. It’s an area where I often see employers either avoiding the issue altogether or moving far too quickly, therefore getting the balance right is key.  The big question here is:  how to take action short of dismissal and manage situations with confidence?

What does “action short of dismissal” actually mean?

Julie  Put simply, it refers to any steps you take to address concerns about an employee’s behaviour or performance without terminating their employment. It’s about intervening early, setting clear expectations and giving the individual the opportunity to improve.

In practice this could range from having an informal conversation to issuing a formal warning depending on the seriousness of the situation. The focus should try to be on correcting the issue rather than ending the employment relationship.

When should I consider action short of dismissal instead of dismissing?

Julie Unless you are dealing with something that could amount to gross misconduct, dismissal should generally be seen as a last resort.

If the issue relates to performance, conduct that is not particularly serious or a one-off lapse in judgement, then it is usually more appropriate to take a cautious approach, allow the employee to explain and give them the opportunity to improve. Acting too quickly can not only be unfair but can also expose your business to unnecessary risk.

What types of situations does this usually apply to?

Julie We see this most often in cases involving performance concerns, such as an employee struggling to meet expectations, as well as issues like poor timekeeping, minor breaches of company policies or concerns around attitude, behaviour and communication.

These are all situations where, with the right intervention and support, improvement is entirely possible. That is why taking action short of dismissal is not just a legal safeguard, but also a practical management tool.

Do I always need to follow a formal process?

Julie Not at all. In fact, one of the most common mistakes employers make is moving too quickly into a formal disciplinary process.

Often an informal conversation is enough to resolve the issue. Taking the time to explain the concern, clarify expectations, and give the employee the chance to respond can prevent matters from escalating. Of course if the issue continues or is more serious in nature, then a formal process may be required but it should not always be your first step.

That’s interesting tell me more, what is the difference between informal and formal action?

Julie Informal action is typically a conversation. It may involve some coaching, guidance or simply making the employee aware of the issue and what needs to change. It does not result in a formal warning and is often used as an early intervention.

Formal action, on the other hand, could involve following your disciplinary procedure. This may include an investigation, a formal meeting and ultimately the issuing of a formal warning. Similarly it may involve following your sickness absence policy or performance management policy.  The key difference is that formal action places the issue on record and has clear consequences if there is no improvement.

What types of warnings can I give?

Julie Most disciplinary procedures will include a staged approach, usually starting with a first written warning and progressing to a final written warning if the issue persists or is more serious.

Each warning should clearly set out the nature of the concern, what improvement is required, the timeframe in which that improvement is expected and what could happen if the situation does not improve. Being clear and specific is essential as it removes any ambiguity for the employee.

How long do warnings stay on file?

Julie This will usually be outlined in your disciplinary policy, but as a general guide, a first written warning might remain live for around six to twelve months, while a final written warning may remain in place for twelve months, depending on the circumstances.

Can I ever skip straight to a final written warning?

Julie Yes, there are situations where this may be appropriate. If the issue is more serious but does not amount to gross misconduct, it could be reasonable to move straight to a final written warning.

The important thing is that your decision is proportionate and that you can justify why you have taken that step. For example, where there has been a significant breach of health and safety or a serious lapse in judgement, a more robust response may be necessary.

What support should I provide alongside warnings?

Julie This is an area that is often overlooked. If you expect an employee to improve, you need to give them a fair opportunity to do so.

That might involve providing additional training, setting clear and achievable objectives, having regular check-ins or making adjustments to workload or responsibilities. A warning on its own is unlikely to drive improvement unless it is supported by practical steps to help the employee succeed.

What if there are underlying issues such as health or personal problems?

Julie This is where it is important to take a step back and look at the bigger picture. If there are underlying health concerns, particularly those that could amount to a disability, or personal circumstances that are affecting the employee’s performance, then a purely disciplinary approach may not be appropriate.

In these cases, you may need to consider a more supportive route such as exploring reasonable adjustments or seeking professional medical advice. Failing to do so can increase the risk of claims and, more importantly, may not address the root cause of the issue.

How should I deal with repeated issues?

Julie If an issue continues despite earlier intervention, then escalation is usually the right approach. This is where your disciplinary process provides a clear framework, allowing you to move from informal action through to formal warnings and, if necessary, towards dismissal.

The key is consistency. Employees should understand that if improvement is not sustained, there will be further consequences.

What if the employee improves and then slips back again?

Julie This is something many employers encounter. If the warning is still active, you can move more quickly to the next stage in the process. If it has expired, you may need to restart the process, but you can still consider the previous history as part of the overall context.

Again, consistency and fairness are crucial. Treating similar situations in the same way helps protect your business and maintain trust within your team.

How important is documentation?

Julie Documentation is absolutely key. Even where you are dealing with matters informally, it is good practice to keep a note of what was discussed, what expectations were set and any agreed actions.

If the situation escalates, those records can provide valuable evidence that you acted reasonably and gave the employee a fair opportunity to improve.

What are the risks of getting this wrong?

Julie Acting too quickly or failing to follow a fair process can expose your business to claims particularly in relation to unfair dismissal.

There is also the wider impact to consider. Inconsistent or heavy-handed approaches can affect morale, damage working relationships and create a culture of uncertainty. Taking a measured and proportionate approach not only reduces risk but also supports a more positive working environment.

That’s very interesting.  What is your top tip for employers?

Julie Address issues early and don’t overreact. Many issues can be resolved with a simple conversation if they are dealt with promptly and constructively.

By setting clear expectations, offering support and following a fair process where needed, you give employees the best chance to improve while also protecting your business. In most case that balanced approach will lead to far better outcomes than rushing to dismissal.

As always, if you’re facing a situation like this in your own business, my advice is simple, don’t sit on it but don’t rush it either. These situations are rarely black and white and getting the approach right from the outset can make all the difference.

If you are unsure, just pick up the phone to us. A quick conversation at the right time can save a lot of time, stress and potential risk further down the line.