Hiring and probation

Probation not passed: termination of employment letter

Ends the employment at the end of probation with notice, stating the reason and any right of appeal.

The review has happened, the standard set out at the start (or at the extension) has not been met, and you have decided not to continue. Give the notice the contract requires, put the reason in writing, and offer an appeal even where you are not strictly required to.

Before it goes

  • A meeting has taken place at which the concerns were put and the employee could respond. Ideally they were told the meeting could end in dismissal and could be accompanied.
  • You have checked service length, and whether anything about the reason could relate to a protected characteristic, pregnancy, whistleblowing or asserting a statutory right. If it could, take advice before writing.
  • You know the notice due (contractual or statutory, whichever is longer) and whether you will pay in lieu.

The letter

[COMPANY NAME] [COMPANY ADDRESS] [DATE] [EMPLOYEE NAME] [EMPLOYEE ADDRESS] Dear [EMPLOYEE FIRST NAME], Termination of employment at the end of your probationary period I refer to our meeting on [MEETING DATE], at which we reviewed your progress during your probationary period[, as extended on [EXTENSION DATE]]. You were told in advance that the meeting could result in the end of your employment and that you could be accompanied. At the meeting we discussed: 1. [AREA AND FACT, e.g. Accuracy of timesheets: despite the support put in place on [DATE], four of the last eight weekly timesheets required correction.] 2. [AREA AND FACT] I listened carefully to what you said, in particular [SUMMARY OF THEIR RESPONSE], and I have considered it. However, I have concluded that you have not met the standard required for the role of [JOB TITLE], and that your employment should not be confirmed. Your employment will therefore end on [TERMINATION DATE]. [You are required to work your notice period of [NOTICE] until that date. / You will not be required to work your notice; you will be paid [NOTICE] in lieu of notice, and your last day of employment is today, [DATE].] Your final pay will include pay up to your last day, [pay in lieu of notice,] and payment for [NUMBER] days of accrued but untaken holiday. Any [deductions agreed in your written statement, e.g. for training costs / uniform] will be [made / not made]. Your P45 will follow by post. Please return [COMPANY PROPERTY: keys, fob, phone, laptop, PPE] to [NAME] by [DATE]. You have the right to appeal against this decision. If you wish to appeal, write to [APPEAL MANAGER NAME] at [ADDRESS / EMAIL] within five working days of receiving this letter, setting out your grounds. I am sorry it has ended this way and wish you well for the future. Yours sincerely, [MANAGER NAME] [JOB TITLE] [COMPANY NAME]

Filling it in

Notice
One week statutory after a month's service, or the contract's probationary notice if longer. Pay in lieu only if the contract allows it or the employee agrees; otherwise it is a breach, even if a small one.
Their response
Summarise it fairly. A letter that shows you heard them is a letter that stands up.
Holiday
Accrued statutory holiday must be paid on termination whatever the reason. Work-Lynx's leave calculator gives you the figure.

What the law says

  • Employment Rights Act 1996 s.86: statutory minimum notice is one week after one month's service.
  • Employment Rights Act 1996 s.92: an employee with the qualifying service is entitled to written reasons on request; giving them anyway costs nothing.
  • Equality Act 2010 and the automatically unfair reasons in ERA 1996 Part X: these apply from day one regardless of service.
  • Acas Code of Practice on disciplinary and grievance procedures: not strictly engaged by a probation failure on capability, but following its shape (meeting, right to be accompanied, decision in writing, appeal) is the safest course.
Guidance, not legal advice. Employment law moves; check the current position before relying on any of it, and take advice on anything that could end someone's employment.

What turns this letter into a claim

  • Do not dismiss anyone in probation without checking the day-one protections. Short service is not a shield against discrimination, whistleblowing or pregnancy claims.
  • Do not write a reason that differs from the one you gave in the meeting.
  • Do not skip the appeal. It costs a meeting and closes the loop.

Questions people ask

Do I have to follow a full disciplinary process for someone still in probation?

At the time of writing, ordinary unfair dismissal needs two years' service, so the Acas Code is not a legal must for most probation failures. It is still the sensible shape: tell them the meeting could end their job, let them bring someone, decide in writing, offer an appeal. The Employment Rights Act 2025 is reducing the qualifying period, so check the current position. Guidance, not legal advice.

Can I pay them off instead of working notice?

If the contract has a pay in lieu of notice clause, yes. If it does not, you can agree it with them, or pay it and accept a technical breach that most people never pursue. Either way, the money is the same: full pay for the notice period.

What about their holiday?

Statutory holiday accrued and not taken is paid on termination, always. Contractual holiday above the statutory minimum depends on what the written statement says.

The letter, with the names already in

Employ AI drafts letters like this one from the employee's record, so the dates, service and pay are already right, and the disciplinary module writes the invitation and outcome letters from the case itself. All 44 letter families, 49 UK policies, GPS clock-in, rotas, leave and timesheets: £2.50 a month plus £1 per employee. 14 days free, no card.

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