Performance appraisals should drive growth, motivation and development – not open your business to legal claims. With the increase in hybrid working, many employers are finding their traditional appraisal processes increasingly vulnerable under legal scrutiny.
What can go wrong?
From a legal perspective, appraisals are more than just feedback – they’re evidence. If a dismissal or discrimination claim is brought, tribunals will dig into how performance was assessed, what standards were applied, and whether bias played a part.
- Subjective ratings
Comments like “poor attitude”, “not a team player” with no clear benchmark can leave employers vulnerable to discrimination claims. If these ratings are then used to scaffold a formal performance management process, there is a risk of undermining the fairness of the PIP process. - Lack of documentation
Poor documentation makes it significantly more difficult for employers to act on performance concerns. There’s no point grumbling about an employee’s performance behind the scenes if those ‘grumbles’ are not brought out into the open, documented, and tackled. - Unconscious bias
Personal views, even unconscious ones, can skew the outcome. Whether it’s a leaning towards those who ‘fit in’ more easily or an issue with the hybrid team functionally, where proximity bias can favour those more physically present.
How do you protect your business?
- Set clear, measurable criteria – no vague language.
- Train managers to recognise bias and assess remote and office-based staff equally. Consider ‘peer review’ of appraisal documentation to spot potential issues quickly.
- Keep detailed, contemporaneous notes – assume they could be read aloud in a tribunal.
- Calibrate across teams to ensure consistent scoring.
- Let employees respond to their reviews and document the outcome.
- Follow through on development plans.
Top tip for HR
Treat appraisals like formal evidence – because that’s exactly what they’ll become if challenged.
Further reading
- Victimisation and ‘Protected Acts: Why context matters in discrimination claims – Hunter Law
- Discrimination: your rights: Types of discrimination (‘protected characteristics’) – GOV.UK
- BBC settles discrimination claims ‘on the steps’ – Hunter Law
- HMRC accused of harassment (for birthday wishes!) – Hunter Law
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The team at Hunter Law is here for you. We can handle your HR issues, finesse your policies, and keep you up-to-date on evolving legislation. Please get in touch with our legal team, we’d love to help.
