Performance, Sickness and Absence Management

Tackling risk before it escalates

Performance concerns and employee absence are among the most common, and most mishandled, issues in the workplace. 

Left unchecked, they create confusion, resentment, operational strain and, ultimately, legal exposure. At Watershed, we help employers manage these situations with clarity, consistency and strategic intent.

This is not about box-ticking. It is about giving managers the confidence and structure to act early, act fairly, and avoid mistakes that can damage both relationships and reputations.

Underperformance: early signals, decisive action

Very few performance issues start with a formal process. They begin with hesitation: a manager notices a dip, delays a conversation, and hopes the problem will resolve itself. Meanwhile, team dynamics suffer, standards slip, and by the time action is taken, trust has eroded.

We support clients in acting earlier and smarter. That means:

• Identifying when and how to intervene
• Structuring informal conversations with legal confidence
• Supporting performance improvement without triggering defensive responses
• Knowing when to escalate, and how to do it robustly

Our advice is legal, but also practical. We help line managers act constructively before HR procedures are invoked, and we ensure formal steps, when required, are compliant and coherent.

Absence: law, judgement and humanity

Sickness absence, whether long-term or recurring short-term, requires careful handling. Employers must balance operational needs with legal duties, particularly where disability, mental health or adjustments are in play.

Missteps can lead to discrimination claims, reputational damage and lost goodwill.

We provide:

• Step-by-step legal advice on managing complex absences
• Guidance on when (and how) to seek medical input
• Strategic support on capability processes
• Advice on reasonable adjustments and return-to-work plans

Many of our clients are grappling with prolonged absences involving stress, burnout or neurodivergence. We help them act fairly but firmly, ensuring documentation is in place, decisions are reasoned, and next steps are proportionate.

Reasonable adjustments. Clarity in complexity

The obligation to make reasonable adjustments is among the most misunderstood areas of employment law. The standard is reasonableness, but that requires a nuanced view of resources, roles and risk.

We advise employers on:

• Whether an adjustment is legally required
• How to assess and document what is reasonable
• Where to draw the line when adjustments affect performance or delivery

Our experience spans neurodiverse conditions, fluctuating mental health, and physical impairments. We help clients avoid both over-accommodation and under-compliance.

Line manager confidence

We believe line managers, not HR, should own the day-to-day management of performance and attendance. But they must be equipped to do so.

Watershed provides:

• One-to-one legal support for managers handling live cases
• Guidance on documentation, timelines and tone
• Training on handling difficult conversations and legal red flags

In some organisations, we act as the first point of contact for managers, a steadying presence that prevents drift and ensures decisions are grounded from the outset.

Not an HR issue. A business risk.

Performance and absence management are too often sidelined as HR admin. In reality, they are strategic levers and legal risk zones. One mishandled conversation can create months of fallout. One unclear decision can unravel under tribunal scrutiny.

That’s why our clients choose senior, experienced legal advisers to guide these cases, not junior staff reading from scripts. We operate with discretion, pace and a deep understanding of what matters in practice.