My understanding of the system now is that any failure is automatically awarded MAA (to be commented upon in next appraisal) with 3 months to pass. Failure at 3 months results in Formal Warning (not quite a career stopper but certainly a brick wall). Further failure will result in admin discharge.
I am appalled at the assumption that failure is regarded as evidence of a 'poor attitude' to fitness; indeed this last week I had a guy who has just finished remedial therapy just failed the test 'cos his injury started playing up. He is now useless to me (can't walk) and any chance of advancement is now in jeopardy because of draconian and ill thought out rules.
For me now the issue is that, yet again, leaders are no longer allowed to think for themselves and screw the lazy tw@ts whilst protecting the good eggs.