This isn’t just in the UK even though this news article is from the Scotsman.  I’ve seen this personally in action: 
NOTE:  this is a lengthy article so I’ve only taken clips to paste here)
http://business.scotsman.com/index.cfm?id=1513182006

“IT IS described as the best solution for everyone concerned by its advocates - and a sneaky way to get rid of staff by others.

“Managing out” describes the process of weeding out workers who are either not up to the job or are the wrong person for the post. Known as “counselling out” in the US, the system provides regular, candid feedback to an employee while simultaneously setting targets that are generally unachievable in hopes that he or she will quit in frustration before being sacked.

Is this merely a useful way for bosses to ease an under-desired person out of a job without firing them on the spot, or a cunning method of undermining someone’s position?”

———————————One expert, who did not wish to be named for the story, says: “If this is done correctly your ‘problem employee’ will find a job and quit before you take action.”

———————————”....Confederation of British Industry (CBI), says this process is not knowingly used in the UK, and that if a company did exercise such tactics the employee would have grounds for legal action. To be sure, companies would be reluctant to acknowledge they proscribed to this practice.

———————————”........with bosses significantly increasing the workload on a staff member