ARTICLE · 18 JUNE 2017

How formal does performance management need to be?

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Formal written warnings and performance improvement plans are not essential to prove that a dismissal is fair.

AustraliaEmployment and HR

Conor Fahey (Formerly At MDC Legal))

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Does a Performance Management Process Need to Be Formal?

Formal written warnings and structured performance improvement plans are not an essential requirement to prove that a dismissal, based on poor performance, is fair.

So held the Fair Work Commission (FWC) in Etienne v FMG Personnel Services Pty Ltd [2017] FWC 1637, where an employee's dismissal was found to be not unfair, despite the employer's failure to: provide formal warnings about his performance; keep contemporaneous file notes; or formally performance manage him.

However, the case does reinforce the need for employers to provide evidence of communication of performance expectations, and an opportunity for an employee to address any identified underperformance.

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