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ARTICLE · 27 MAY 2014

Managing employee underperformance

It requires preparation and understanding and the legal consequences of skipping those steps can be severe.

AustraliaEmployment and HR

Managing underperformance is not as simple as on TV. It requires preparation and understanding and the legal consequences of skipping those steps can be severe. Yelling "You're fired!" makes for a good dramatic scene. But in the real world, if those words are uttered, an employer can quickly find themselves stuck in a court-room saga, cast as the bad guy.

Take the case of fashion designer Danae Moumtzis. She got the surprise of her working life in August 2012, receiving a letter from her employer stating she was unfit to keep her job and telling her she was fired.

But her employer, Dolina Fashion Group, had failed to follow proper process, an omission that ended up being very costly when the courts finally ruled. "The evidence does not establish that Ms Moumtzis had been warned about the unsatisfactory performance," noted the decision by Fair Work Commission Vice President Watson, made in 2013. "I find that the dismissal was harsh, unjust and unreasonable."

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