Workplace Relations Update - June 2009: Termination Of Employment For Poor Performance

Contents

• Termination of employment for poor performance

• AIRC confirms an employer can rely on knowledge acquired after dismissal to defend unfair dismissal claim

• Government moves on executive termination benefits

Termination of employment for poor performance

In the current economic climate, employers are monitoring the performance of their employees more closely to ensure they are contributing to the performance of the company. Two recent decisions of the Australian Industrial Relations Commission highlight the importance of appropriately managing the performance of employees before terminating their employment.

In the first case, the employee, Mr Kinnane, had been employed by GEON Australia Pty Ltd (GEON) for almost 15 years, and had performed the role of Sales Manager since 2006. Over the two full years before the termination of Mr Kinnane's employment, he had achieved 71% and 73% of his budgeted sales, and for the first half of his