Performance management
Performance management is a process by which the employer attempts to improve an employee’s performance, often through a performance improvement plan (PIP).
Performance management is very common but can also be a very upsetting experience for an employee.
What is performance management?
Performance management is simply a process by which the employer seeks to improve an employee’s performance. It can be formal or informal.
Can I be performance-managed?
In general, yes. If you are an employee and there is a genuine performance issue, you can be performance-managed. However, the employer must comply with applicable procedural requirements outlined in policy, contract or enterprise agreement.
Is performance management compulsory?
Performance management processes are often done to comply with the procedural fairness requirements in the unfair dismissal provisions of the Fair Work Act 2009 (FW Act).
Under the FW Act, it is relevant to consider whether an employee was notified of the reason for their dismissal and warned about unsatisfactory performance in determining whether their dismissal was unfair.
What does performance management involve?
The performance management process could be quite informal, for example, a discussion with your manager. Or it could be more formal, with documentation, a performance improvement plan (PIP), and HR involved.
Performance improvement plan (PIP)
The PIP is a commonly used tool to manage performance.
A fair PIP should:
- be discussed with you first
- clearly identify aspects of your performance that are below standard and set objectively fair benchmarks to demonstrate improvement
- be in place for a reasonable amount of time to allow for improvement (for example, three months)
- provide for regular meetings to discuss the PIP
- allow for your feedback to be provided or included in the PIP.
Can I have a support person at meetings?
Yes. It is recommended to have a support person at performance meetings. They can help ensure the meeting is fair and reasonable, and witness the discussions.
The FW Act recognises the role of support persons in any discussions relating to dismissal.
What are the potential outcomes of a PIP?
- You may successfully complete the PIP
- The PIP may get extended if there is reasonable cause
- You may receive a warning for underperformance
- You may have failed to demonstrate improvement according to the employer. The employer may seek to terminate your employment.
Can I object to the performance management?
Yes. You might object to the process either because
- there is no underperformance, or
- the process has been unfair.
It is important to put any objections in writing to the employer. It might also be an opportunity to explain any mitigating circumstances that could be affecting your current performance.
How can we assist?
Most employees will have some due process or natural justice rights in relation to any discussions about performance.
The employer may be bound to follow procedures outlined in contract, policy, or enterprise agreement, so it is worthwhile seeking independent advice about whether you are being treated fairly in the performance management process.
At Henry Bournes, we can:
- Have a discussion with you about performance management processes
- Check that the employer is following the correct procedure
- Assist with any grievance relating to mishandling of the performance improvement procedure
- Assist you in responding to performance matters.
This information only relates to employees under the Fair Work Act (Cth) 2009). It is information only and is not legal advice. If you require advice or assistance in relation to an performance management process, please click ‘book now’ for a confidential consultation.
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