Fair Work Act - implications for Performance Management

One of the most talked about aspects of the Fair Work Act is the unfair dismissal changes which now apply to all businesses and organisations in Victoria. Unfair dismissal claims may include the circumstance where the dismissal was for reasons of performance related (poor performance) issues.

Complying with the law

The law states that dismissals, when they occur, need to be, "not harsh, unjust or unreasonable ". It outlines guidelines for compliance that include:
  • A process for setting performance expectations and reviewing staff performance
  • A clear warning that performance is below standard and needs to be improved
  • Time to improve performance and traiing to support improvement (where appropriate)
  • Documentation of discussions, warning and agreed action steps to improve performance

Thriving instead of just complying

To some, these guidelines appear onerous. However, the irony is that this list of practices actually includes some of the key drivers of individual engagement and performance. Organisations that implement many of the guidelines can actually reap many benefits far beyond simple compliance.

People thrive in cultures where they:
  • Understand how they contribute to the broader organisational goals
  • Have clarity regardng performance expectations and individual goals
  • Receive timely, positive feedback as well as constructive feedback for improvement
  • Participate in a regular formal process to plan and review their performance and development

These are best practice performance management principles. Those organisations that embrace these practices and implement them with a view to improving their employee engagement, will not only comply with the new legislation but accelerate the participation, engagement and performance of their people.

To assess your organisation's performance management strengths and opportunity areas we invite you to download and complete the complimentary Performance Management Checklist and article titled Is your organisation ready for your next round of performance discussions?

People Axis would be happy to review your checklist and discuss practical and cost effective opportunities with you on how you can maximise this important system. For more information e-mail us at info@peopleaxis.com.au or link to Performance Management.





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