Expert Employee Management Guidance for Employers

Manage underperformance confidently and protect your business from costly disputes with legally defensible performance management processes.

Managing underperformance well requires more than a difficult conversation — it requires an employee performance management system that’s consistent, well-documented, and legally defensible.

At Hentys, we help Melbourne employers build and run performance management systems that stand up to scrutiny — whether that’s an employee performance review process, a performance improvement plan, or documentation for a disciplinary outcome. Our approach ensures your performance management practices are practical, consistent, and legally sound. We support employers with:

  • Designing and implementing an employee performance management system
  • Running structured employee performance reviews
  • Drafting performance improvement plans (PIPs)
  • Ensuring procedural fairness at every stage
  • Reducing exposure to unfair dismissal and adverse action claims

We primarily work with Melbourne employers, with additional support for businesses in Perth, Sydney, Adelaide, and Brisbane.

What Is an Employee Performance Management System?

An effective employee performance management system is more than an annual review — it’s an ongoing process that sets expectations, tracks performance, and provides a clear, fair pathway for addressing underperformance when it arises. A well-designed system typically includes:

  1. Clear performance standards — documented expectations tied to the employee’s role
  2. Regular employee performance reviews — structured, recorded, and consistent across the business
  3. Early intervention — informal feedback before issues escalate into a formal process
  4. Performance improvement plans — a documented, time-bound process for addressing underperformance
  5. Consistent documentation — a clear paper trail that protects the business if a dispute arises

We help employers build each of these components from the ground up, or strengthen an existing system that isn’t holding up under pressure.

Performance Management Guidance & Employee Performance Reviews

We help Melbourne businesses design and run employee performance review processes that are clear, fair, and legally compliant. This includes drafting, advising on, and reviewing all relevant documentation — from review templates to performance improvement plans — so every step of your performance management system is defensible if challenged. We assist with:

  • Setting performance benchmarks and KPIs
  • Structuring the employee performance review cycle
  • Drafting performance improvement plans and feedback templates
  • Addressing underperformance consistently across teams

Whether you’re building a performance management system from scratch or refining an existing one, our tailored guidance gives you the tools to manage performance professionally while fostering a culture of accountability.

Disciplinary Guidance

When a performance issue moves beyond informal feedback, how you document and run the disciplinary process matters. Our disciplinary guidance services help you take proactive, consistent steps — drafting disciplinary letters, preparing for meetings, and documenting conversations — so your performance management system holds up to scrutiny and demonstrates procedural fairness.

Performance Management Legal Advice

Every stage of a performance management system needs to align with current employment law. We review performance review templates, improvement plans, and disciplinary documentation to ensure they meet legislative and common law requirements — reducing the risk of unfair dismissal claims, adverse action claims, or other disputes arising from your performance management process.

By keeping your system compliant and well-documented, we help you focus on performance outcomes with the confidence that your process is legally sound.


For urgent WorkCover and Employment matters, please call Timothy Ashton at any time on 0416 094 174.

Contact Form

To find out more about our services, please complete our enquiry form.

Employee Performance Management FAQ’s

What is an employee performance management system?
An employee performance management system is the ongoing process a business uses to set expectations, monitor performance, provide feedback, and address underperformance — including reviews, improvement plans, and disciplinary steps.
What is a performance improvement plan (PIP)?
A performance improvement plan is a documented, time-bound process that sets out specific performance expectations, support provided, and consequences if performance doesn’t improve. It’s a key part of demonstrating procedural fairness.
What happens if I don’t follow a fair performance management process?
Skipping steps — such as failing to give an employee a genuine opportunity to improve — can expose a business to unfair dismissal or adverse action claims, even if the underlying performance concern was legitimate.
How do you handle underperformance linked to personal or health issues?
These situations require extra care and often specific legal considerations. We advise employers on how to manage performance concerns fairly while meeting other legal obligations that may apply.
How often should employee performance reviews be conducted?
Most businesses run formal employee performance reviews annually or bi-annually, supported by informal check-ins throughout the year. The right frequency depends on your industry and workforce size.
Do I need a lawyer to manage underperformance?
Not for every conversation, but legal input is valuable when drafting your performance management system, handling a complex case, or when underperformance may lead to termination — getting the documentation and process right reduces the risk of an unfair dismissal or adverse action claim.
Can Hentys help build our performance management system from scratch?
Yes. We work with employers who don’t yet have a formal system in place, helping design review templates, improvement plan frameworks, and documentation processes tailored to your business.
What industries do you provide performance management guidance to?
We work with employers across professional services, construction, manufacturing, retail, and healthcare, tailoring performance management systems to the needs of each industry.

Why Choose Hentys Lawyers?

Protect your business and ensure a seamless approach to managing performance, investigations, and misconduct. Contact Hentys today for expert advice and tailored solutions that give you confidence in handling even the most challenging workplace scenarios. Let us help you navigate the complexities of workforce management with legally compliant tools and strategies that set your business up for success.