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:
- Clear performance standards — documented expectations tied to the employee’s role
- Regular employee performance reviews — structured, recorded, and consistent across the business
- Early intervention — informal feedback before issues escalate into a formal process
- Performance improvement plans — a documented, time-bound process for addressing underperformance
- 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.
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Employee Performance Management FAQs
Performance Management Questions Answered
Practical answers for Melbourne employers, business owners and HR professionals managing employee underperformance, performance improvement plans, disciplinary processes and workplace performance reviews. Understand how to manage employee performance fairly, consistently and in accordance with employment law obligations.
What is an employee performance management system?
An employee performance management system is a structured process used by employers to set performance expectations, monitor employee progress, provide feedback and address underperformance.
An effective system generally includes clear performance standards, regular employee reviews, documented feedback, performance improvement plans and consistent management procedures.
Hentys assists Melbourne employers with designing and implementing performance management systems that support accountability and reduce employment-related risks.
How should an employer manage an underperforming employee?
Employers should begin by identifying specific performance concerns and communicating clear expectations to the employee.
A fair performance management process may include:
- Identifying and documenting performance issues
- Explaining the required performance standards
- Providing constructive feedback
- Considering training or additional support
- Allowing a reasonable opportunity to improve
- Reviewing progress and documenting outcomes
Hentys provides guidance on managing underperformance consistently while considering applicable employment law obligations.
What is a performance improvement plan (PIP)?
A performance improvement plan, commonly called a PIP, is a documented process that identifies performance concerns and establishes measurable improvement goals.
A PIP typically outlines the required standards, available support, review periods and potential consequences if performance does not improve.
Hentys assists employers with drafting and reviewing performance improvement plans tailored to their workforce and management requirements.
Is a performance improvement plan legally required before dismissal?
A formal performance improvement plan is not legally required before every dismissal in Australia.
However, where dismissal relates to unsatisfactory performance, employers may need to demonstrate that relevant concerns were communicated, appropriate warnings were provided where required and the employee had a reasonable opportunity to respond.
Applicable awards, enterprise agreements, employment contracts and workplace policies may impose additional requirements.
Hentys advises employers on appropriate performance management procedures before termination decisions are made.
How long should a performance improvement plan last?
There is no single performance improvement plan duration that applies to every employee.
The appropriate timeframe depends on the employee’s role, the performance concerns, the improvements required and the time reasonably needed to demonstrate progress.
Employers should establish realistic objectives, scheduled review meetings and clear expectations rather than applying an arbitrary timeframe.
How often should employee performance reviews be conducted?
Many businesses conduct formal performance reviews annually or twice a year, supported by regular informal feedback and progress discussions.
The appropriate frequency depends on the organisation, employee responsibilities and performance management objectives.
Hentys helps employers establish structured employee performance review processes with clear documentation and measurable expectations.
What is procedural fairness in employee performance management?
Procedural fairness involves providing employees with an appropriate opportunity to understand and respond to concerns that may affect their employment.
In performance management, this may involve clearly explaining the concerns, considering the employee’s response, providing appropriate warnings and applying a consistent process.
The requirements depend on the circumstances and relevant employment laws. Hentys assists employers in establishing fair and defensible processes.
Can an employee be dismissed for poor performance?
Poor performance may provide a valid reason for dismissal in appropriate circumstances. However, employers must consider the relevant facts and applicable legal protections.
Relevant considerations may include whether performance concerns were clearly identified, whether warnings were appropriate, the employee’s opportunity to respond and the fairness of the overall process.
Employers should seek legal advice before dismissing an employee where there is a risk of unfair dismissal, adverse action or other employment claims.
What is the difference between poor performance and employee misconduct?
Poor performance generally concerns an employee’s failure to meet expected standards of work, productivity or capability.
Misconduct involves inappropriate behaviour or breaches of workplace rules, policies or lawful directions.
The distinction is important because performance management and disciplinary processes may require different responses.
Hentys helps employers identify appropriate management procedures and provides workplace investigation support where allegations require formal fact-finding.
Can an employee raise an unfair dismissal claim after performance management?
An employee may be able to lodge an unfair dismissal application if they meet the relevant eligibility requirements and believe their dismissal was harsh, unjust or unreasonable.
A documented performance management process may help demonstrate how concerns were addressed, but documentation alone does not guarantee a dismissal will be lawful.
Hentys provides employment law advice to employers seeking to reduce unfair dismissal and general protections risks.
How should employers manage underperformance linked to illness or disability?
Where performance concerns may be connected to illness, injury or disability, employers should consider whether additional legal obligations apply.
This may involve reviewing relevant medical information, considering reasonable adjustments, assessing the employee’s capacity to perform their role and avoiding discriminatory employment decisions.
Hentys assists employers with complex performance management matters, including those involving workplace injury management and fitness-for-work concerns.
What documentation should employers keep during performance management?
Employers should maintain accurate and appropriate records of performance concerns and the steps taken to address them.
Relevant documentation may include:
- Position descriptions and performance expectations
- Employee performance review records
- Meeting notes and feedback discussions
- Performance improvement plans
- Written warnings where appropriate
- Employee responses and explanations
- Progress reviews and final decisions
Records should be factual, consistent and managed in accordance with applicable privacy and employment obligations.
Can Hentys develop performance management policies and procedures for our business?
Yes. Hentys assists employers with developing and reviewing employee performance management systems, performance review templates, improvement plans and disciplinary procedures.
These processes can be tailored to the organisation’s workforce, industry, operational requirements and relevant legal obligations.
Hentys also provides workplace policy and procedure development for employers seeking consistent management frameworks.
Does Hentys provide employee performance management advice outside Melbourne?
Yes. Hentys primarily supports Melbourne employers and also assists businesses in Sydney, Brisbane, Adelaide and Perth.
Services include performance management system development, employee performance reviews, performance improvement plans, disciplinary guidance and employment law advice.
Contact Hentys to discuss your organisation’s performance management requirements.
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.