Performance metrics and appropriate workplace conduct are important parts of any business. Often, some of an employer’s expectations will be outlined in the employment contract when an employee joins the business, but it’s unlikely the document will be comprehensive. This is where a performance and misconduct policy comes in.
Why do you need a performance and misconduct policy?
Simply put, a performance and misconduct policy outlines the expectations and standards of performance that a business holds its employees to. It provides the business with some certainty regarding what is expected of employees, so that an employer can point to a document in support of telling an employee what’s expected, including the possible ramifications if the expectations are not met.
In an ideal world, a performance and misconduct policy would exist as nothing more than a clear set of guidelines and would never need to be enforced. Unfortunately, disciplinary action by an employer may be necessary in response to unsatisfactory performance or misconduct by an employee. This includes counselling, warnings, and termination of employment. Having a performance and misconduct policy in place allows for clarity and can guide you through what can be a difficult process.
“If you terminate an employee for misconduct, you can point to the relevant provision in the policy which you can say has been breached so that the employee was on notice of the possible ramifications,” said Abraham Ash, director at Australian Business Lawyers & Advisors.
What are the risks?
You don’t want to get stuck without a performance and misconduct policy when the need arises and you have nothing to support your decisions when challenged.
Improperly handled disciplinary action can expose an employer to legal risk. Risks include findings of unfair dismissal, adverse action, and discrimination. A successful claim against an employer can also lead to the imposition of financial penalties by the Fair Work Commission, reinstatement of an unfairly dismissed employee, and damage to an employer’s reputation.
“It must also be carefully drafted to ensure the policy has enough flexibility and discretion so that the employer does not inadvertently impose unnecessary obligations upon itself and can take whatever steps might still be necessary,” Mr Ash added.
How we help
Creating a performance and misconduct policy isn’t a process many employers are familiar with, so use templates that can fast-track the process. Along with many other documents and policies, My Business Workplace has a Performance and Misconduct Policy. It offers comprehensive guidance and can be used by both small and large employers.
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