This recent Fair Work Australia (FWA) decision (Quattrocchi v Monsanto) highlights the importance of being genuine when you are performance managing your employees.

A warehouse employee with 20 months’ service was dismissed because of work errors. The employee claimed unfair dismissal.

The employer appeared to have ticked all the boxes prior to dismissing the employee. For example:

• FWA ruled that the reason for termination – errors in the management, recording, documentation and dispatching of goods, resulting in orders being incorrectly filled or despatched – was a valid reason for termination relating to the employee’s capacity.

• The employee knew that his employer was unhappy about errors in his work and that his job was on the line. The employer indicated this in 3 quarterly performance reviews, with the last review resulting in a 60 day performance improvement plan.
• During the 60 day plan period, the employee made 3 further significant errors. The employer informed the employee that this was grounds for dismissal, invited him to bring a support person and gave the employee a chance to respond.

But despite all of this, FWA ruled that it was a borderline case. Why?

FWA looked at other reasons that contributed to the employee’s underperformance, such as the fact that the employer had a number of managers and some times no manager at all. It also took into account the fact that the company had introduced new inventory control software in the warehouse.

FWA also decided that the employee’s manager did not appear interested in helping the employee to improve his work performance in his last months of work – she just wanted him out of the organisation. Human resources also appeared to go through the motions. Although a performance management process was put in place, it did not state clear goals or ways measure progress. Nor did it provide support for the employee to improve.

In the end, the employee’s unfair dismissal claim only failed because FWA ruled that the employee was also disinterested in addressing the performance issues.

Without that, FWA would have found the dismissal unfair and most likely ordered reinstatement or compensation.

Regards,

Charles Power
Editor-in-Chief
Employment Law Practical Handbook

Tags: fair work australia, FWA, human resources, performance management, underperformance, unfair dismissal claim