Workplace Relations Australia: Tips: Performance Management and Contracts

Monday, February 22, 2010

Tips: Performance Management and Contracts

What not to put in Employment Contracts

It is good practice not to provide specific reference to performance management processes or review/feedback schedules in your contracts as you will be bound to abide by them. If you fail to abide to the requirements, then you forfeit your right to terminate on performance grounds as the feedback may have facilitated an improvement in performance.

Deal with a problem immediately..don’t wait.

Deal with a performance related issue straight away..don't procrastinate and definately don't wait for next scheduled review. Some organisations have found that more regular but less formal performance appraisals, which are documented, are quicker and more effective.

Performance Management Training

Provide your management with performance Management training
Distribute your policies and procedures for dealing with performance issues to your management to ensure consistency in application. You should also provide training to your managers to ensure they have the skills to comply and apply the guidelines.

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Did You Know?

The new Fair Work Legislation came into effect on the 1st July 2009 replacing Work Choices 1995 and the Workplace Relations Act 1996

Unfair Dismissal

As from 1 July 2009, employers who employ 15 employees or more will be now be subject to the unfair dismissal legislation. However businesses with less than 15 full time equivalent employees are exempt from unfair dismissal claims during the employee’s first 12 months of employment.

The unfair dismissal legislation only applies to an employee who earned less than $153,600 (to 30 June 2021), not including commissions and bonuses unless they are subject to a modern award or enterprise agreement.

Leave

Under the new legislation sick leave is now referred to as personal and Carer’s leave provision.

Under the New Fair Work Legislation, all employees who fall under the act are entitled to 10 days personal Carer's leave per annum

Employee's sick leave entitlement is cumulative and there is also no upper limit. All unused leave is cumulated year on year indefinitely.

While on unpaid parental leave, an employee does not accumulate annual leave and personal/carer's leave (which includes sick leave). However, a period of unpaid parental leave does not break an employee's continuity of service for the purposes of long service leave?

You may refuse a request for annual leave if refusal is reasonable and necessary because of your business' operational requirements. Accordingly you may reject the employee's annual leave application. If you decide to do this however, you should explain these grounds clearly to the employee and discuss other times that may be more suitable.

Fair Work Inspector

A Fair Work Inspector has the right to inspect your workplace as part of an audit campaign or in response to a complaint.

On showing suitable identification, Fair Work Inspectors may undertake inspections without warning if they believe work governed by national workplace relations laws is/has been done there.

During an inspection, a Fair Work Inspector can

i) inspect any work, process or object

ii) interview any person,

iii) require a person to tell them who has custody of, or access to a record or document,

iv) require a person who has custody of, or access to a record or document to produce the record or document either while they are on the premises, or within a specific period,

v) inspect and make copies of any record or document that's kept on the premises or is accessible from a computer kept there, take samples of any goods or substances.