Managing the performance and behaviour of employees comes with a range of challenges for business owners. One of those challenges may be the need to write and issue a formal warning letter to an employee because of poor performance or misconduct.
The idea that an employee must be issued with three separate warnings before they can be dismissed is a common misconception. There is no general rule requiring an employer to give an employee three warnings, or even one warning, before ending their employment. However, employers should have a valid reason for taking disciplinary action and follow a fair process. Where poor performance is the issue, an employee should usually be given an opportunity to improve.
What is a written warning letter?
A written warning letter is a type of formal disciplinary action given to an employee to address concerns about their work performance or conduct.
In your letter, you can clearly explain the performance or conduct concerns, any relevant workplace policies, procedures or expectations, and what the employee needs to do to address them. It provides a written record of the concerns and the expectations going forward.
Depending on the circumstances, a written warning may follow earlier discussions about the employee's performance or conduct. However, a verbal warning is not necessarily required before a written warning is issued.
What is the procedure for an employee written warning?
If you have concerns over an employee's performance or conduct, you should follow a fair process before taking disciplinary action. You should also check whether any applicable modern award, enterprise agreement, employment contract or workplace policy contains requirements relevant to the process.
You should:
- Schedule a private meeting with your employee and tell them what the meeting is about. Give them reasonable notice of the meeting (e.g. 24 – 48 hours) and provide them with an appropriate opportunity to bring a support person.
- Provide the employee with clear details of the performance or conduct concerns and any relevant information or evidence relating to those concerns.
- Give the employee a reasonable opportunity to respond to the concerns and genuinely consider their response before deciding whether disciplinary action is appropriate.
- If a warning is appropriate, clearly explain the required improvements or expectations, any reasonable timeframe for improvement and the possible consequences if the required standard is not met.
- Take detailed notes of what was discussed and the outcome of the process. This can be referred to if the behaviour or performance does not improve and an additional meeting is required.
How long is a written warning valid?
There is no set expiry date under the Fair Work Act 2009 (Cth) (the Act) for a written warning. How long a warning remains relevant will depend on the circumstances, including the nature of the issue, the employee's subsequent conduct or performance, the employer's policies and the length of time that has passed.
Employers should avoid automatically treating an old warning as either valid or invalid solely because a particular period, such as six or 12 months, has passed. When considering further disciplinary action, assess how relevant the previous warning remains to the current circumstances.
Struggling with employee performance?
Get specialist advice to address performance issues clearly and constructively.
What are the benefits of issuing a warning letter?
Sometimes it’s possible an employee is unaware of your concerns about their performance or behaviour, especially if you have not spoken to them about it before.
Providing an employee with a warning letter can clearly identify the concerns, explain the standard expected of them and set out what needs to change.
Outline your company expectations
A written warning letter for performance or misconduct gives you the opportunity to list what improvements your employee needs to make. It can also detail potential consequences, which may include further disciplinary action up to and including termination of employment, if the required improvement is not made or further misconduct occurs.
Allow the employee a chance to respond
As part of a fair disciplinary process, it is important to give the employee a reasonable opportunity to respond to the concerns raised. They may provide an explanation or information about circumstances relevant to the issue, ask questions and clarify future expectations.
Disciplinary meetings can also be tense and emotional, so it’s important to remain calm, keep the discussion focused on the workplace concerns and genuinely consider the employee's response.
Improving poor performance
Perhaps the most notable benefit of issuing a warning letter is that it could improve your employee's performance in the business. It can highlight the steps needed to meet the required performance standards and workplace expectations.
Depending on the circumstances, this may include implementing a Performance Improvement Plan (PIP) that sets out clear and reasonable performance expectations, support and a timeframe for improvement.
A PIP can enable you to monitor their progress while providing your employee with the opportunity to improve their performance. Regular follow-up meetings can also be used to review progress and identify whether further training or support is required.
Need help managing poor performance?
Talk to an adviser about setting expectations and taking the right next steps.
What is a written warning letter template?
A written warning letter template is used to provide structure when documenting the outcome of a disciplinary or performance management process. It can help employers clearly set out the reason for the warning, the required standards or improvements, any relevant timeframe and the potential consequences if the required improvement is not achieved.
For advice on writing and issuing a warning letter, contact Peninsula’s expert team 24/7.
This article is for general information purposes only and does not constitute as business or legal advice and should not be relied upon as such. It does not take into consideration your specific business, industry or circumstances. You should seek legal or other professional advice regarding matters as they relate to you or your business. To the maximum extent permitted by law, Peninsula Group disclaim all liability for any errors or omissions contained in this information or any failure to update or correct this information. It is your responsibility to assess and verify the accuracy, completeness, and reliability of the information in this article.
