Poor performance can be a valid reason for dismissal, but only if the employer follows a proper performance management process. A single instance of poor performance is almost never sufficient grounds.
Last verified: 21 May 2026Poor performance can be a valid reason for dismissal, but only if the employer follows a proper performance management process. A single instance of poor performance is almost never sufficient grounds.
Dismissal for poor performance is unfair if the employer failed to clearly communicate performance expectations, did not provide adequate training or support, did not give formal written warnings, or did not allow a reasonable opportunity to improve. The Fair Work Commission (FWC) consistently finds dismissals unfair where there is no documented performance improvement plan.
If the poor performance allegations are pretextual (i.e., the real reason is discrimination, exercising a workplace right, or making a complaint), general protections under Part 3-1 of the Fair Work Act may apply. This provides an additional avenue for legal action beyond unfair dismissal.
The employer must: (1) clearly identify the performance issues in writing, (2) provide specific examples of where performance falls short, (3) give formal written warnings, (4) set a reasonable performance improvement plan with measurable targets and a timeframe, (5) offer support such as training or mentoring, and (6) give the employee a genuine opportunity to respond before any decision is made.
In Parmalat Food Products v Wililo (2011), the FWC found dismissal was unfair despite genuine performance concerns because the employer failed to follow a proper warning process. The Commission regularly emphasises that procedural fairness is just as important as having a valid reason.
21 days
From the date your dismissal takes effect. Strictly enforced.
26 weeks’ pay
For unfair dismissal claims. General protections claims have no cap.
Poor Performance can be a valid reason for dismissal under the Fair Work Act, but the employer must follow a proper process including investigation, warnings (where appropriate), and giving the employee a chance to respond. Failure to follow a fair process can make the dismissal unfair even if the reason is valid.
Yes, provided you meet the eligibility requirements: you must have completed the minimum employment period (6 months for large employers, 12 months for small business) and earn below the high-income threshold ($183,100) unless covered by an award or enterprise agreement. You must lodge within 21 days.
Unfair dismissal focuses on whether the dismissal was harsh, unjust, or unreasonable (capped compensation at 26 weeks' pay). General protections claims apply when dismissal is for a prohibited reason such as discrimination, exercising a workplace right, or union activity. General protections have no compensation cap and the employer bears the reverse onus of proof.
You have 21 calendar days from the date your dismissal takes effect to lodge an application with the Fair Work Commission. This deadline is strictly enforced and extensions are only granted in exceptional circumstances.
The FWC can order reinstatement (getting your job back) or compensation of up to 26 weeks' pay. The amount depends on factors including how long you worked there, your remuneration, efforts to find new employment, and any misconduct that contributed to the dismissal.
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FairWork Mate is an independent commercial service. We are not affiliated with, endorsed by, or associated with the Fair Work Ombudsman, the Fair Work Commission, or any Australian Government agency. Content is general information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.
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