Performance and Misconduct Policy

This Poor Performance and Misconduct Policy can be used to ensure employees are aware of the expected standards of performance and behaviour at work, and the consequences of any failure to meet these standards. This Policy outlines the disciplinary process that may apply for poor performance or conduct issues based on their frequency and/or severity.

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Last updated October 24, 2025

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Suitable for Australia

Performance and Misconduct Policy

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What is a performance and misconduct policy?

A performance and misconduct policy sets out the standards of behaviour and performance expected from employees and outlines the consequences for failing to meet these standards.
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When should you use a performance and misconduct policy?

You should use this policy when you want to clearly communicate workplace expectations, manage employee behaviour or performance issues, and outline disciplinary procedures to prevent disputes or claims.
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What should be in a performance and misconduct policy?

A policy should include expected standards, examples of misconduct, disciplinary processes, consequences for breaches, and the company’s right to vary procedures based on specific circumstances.
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Frequently asked questions

How does this policy help protect my business?

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Does the policy comply with Australian workplace laws?

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Can the disciplinary process be adapted to different situations?

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What are some examples of misconduct covered?

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Are there any limitations to using this policy?

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How should this policy be communicated to employees?

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What steps should I take after implementing the policy?

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View Sample Performance and Misconduct Policy

Performance and Misconduct Policy
risk level indicator at Low level

The Legal Risk Score of a Performance and Misconduct Policy Template is Low

Our legal team have marked this document as low risk considering:

  • The document allows the Company to vary the disciplinary process based on the specific circumstances, which could lead to inconsistencies in how employees are treated.
  • The categories of unsatisfactory conduct and serious misconduct are broadly defined, which might give the Company substantial discretion to determine what constitutes a breach, potentially leading to subjective interpretations.
  • The lists of examples for unsatisfactory conduct and serious misconduct are not exhaustive, which may leave employees uncertain about what other behaviors could be grounds for disciplinary action.

Meet Our Users

Articles about Performance and Misconduct Policy

How to Distinguish Misconduct from Poor Performance
By Jackie Olling|Nov 26, 2025

How to Distinguish Misconduct from Poor Performance

Poor performance and misconduct can both severely impact your business. Find out how to differentiate between them in this article.

When Employers Don’t Have to Give Notice
By Cecilia Tran|Dec 5, 2025

When Employers Don’t Have to Give Notice

What is the purpose of a notice period and when do employers need to give one? Find out when employers don’t need to give notice periods.

A Guide to Managing Employee ‘No Shows’
By Chloe Yoo|Sep 11, 2020

A Guide to Managing Employee ‘No Shows’

Employee no shows can cause big problems for businesses. Learn how to manage unexplained absences effectively and legally here.

Next Steps When Your Employee Completes Probation
By Shantelle Dang|Feb 21, 2024

Next Steps When Your Employee Completes Probation

When your employee completes probation, you must decide whether to confirm or terminate their employment. Find out what to take into consideration here.

What Counts as Serious Misconduct in the Workplace?
By Paul Taylor|Jun 26, 2019

What Counts as Serious Misconduct in the Workplace?

Serious misconduct in the workplace can be difficult to manage and may result in termination. Find out here what behaviour amounts to serious misconduct.

How to Effectively Manage Underperformance
By Diana Liu|Feb 12, 2024

How to Effectively Manage Underperformance

Learn about how you can deal with underperforming employees in your company.

Preventing Underperformance in the Workplace
By Laura Worrad|Dec 5, 2025

Preventing Underperformance in the Workplace

Managing underperformance in the workplace can be a difficult task, however there are measures you can take to lower the risk of this happening.

What Is Performance Management?
By Dominic Woolrych|Sep 6, 2015

What Is Performance Management?

Learn what performance management in workplace means and what a performance management policy in workplace should include.

Telstra goes SOS only.
By Anthony Guerrieri|Feb 10, 2016

Telstra goes SOS only.

Read about the Telstra outage, and why it occurred.

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