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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Frequently asked questions

Use this Policy if:

  • You want to ensure clarity regarding expected standards of performance and conduct at the workplace;
  • You would like to provide clarity on the difference between unsatisfactory conduct, and serious misconduct which may result in instant dismissal;
  • You believe the Company would benefit from having a clear disciplinary process that can be followed depending on the frequency and/or severity of an employee’s poor performance or misconduct;
  • You need to communicate the consequences of poor performance and/or misconduct at the workplace, including the Company’s right to take disciplinary action; and
  • You want to protect your Company from any potential disputes or claims relating to the disciplinary process in the event of poor performance and/or misconduct.

What does this Policy cover?

  • Expected standards of performance and behaviour at the workplace;
  • Consequences of poor performance or misconduct at the workplace;
  • A framework for managing poor performance or misconduct, depending on the frequency and/or severity of the issue;
  • Examples of unsatisfactory conduct or misconduct;
  • Examples of serious misconduct; and
  • The right of the Company to vary the disciplinary process based on the specific circumstances of any performance and/or conduct issues.

Further information:

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.

Articles about Performance and Misconduct Policy

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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
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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.

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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.

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