Termination is the nuclear option. It signals a failure in the employment relationship and sends a shockwave through your team.
Beyond the cultural impact, it triggers immediate risks: severance pay, unfair dismissal claims, and potential reputational damage. There is no faster way to destroy your employer brand than firing people poorly.
However, sometimes it is necessary. If you are considering letting an employee go, avoid these common pitfalls to protect your business.
1. Distinguish Performance from Misconduct
Before you act, you must be clear on why you are terminating them.
Is it a capability issue (they can’t do the job)? Or is it a behavioral issue (they refuse to do the job)?
For example, if an IT employee fails to update a system, was it a mistake, or was it negligence? If it is a behavioral issue, you may need to launch a Melbourne misconduct investigation to prove the intent before you move to termination.
Warning: Never terminate an employee due to a personality clash. This is not a valid reason for dismissal and will likely land you in the Fair Work Commission.
2. Don’t Weaponize the “PIP”
A Performance Improvement Plan (PIP) should be a genuine tool to help an employee succeed, not just a tick-box exercise to fire them.
If you use a PIP as a pre-determined path to exit, you are walking into a legal trap. If an employee successfully completes the PIP but you fire them anyway, you risk a discrimination or adverse action lawsuit.
If you are unsure if your process is compliant, engaging an external HR investigation consultant can ensure your documentation stands up to scrutiny.
3. No Documentation = No Defence
The biggest mistake organizations make is terminating without a paper trail.
If an employee files an Unfair Dismissal claim, the onus is on you to prove the termination was fair. If you cannot produce written warnings, meeting notes, and clear evidence of the performance gaps, you will likely lose.
Even if the employee was terrible, without documentation, the law sees the termination as “harsh, unjust, or unreasonable.”
4. Don’t Make Decisions on Emotion
Poor performers are frustrating. They cost money and damage morale. However, you cannot fire someone just because you are angry.
Termination must be a logical, last-resort decision. Before pulling the trigger, ask yourself:
- Have I given them clear expectations?
- Have I provided the training required to meet those expectations?
- Is this actually a structural issue, not a personal one?
If you rush this decision based on frustration, you miss the opportunity to fix the root cause.
5. Check Your Handbook
Your Employee Handbook is a contract of sorts. If your handbook promises “Progressive Discipline” (e.g., three warnings before firing), but you fire someone after one warning, you have breached your own policy.
Always ensure your actions align with your documented procedures. If you need to verify facts before acting, a broad Melbourne workplace investigation can give you the certainty you need to proceed safely.
Conclusion
Terminating an employee is difficult, but doing it the wrong way is dangerous.
Make sure you have a clear understanding of the issue (performance vs misconduct), a genuine attempt to support the employee, and a rock-solid paper trail.
Considering Termination?
Ensure you have the evidence first. Jolasers helps you gather the facts before you make the call.
Telephone: 0418 101 164 (Stephen Oliver)
Service Areas:
Misconduct | HR Support
Common Questions
What is Unfair Dismissal?
Under the Fair Work Act, a dismissal is unfair if it is harsh, unjust, or unreasonable. This often happens when there is no valid reason or no procedural fairness (no chance to respond).
Can I fire someone instantly?
Only for ‘Serious Misconduct’ (e.g., theft, violence, serious safety breaches). For performance issues, you generally must provide warnings and a chance to improve.
Do I need a support person for a termination meeting?
Yes. Refusing to allow a support person is a major red flag for the Fair Work Commission and can make the dismissal unfair.