MANAGING UNDERPERFORMANCE GUIDE
Contents
Contents ................................................................................................................................ 1
Introduction ........................................................................................................................... 1
Objectives ............................................................................................................................. 2
Fairness in Managing Underperformance .............................................................................. 2
Roles and Responsibilities in Improving Performances ......................................................... 3
Interaction with Other Processes ........................................................................................... 3
Procedures ............................................................................................................................ 4
Informal Underperformance Management ............................................................................. 4
Formal Underperformance Management - Stage 1 ................................................................ 4
Formal Underperformance Management - Stage 2 ................................................................ 5
Right of Review ..................................................................................................................... 7
Reduction in Classification .................................................................................................... 7
Termination of Employment ................................................................................................... 7
Further Information ................................................................................................................ 8
Introduction
1.
This policy has effect from the commencement date of the Office of the Australian
Building and Construction Commission Enterprise Agreement 2011-2014 (ABCC EA).
2.
In accordance with section 257 of the
Fair Work Act 2009 and clause 15 of the
Enterprise Agreement, this policy (as in force from time to time) is incorporated in the
Enterprise Agreement. Where the Australian Building and Construction
Commissioner proposes to change or repeal this policy, the Australian Building and
Construction Commissioner commits to following the relevant consultation
procedures outlined in the Enterprise Agreement.
3.
As part of the transition to the ABCC EA, this guide will be subject to review within 3
months of the commencement of the Agreement.
4.
Fair Work Building and Construction (FWBC) Performance and Development
Framework (PDF) supports the ongoing development of the agency’s performance
culture. Its aims are to:
4.1
foster a culture that supports active performance management and high
performance;
4.2
ensure that employees and managers are aware of what is expected of them
individually and within teams with a balanced focus on achieving both key
outcomes and demonstration of key agency behaviours;
4.3
provide a fair and transparent process for managing any identified
underperformance;
4.4
ensure that there is a common basis for performance management across the
agency, which is linked to business and workforce planning activities, key
agency behaviours and work level standards;
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4.5
provide a mechanism for regular two-way feedback on performance;
4.6
contribute to the ongoing development of employees and recognise that
opportunities for learning and career development are a matter of joint
responsibility between the employee and manager; and'
4.7
demonstrate how the employee's individual work contributes to the agency's
objectives.
5.
This guide applies to all non-SES employees, with the exception of
probationers and non-ongoing employees.
6.
For the purposes of this guide the term “supervisor” refers to the person who
manages the employee’s day-to-day duties, including allocation and monitoring
of work, approval of leave etc. The term “manager” refers to the supervisor’s
supervisor.
Objectives
7.
The objectives of managing underperformance in the agency are to:
7.1
support and assist employees to attain and sustain performance of an
acceptable standard;
7.2
ensure supervisors and managers address underperformance issues as they
arise; and
7.3
ensure that the principles of natural justice and procedural fairness are
applied to the processes and decisions involved.
Fairness in Managing Underperformance
8.
Underperformance is identified when a manger/supervisor makes an assessment that
an employee’s performance is “unsatisfactory”, and this is notified to the employee.
This should occur at the time the unsatisfactory performance is identified.
Unsatisfactory work performance is defined in the PDF as
“when an employee fails to
attain and sustain a performance of an acceptable standard”.
9.
An assessment of unsatisfactory work performance indicates that the employee has
failed to deliver satisfactory results against a number of significant responsibilities. An
unsatisfactory rating means that the employee has not met the work requirements
and/or has failed to demonstrate agency behaviours in the workplace.
10.
The agency shall have regard to the following during any underperformance process:
10.1
streamlined and efficient processes;
10.2 working with the employee to restore the performance of the employee to an
acceptable level;
10.3 natural justice and procedural fairness;
10.4 learning and development assistance for improving;
10.5 active performance management as an integral part of the workplace culture;
and
10.6 performance measures and standards to be clearly defined.
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Roles and Responsibilities in Improving Performances
11.
Role
Responsibilities
Managers and
• ensure managers effectively manage the work performance and
Senior
development of employees, including unsatisfactory performance.
Executives
• provide advice, guidance and support to managers on their
management of unsatisfactory performance.
• critically review the recommended commencement of
underperformance procedures, particularly where
manager/employee agreement cannot be reached on the existence
of unsatisfactory performance and/or the procedures to apply.
Team leaders
• ensure a current Performance Agreement is in place, as per the PDF
• advise employees when performance is unsatisfactory.
• Actively address unsatisfactory performance in a timely manner and
adhere to the relevant policy
• ensure reasons for unsatisfactory performance are jointly discussed.
• identify action that can return work performance to the expected
standard.
• Notify Human Resource (HR) whenever an underperformance
process is to be instigated.
Employees
• ensure a current Performance Agreement is in place, as per the PDF
• perform their assigned duties to the acceptable standard indicated in
their Performance Agreement (PA) or underperformance Action
Plan.
• seek clarification of expected work outcomes and/or performance
standards if these are considered unreasonable or inconsistent with
their PA or Action Plans
• actively identify and participate in relevant learning and development
activities
HR
• provide employees, managers and team leaders with guidance and
advice on the management of unsatisfactory performance and any
related management issues throughout the process in a timely
manner.
Human
• take timely action in respect of underperformance casework referred
Resources
for action or advice.
Assistant
Director
Interaction with Other Processes
12.
Managers and team leaders should not delay action to improve performance due to
either an investigation into an alleged breach of the Code of Conduct being underway
or planned or a Review of Action being in progress.
13.
Managers and team leaders may take action to improve performance where an
employee has a medical condition. The strategies devised to address the
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underperformance must take the employee’s health into account and incorporate the
principles of reasonable adjustment.
14.
Reasonable adjustment means ensuring that any medical restrictions are taken into
account within the work environment. Managers and supervisors should make any
necessary changes to the work environment to reduce any impact that medical
conditions will have on the employee’s ability to perform at their maximum potential.
Procedures
15.
When unsatisfactory performance is identified, the agency will work with affected
employee(s) and their supervisor(s) to attain and sustain the standards required.
16.
The principles of natural justice and procedural fairness will apply throughout the
processes and decisions involved in managing underperformance. Once an
employee has been advised that their performance has been assessed as
unsatisfactory, action to improve performance must.
17.
An employee who disagrees with an assessment that his or her performance is
unsatisfactory should refer to the relevant dispute settlement mechanism. The
process will continue even if an application for review has been made,
18.
The employee may be supported by a person of their choice during the process and
for any meetings that are relevant to the process.
Informal Underperformance Management
19.
When an employee's performance is not at a satisfactory standard, this should be
discussed with the employee as soon as possible, and this
must not wait until the
next formal performance review. During this discussion the employee and supervisor
should:
19.1
identify the specific area (s) of concern in relation to performance;
19.2
discuss the factors that have led to the underperformance;
19.3
establish actions to address the underperformance (such as more regular
feedback meetings; additional training; or temporary change to work
arrangements).
20.
If these actions to address the underperformance do not result in an improvement,
then the supervisor must progress to Formal Underperformance Management.
Formal Underperformance Management - Stage 1
21.
At the commencement of formal underperformance management the supervisor or
manager must advise the employee that their performance has been assessed as
unsatisfactory. This should follow a period of informal underperformance
management, as per paragraphs 29 and 30 and the Performance and Development
Framework.
22.
The manager must also notify HR and their senior manager/s that underperformance
has been identified and Formal Underperformance Management has commenced.
23.
The manager and/or supervisor must:
23.1
identify the specific areas of concern in relation to performance;
23.2
provide the employee with clear and verifiable information as to what has led
to the assessment of unsatisfactory; and
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23.3
reiterate the required expectations and standards;
23.4
provide the employee with the potential consequences should
underperformance not improve.
24.
Managers and/or supervisors should also discuss possible factors affecting
achievement of performance expectations. There may be valid reasons for the
employee’s underperformance and managers and/or supervisors must ensure that
initial feedback is balanced and factual. Factors may include:
24.1
unclear performance expectations;
24.2
misunderstandings about work priorities;
24.3
lack of feedback or ineffective supervision; or
24.4
personal circumstances such as bereavement, health issues and family
matters.
25.
Manager and/or supervisor (in consultation with their manager, where relevant) and
employee should discuss and establish an Underperformance Action Plan (UAP)
Stage 1 in writing that will assist the employee to achieve the expected performance
standard, including specific strategies to address the underperformance. This UAP
Stage 1 should:
25.1
be consistent with the PDF;
25.2
be consistent with the stated Key Outcomes and Behaviours within the
employee's PA;
25.3
detail the work to be performed including completion dates, performance
measures and assessment methods;
25.4
include specific skills development or training activities to support the
employee to improve their performance;
25.5
set future feedback meeting dates to review progress; and
25.6
document the potential consequences, should performance not improve to a
satisfactory standard.
26.
The employee should be given the opportunity to comment on this UAP Stage 1
within seven (7) days of receipt of the advice. The request for comments from the
employee should not impede the commencement of the UAP Stage 1. Any negotiated
changes to the UAP Stage 1 should be implemented immediately and reflected in the
UAP Stage 1.
27.
This stage of the process should not be less than 4 weeks and not exceed two
months, unless approved by HR. The four week period may be shortened if, for
example, a case exists that adequate assessment of performance may be
undertaken in a shorter timeframe.
28.
If the employee's performance is satisfactory at the end of Stage 1, no further action
will be taken and written advice will be provided to the employee informing them of
this assessment. However the employee’s performance should be closely monitored
following the end of the Formal Underperformance Management should keep in
regular contact to ensure the underperformance does not return.
Formal Underperformance Management - Stage 2
29.
If the employee's performance is assessed as unsatisfactory at the end of Stage 1,
the manager will provide the employee with written advice of the need for the
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employee's performance to improve. This advice, which may be in the form of a letter
and an Underperformance Action Plan Stage 2, will specify:
29.1
the expected standard of work and behaviours;
29.2
how the employee's work does not meet that standard, including the
performance management processes already undertaken;
29.3
any additional skills development activity required that was not addressed in
Stage 1;
29.4
the proposed assessment process for Stage 2, including feedback meetings;
29.5
that performance will need to improve over the defined Stage 2 assessment
period (generally six-eight weeks); and
29.6
potential consequences if the employee does not attain and sustain a
satisfactory standard of performance by the end of Stage 2.
30.
The employee should be given the opportunity to comment on this advice within
seven (7) days of receipt of the advice. The advice will then be forwarded to the
Assistant Director HR for review, in addition to the relevant senior manager.
31.
Where appropriate, the manager or senior manager may appoint an independent
person from outside the employee’s work area to undertake the assessment. During
the assessment period, the manager or appointed person will assess the employee’s
performance and produce a progress report at least fortnightly. The employee must
be given the opportunity to comment on the progress reports.
32.
Assessment of performance upon completion of Stage 2.
33.
f the employee’s performance is assessed as satisfactory at the end of the period
defined as Stage 2, no further action will be taken and written advice will be provided
by the manager to the:
33.1
employee;
33.2
relevant senior manager; and
33.3
Human Resources Assistant Director.
34.
Should the employee’s performance become unsatisfactory at any time during the 12
months immediately after a Stage 2 assessment period, the manager can instigate a
new assessment period. The manager has the discretion to initiate a shorter
assessment period (generally four weeks) in consultation with the Assistant Director
HR. Should the period be shortened, the employee will be advised.
35.
If the employee’s performance is assessed as unsatisfactory at the end of the period
defined as Stage 2, the manager will prepare a report including the Stage 2 final
assessment, progress reports, and any other relevant documentation. The report
should indicate
35.1
what the expected standards were and how the employee’s work performance
did not attain and sustain the expected standard;
35.2
any factors that were taken into account during the assessment period, such
as illness, injury, disability or work related issues;
35.3
the process that was followed including the feedback provided to the
employee; and a recommendation on the action/s to be taken.
36.
The employee should be given the opportunity to comment on this report within seven
(7) days of receipt of the report. The report will then be forwarded to the Human
Resources Assistant Director for decision.
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37.
Based on the manager’s report, the Assistant Director HR will write to the employee
to inform them of the finding and of the action to be taken. (The Assistant Director
HR may take into account the employee’s personnel records, including records of
any previous underperformance and referee or supervisor comments when
considering the action to be taken). These actions may include one or more of the
following:
37.1
reassignment of duties, either permanently or temporarily;
37.2
reduction in classification
37.3
termination of employment; or
37.4
other appropriate action.
38.
The employee will be given seven (7) days from receipt of the advice to respond to
the findings and the action proposed by the Assistant Director HR.
39.
The "receipt of advice" means:
39.1
if the employee is at work, the date the letter was hand delivered to the
employee at the workplace ;
39.2
if the employee is not at work, the date the letter was delivered to the
employee’s home address (by courier or by hand);
39.3
the Assistant Director HR, having taken account of the manager’s report and
the employee’s response, will advise the employee in writing of the decision
and the action to be taken with a copy provided to the relevant manager and
senior manager (where relevant);
39.4
should a notice o of reduction in classification be issued it will take effect one
month after the date of the notice.
Right of Review
Reduction in Classification
40.
A reduction in classification may be reviewed under s.33 of the
Public Service Act
1999 (the PS Act).
Termination of Employment
41
The sole and exhaustive rights and remedies of an employee in relation to
termination of employment are:
41.1
under Part 3-1 and Part 3-2 of the
Fair Work Act 2009;
41.2
under other Commonwealth laws (including the Constitution); and
41.3
at common law.
42.
A termination of employment, at the employer’s initiative, must be in accordance with
Part K (Separation) of the
ABCC Enterprise Agreement 2011-2014.
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