MANAGING UNDERPERFORMANCE or MISCONDUCT POLICY

POLICY STATEMENT
ROHA acknowledges that effective policies and procedures for managing employee
underperformance and/or misconduct are essential to maintain performance, integrity and
ethical values for employees continuously throughout their employment.

PURPOSE or OBJECTIVE
The purpose of the policy is to set out prompt, fair, consistent and constructive procedures
for handling employee underperformance and misconduct (disciplinary procedures).

APPLICATION & SCOPE

This policy applies to all employees, including casual/temporary labour hire employees,
contractor and individuals who conduct work on behalf of ROHA.

REQUIREMENTS

1. Introduction

The management of underperformance and/or misconduct must be prompt, fair, consistent

and done in a constructive manner.
This requires that a minimum standard of conduct and performance is agreed, set and
communicated with all employees in advance and on an on-going basis. This is done via
proper job descriptions and follow up discussions with employees following both good and
underperformance.
Prior to making any decision to issue written warnings, suspend, demote or dismiss an
employee, he or she must be afforded procedural fairness by being provided with an
opportunity to respond to allegations regarding their behaviour, work performance and/or
conduct and to offer explanations or reasons for the alleged performance or conduct.
Line managers/supervisors and other management representatives must be objective at all
times. It must never be assumed that certain action in relation to an employee is a foregone
conclusion. All managers/supervisors, in taking action under this policy, must be familiar
with their obligations relating to discrimination, as covered by both State and Federal
legislation and as outlined in the Company ‘Equal Opportunity, Anti-Discrimination,
Harassment and Workplace Bullying Policy’.
2. Procedure
The following procedure is applicable to instances of employee underperformance or
misconduct. However as each case is treated on its merits, each stage of the process may
vary depending on the circumstances associated with each situation.

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Prior to undertaking a formal performance management/disciplinary procedure, managers
must consult with the General Manager. If in doubt how to best handle a situation, ask for
help from senior management.

2.1 Informal Stage - Counselling / Verbal Warning

This usually consists of an informal discussion between the employee and their Line
Manager/Supervisor to discuss underperformance, misconduct or other work-related issues.
The aim of the discussion is to communicate the Line Manager’s/Supervisor’s concerns,
provide an opportunity for the employee to respond and to determine a mutually agreed plan
of action.
Counselling / Verbal warnings should:
• Clearly set out the concerns
• Make it clear that improvement is required
• Agree upon measures to address the underperformance or misconduct. This may
include time frames for improvement and courses of professional development or
other program(s) as deemed appropriate
• Make clear, what the measure of improvement will be
• Make it clear that, in the absence of improvement, the employee's employment may
be in jeopardy
• Set a clear review date for the review of the employee’s subsequent performance or
conduct
Where the required improvement has occurred by the review date, no further action is
necessary.
At a minimum, and definite requirement, managers/supervisors should keep a diary record
of any counselling/verbal warnings issued to employees.

2.2 Formal Stage - First Written Warning

A first written warning may be appropriate in the following circumstances:
• Where counselling is not considered appropriate (e.g.: Misconduct sufficiently
serious that it is appropriate to initiate the disciplinary procedure at the 'written
warning' stage)
• Where counselling / verbal warnings have not resolved a matter

The following procedures apply prior to the issue of a first written warning:
• A meeting must be held where the Line Manager/Supervisor outlines the issues and
the employee is given an opportunity to respond to the allegations of
Underperformance or Misconduct. The employee is entitled to have a support person
present at the meeting (e.g. a union official, family member or friend) and should be
offered this entitlement when setting the meeting time

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 • The Line Manager/Supervisor must have another member of management attend
as a witness for management.
• At the meeting:
o The Line Manager/Supervisor is to advise the employee that the purpose of
the meeting is to decide if a formal first written warning should be issued
o The Line Manager/Supervisor must explain the underperformance or
misconduct concerns and identify specific problem areas. A time frame for
review of improved performance or conduct must be established
o The employee must be given the opportunity to explain any relevant reasons
contributing to poor performance or relevant to the allegations of misconduct
• After the meeting:
o The Line Manager/Supervisor is to consider the employee’s response (in
conjunction with the General Manager, if applicable) and determine if a first
written warning is appropriate
o Disciplinary action ceases if management considers the employee’s response
to be a reasonable one
• If it is decided to issue a first written warning, the warning must:
o Clearly define the deficiency, the expected standard, by when it should be
achieved, how the company will help the employee achieve the improvement
required and the time frame for doing so
o Set out the consequences of continued under performance or misconduct.
The warning must clearly state that, in the absence of improvement, the
employee’s employment may be at risk
• All details of the warning should be noted with time and location of meeting, dated,
signed by all parties, including witnesses, and filed
• The employee is to be given a copy of the warning, irrespective of whether they have
opted to sign the document

2.3 Formal Stage - Final Written Warning

If an employee’s conduct/performance does not improve after a first written warning, a final
written warning may be issued.
The following procedures apply prior to the issue of a final written warning:
• A meeting must be held where the Line Manager/Supervisor outlines the issues and
the employee is given an opportunity to respond to the allegations of
underperformance or misconduct and failure to improve. The employee is entitled to
have a support person present at the meeting (e.g. a union official, family member,
friend)
• The Line Manager/Supervisor must have another member of management attend
as a witness for management
• At the meeting:
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 o The employee should be reminded of the proceedings that have already taken
place
o The Line Manager/Supervisor is to advise the employee that the purpose of
the meeting is to decide if a formal final written warning should be issued
o The Line Manager/Supervisor is to explain the underperformance or
misconduct concerns identifying specific problem areas and failure to improve.
A time frame for review of improved performance or conduct should be
established
o The employee must be given the opportunity to explain any relevant reasons
contributing to the poor performance or relevant to the allegations of
misconduct and/or failure to improve
• After the meeting:
o The Line Manager/Supervisor is to consider the employee’s response (in
conjunction with the General Manager, if applicable) and determine if a final
written warning is appropriate.
o Disciplinary action ceases if management considers the employee’s response
to be a reasonable one
• If it is decided to issue a final written warning, the warning must:
o Clearly define the deficiency, the expected standard, by when it should be
achieved, how the company will help the employee achieve the improvement
required and the time frame for doing so
o Set out the consequences of the employees’ performance or conduct failing to
improve. The warning must clearly state that, in the absence of improvement,
the employee’s employment may be terminated
• All details of the warning should be noted with time and location of meeting, dated,
signed by all parties, including witnesses, and filed
• The employee is to be given a copy of the warning, irrespective of whether they have
opted to sign the document

2.4 Formal Stage - First and Final Written Warning

Depending on the individual circumstances and in situations which are deemed sufficiently
serious, following a thorough investigation (as outlined above), the Company may move
directly to issuing a first and final written warning to an employee.

3. Formal Stage - Demotion, Suspension or Termination

Where the above procedures have been undertaken without producing the required
improvement in performance or conduct, then the Line Manager/Supervisor must consult
with the General Manager to discuss the final stage; either demotion or termination of
employment.
3.1 Demotion

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Demotion may occur either voluntarily or involuntarily; in cases of poor performance,
demotion usually involves the involuntary acceptance of lesser job responsibilities, status,
and/or a reduction in wages or salary.
Demotion may be an appropriate alternative to termination of employment where the
employee concerned has a positive attitude and has made every effort to improve the
performance/conduct in question without success.
As with every other step of the process, if an employee is demoted, detailed records must
be kept.
The General Manager, or the employee’s manager, must advise the employee in writing of
the decision to demote.
An employee who is demoted must be provided with a new employment contract, outlining
the terms and conditions associated with the demotion, in a timely manner.

3.2 Suspension
If a Line Manager/Supervisor considers an allegation to be serious, and it requires further
investigation, an employee may be suspended on base pay for a maximum of two weeks
while an investigation takes place. The relevant individual must be informed of this action.
Suspension (with pay) may occur if it is alleged that an employee has engaged in an act of
serious misconduct and the management would prefer the employee to be away from the
workplace during investigation. The General Manager must approve before any action in
this circumstance is taken.

3.3 Termination
If it is deemed that the employee’s employment relationship with the ROHA can no longer
be supported, then the Line Manager/Supervisor, in consultation with the General Manager,
may take action to terminate employment.
Before considering termination of employment, the employee should be invited to a “show
cause” meeting where they will have the opportunity to explain why they think their
employment should not be terminated. They are permitted to bring a support person should
they wish. After the “show cause” meeting the Line Manager/Supervisor and the General
Manager will then make a final decision based on the responses given.
Disciplinary action ceases if management considers the employee’s response to be a
reasonable one.
In the event of termination, the General Manager, or the employee’s manager, must provide
a formal notice of termination and an estimate of their cessation payment; including
entitlements to notice and other benefits/entitlements.
Prior to a final decision on termination, the following must be satisfied:
• All possible corrective action, including training and coaching has been undertaken
• The Line Manager/Supervisor concerned has documentation showing the
conversations/meetings with the employee that have taken place, agreed action
plans, and written and other warnings (if any)

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 • In the case of underperformance, the employee has been:
o Informed of the standards required and his/her performance deficiency(ies)
o Provided with action plans in writing on at least two occasions
o Informed in writing on at least two occasions of the consequences of failing
to meet the required standards
• The employee has been given the opportunity to respond to the issues highlighted

4. Summary Dismissal
In cases where the circumstances are sufficiently serious, the ROHA Group may initiate the
disciplinary procedure at the 'final written warning' stage or the 'termination' stage. Whilst
giving notice is normal procedure, termination may be effected without notice if the employee
is guilty of Serious Misconduct.
Management must consult with Human Resources and Senior Management before taking
action with regard to Serious Misconduct. In such cases, the following procedures apply:
• Investigate the alleged offence thoroughly, including talking to witnesses, if any
• Ask the employee for his/her response to the allegation (taking notes of this
discussion)
• Consult with the next most senior manager regarding possible action
• If still appropriate, following a thorough investigation, terminate/dismiss the
employee
• Keep a file on all evidence collected and action taken in these circumstances
Acts of Serious Misconduct involving criminality may be reported to the police for
investigation. Some examples of serious misconduct are noted in the definitions section of
this Policy.

5. Record Keeping
As noted above, Line Manager/Supervisors are required to make notes of all counselling /
verbal and written warnings. Should it be determined that the employee’s conduct may be
likely to lead to disciplinary action, a diary must be kept at all times to record incidents and
conversations and associated matters which may be needed in any subsequent
proceedings.

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6. Definition

Terminology Definition

Misconduct The term misconduct is a broad term that covers a variety of acts or
omissions by an employee. The types of conduct, which constitute
misconduct depend on the facts and circumstances of each case.
Some examples include:
• Any breach of the company’s code of conduct or policies
• Attitudes, behaviour or language which are uncooperative or
counterproductive to work efforts
• Poor timekeeping (evidenced over a period of time)
• Regular absenteeism without reasonable cause
• Temporary absence from place of work without authority
• Failure to advise supervisor of completion of job or delays

Serious Misconduct Serious Misconduct is deliberate action clearly inconsistent with the
continuation of the contract of employment. This may include (but is not
limited to):
• Theft
• Fraud
• Assault
• Misappropriation of funds
• Serious breach of safety rules
• Serious cases of harassment, sexual harassment, discrimination,
bullying etc.
• Abusing or threatening another employee
• Malicious damage to ROHA property
• Wilful disobedience of a lawful and reasonable instructions given
by a supervisor
• Consuming alcohol or any type of drug medication not prescribed
by a doctor or dentist (other than throat lozenges, mild painkillers,
etc) during work time
• Abandonment of employment for a continued period of three (3)
days without the consent of the employer or notification to the
employer
Serious Misconduct may include misconduct that is a combination of a
number of documented incidents of misconduct, a single offence
frequently repeated or a single serious incident.

Underperformance Underperformance is when an employee has not achieved the

performance requirements as outlined in their Job Description.
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