This article is in relation to a recent appeal decision in Khan v Workers’ Compensation Regulator [2023] ICQ 002.
Employers engaging in performance management of employees, should pay close attention to this decision, it discusses what is reasonable management action in a reasonable manner.
Reasonable management action, in a reasonable manner is a common test with the different jurisdictions across Australia in relation to workers compensation claims in relation to stress.
This decision favoured the Employer, it held that the employer had reasonably instigated a performance management plan and process, the employer had a valid reason to do so and had followed a reasonable process in the implementation of this plan.
This decision is a positive outcome for employers, critically in the current space, as see an ever-increasing number of claims for stress being made and employers left helpless when it comes to the management of underperforming employees.
This decision went right to the heart of process, it discussed how critical the employer’s policy was, specifically that it needs to deal with performance management, and importantly it discussed the level of performance of the employee during the period, in other words, how critical it is to measure performance.
In addition, this decision expanded the process requirements by stating the importance of managers and supervisors effectively monitoring employee performance and discussing performance concerns with employees as early as possible.
What is clear is the requirement that employers have a written documented process for performance management, that it includes the method of measuring the employee performance and can distinguish between the level of performance and the required level of performance. In addition, consultation and time is required.
If you would like to discuss these changes or have general questions regarding employment law, please do not hesitate to contact us.
Salt Legal is an Employment Law Firm based in Melbourne. We provide legal advice and representation to businesses across all sectors and industries in all areas of employment law, OHS and workers compensation.
Disclaimer: This is for general information only and does not constitute legal advice.