1 . WEEKLY INSIGHT
THE PIP PUSHBACK – THE STALLED ENGINE EMPLOYEE REFUSES TO REV UP THEIR PERFORMANCE
Recent FWC Case – Employee defies directions to improve. Employer sends letter imposing a 1-month performance improvement plan (PIP) in Feb 2024.
The PIP ordered the employee to:
- Participate in online work meetings
- Return to the office order on Tuesdays and Wednesdays over the 4-week period.
The employee was informed failure to comply with the PIP would result in termination.
Medical exemption (with a medical certificate supplied no later than March 2024) was a written & permissible reason for the employee’s non-compliance with the PIP.
Employee rejects the PIP then labels it as “unnecessary & unlawful.”
Raises OH&S concerns claiming it is ‘psychologically unsafe’ – akin to mental health concerns.
Employee accuses employer of micromanagement, gaslighting and victimisation & continued to resist the PIP.
By 27 March 2014, the employee failed to comply with above – orders 1&2 of the PIP and their employment was terminated. Employer supplied employee with 4 weeks of pay (akin to payment in lieu) – even though not legally required. Then the employee filed for Unfair Dismissal to the FWC.
FWC applied criteria 387 of the FWA (2009) and determined the dismissal was fair and reiterated the employers’ actions were not unreasonable, harsh nor unjust. Based on the following
- Employee did not supply medical certificate by specified deadline.
- Employees actions constitute as serious misconduct as it was a breach of a fundamental term of their employment.
2. HR/IR & LEADERSHIP
WORKING LESS, EARNING MORE, THE GREAT AUSSIE WORK SLOWDOWN, IS THERE A LIGHT AT THE END OF THE TUNNEL?
The FWC case above sheds light on Australia’s Productivity Crisis.
GDP per hour worked has fallen from its highest at the end of 2022 and remains at the same levels recorded at the end of 2019.
What is contributing to Australia’s sluggish productivity? (KPMG Production Report June 2024).
- Labour Market is Tight
- The labour demand and supply composition effect are responsible for a 1.5% fall in measured labour productivity.
- Low efficiency in Skill-Matching
- High volume of low-skilled vaccines in Food/Retail Industries while high-skilled industries like Healthcare or Construction experience excess demand.
- Overseas Immigration
- Need for of high-skilled and education migrants to drive innovation (new skills/ideas).
- Labour Hoarding
- Australian organisations employ more employees than they need to sustain their operations.
- Australia’s Over Regulated Labour Market
- Overhaul of legalities and too much focus on procedural fairness and inconsistent arbitration.
Additional Key Statistics from Quarterly Productivity Bulletin (Australian Government June 2024).
- Since historical highs in June 2023, total hours worked has fallen by 1%.
- The number of people employed increased by 1.7%, but workers now work 51 minutes (2.7%) less per week on average.
- Labour productivity did not change for the whole economy in the March 2024 quarter.
- An equal increase in hours worked (0.1%) and output (0.1%) meant that labour productivity growth was 0%.
- Read or download the full Bulletin:
3. TEAM DIARY
BREAK THE AUSSIE SLUMP: THE POWER OF REGULAR 1 ON 1’S TO UNLOCK LASTING PERFORMANCE
Feeling like you’re walking a tightrope with performance reviews? In Australia, where employe’s performance is lower than ideal, striking the right balance between encouragement and correction is crucial.
This can be difficult even for in-house HR teams. But done right, performance reviews are more than just a yearly paperwork shuffle. They’re a chance to unlock employees’ potential… because every employee has a ‘superpower.’
Is your team stuck in a rut? Stagnant performance and limited engagement holding you back? Let the team at marvinHR revolutionise your workforce. We believe in the power of 1o1s, and we think these should be done weekly.
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4. THIS WEEK’S TOP 4 READS
