AU Performance Management Program — Small Business

01 — WHAT

What is it?

The Performance Management Program — AUS Small is a ready-to-implement performance management system designed specifically for Australian small businesses with fewer than 15 staff. It gives business owners a structured, documented way to set expectations, conduct formal reviews, manage underperformance, issue lawful warnings, and make employment decisions — without paying a lawyer or HR consultant for every conversation.
It includes the policies, procedures, forms, registers, and guides needed to manage performance in full compliance with the Fair Work Act 2009 (Cth) — including the formal warnings framework required under s.387(e) before any performance dismissal.

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02 — WHO

Who is it for?

• Business owners managing staff performance without an HR team
• Small businesses with fewer than 15 staff navigating the 12-month Minimum Employment Period
• Owners who need to manage underperformance or issue a formal warning correctly
• Businesses that have never had a documented performance system
• Any AU small business that wants to be Fair Work ready before a problem arises
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03 — WHY

Why does it matter?

In Australia, the Fair Work Act 2009 (Cth) sets out exactly what a fair performance management process looks like — and the Fair Work Commission will assess whether you followed it if an employee makes a claim. As a small business employer with fewer than 15 staff, your Minimum Employment Period is 12 months. But general protections under Part 3-1 apply from Day 1 of employment, with a reversed burden of proof.

Relevant obligations include:

• Fair Work Act 2009 (Cth) — unfair dismissal (ss.385–387), general protections (Part 3-1), NES
• Small Business Fair Dismissal Code — applies to all employers with fewer than 15 staff
• Privacy Act 1988 (Cth) — Australian Privacy Principles govern all performance records
• Work Health and Safety Act 2011 (Cth) — performance management done poorly is a psychosocial hazard
• Equal opportunity legislation — federal and state/territory anti-discrimination law

Without a documented performance program, businesses risk:

• Unfair dismissal claims — particularly where no written warning was issued before dismissal
• General protections claims from Day 1 — with reversed burden of proof and no MEP requirement
• Discrimination complaints where performance decisions lack documented, objective evidence
• Costly legal proceedings that could have been avoided with the right documentation
• WHS liability where performance processes cause psychological harm
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04 — WHEN

When do you need it?

• Before conducting your first formal performance review
• Before issuing any formal warning to a staff member
• Before initiating a Performance Improvement Plan
• When an employee is not meeting expectations and you need a documented process
• When a probationary employee is approaching their MEP end date
• Whenever you may need to make an employment decision based on performance
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05 — WHERE

Where does it apply?

• Formal performance reviews — annual, mid-year, and probationary
• Underperformance management — from informal conversation to formal warning to PIP
• Formal warnings — issued correctly under s.387(e) with the right documentation
• Probation management — aligned to the 12-month MEP for small business employers
• Employment decisions — supported by the Small Business Fair Dismissal Code checklist
• All staff conversations where performance, conduct, or expectations are discussed
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06 — HOW

How does it work?

• Set clear KPIs and expectations from Day 1 — documented in the KPI Tracking Form
• Conduct regular check-ins and document every performance conversation as it happens
• Conduct formal annual reviews using the structured review form and process
• Check modern award coverage using the Fair Work Ombudsman's PACT tool — guided in the program
• Issue formal warnings correctly — owner-approved, in writing, entered in the Warnings Register within 24 hours
• Manage underperformance through the four-stage process aligned to the Fair Work Act
• Run a PIP with structured goals, support, milestones, and a documented outcome
• Make employment decisions supported by the Fair Work & General Protections Guide and pre-dismissal checklist
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07 — INCLUDED

What is included?

• 1.0 Product Document Index
• 1.1 Welcome Pack
• 1.2 Quick Start Guide — includes modern award check
• 1.3 30-Day Implementation Roadmap
• 1.4 Programme Navigation Guide
• 2.1 Executive Summary
• 3.1 Performance Management Policy
• 3.2 Performance Review Policy
• 3.3 KPI & Goals Policy
• 3.4 Underperformance Policy
• 3.5 Probation Management Policy
• 3.6 Document Review & Update Policy
• 3.7 Warnings Policy
• 4.1 Performance Review Procedure
• 4.2 Underperformance Management Procedure
• 4.3 Performance Improvement Plan Procedure
• 4.4 Warnings Procedure
• 5.1 Performance Review Form
• 5.2 KPI Tracking Form
• 5.3 Performance Improvement Plan Template
• 5.4 Manager Performance Conversation Record
• 5.5 Probation Review Form
• 5.6 Formal Warning Record
• 6.1 Performance Review Register
• 6.2 PIP Register
• 6.3 Action Plan Register
• 6.4 Version Control Register
• 6.5 Formal Warnings Register
• 7.1 Owner & Manager Performance Guide
• 7.2 Annual Review Guide
• 7.3 Monthly Review Checklist
• 7.4 New Starter Guide
• 7.5 Fair Work & General Protections Guide
• 8.1 Staff Training Guide
• 8.2 Staff Self-Assessment Guide