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Step-by-Step Process: Managing Poor Performance to Final Dismissal

Effective performance management is essential for building a high-performing, motivated workforce. When employees underperform, it's important that businesses take structured, fair, and legally compliant steps to support improvement while protecting the organisation's integrity.


This document outlines the legally recommended process under the South African Labour Relations Act (LRA) for addressing and managing poor performance in the workplace. It ensures that employees are given a fair opportunity to improve and that any disciplinary actions taken are procedurally correct and justifiable.


At the heart of a successful performance process are clearly defined Key Performance Areas (KPAs). When employees sign and commit to their KPA documents, it creates a transparent foundation of expectations. This clarity forms the benchmark for identifying underperformance and ensures that all feedback or disciplinary action is linked to agreed-upon responsibilities. Having the KPA framework in place from the beginning streamlines the process and gives both the employee and employer a reference point for fair and constructive performance discussions.


Whether you're dealing with repeated non-performance or addressing performance issues during a probation period, following this process helps maintain transparency, fairness, and compliance with labour legislation.


1. Identify the Performance Problem


  • Clearly define how the employee is not meeting expected standards.

  • Ensure the performance standards were reasonable, clear, and communicated upfront.


2. Counselling or Informal Discussion


  • Begin with a non-disciplinary counselling session.

  • Explain the concerns, and give the employee a chance to explain or raise obstacles.

  • Explore support options like training, coaching, or clearer goal-setting.


3. Develop a Performance Improvement Plan (PIP)


  • Set clear, measurable targets, a reasonable time frame (typically 1–3 months), and check-in points.

  • Offer support: supervision, tools, training.

  • Document everything.


4. Monitor & Review


  • Hold regular review meetings during the PIP period.

  • Provide feedback and track progress.

  • Document all interactions and improvements or continued failures.


5. Issue Formal Warnings (If No Improvement)


  • If performance does not improve, begin issuing progressive warnings:

    • Verbal warning (documented)

    • Written warning

    • Final written warning

  • Ensure each warning explains what the issue is, what improvement is required, and what the consequences are.


6. Hold a Poor Performance Hearing


  • If performance still doesn't improve, schedule a disciplinary hearing.

  • Provide the employee with:

    • Written notice

    • Details of the performance issues

    • Opportunity to bring a representative

  • The hearing must be fair and objective.


7. Dismissal (If Justified)


  • If it's proven that:

    • The employee was aware of the required standards

    • They were given fair opportunity to improve

    • Warnings were issued

    • The poor performance is ongoing


➡️ Dismissal may be fair.


  • Give the employee a written dismissal notice with reasons.

  • Inform them of their right to refer the matter to the CCMA.


✅ Additional Notes:


  • Probationary Employees: They can be dismissed for poor performance more easily, but still require counselling and a chance to improve.

  • Senior Employees: Held to a higher standard, but same process applies.

  • Disability or Medical Issues: If performance is affected by health, handle it under incapacity – ill health, not performance.


⚖️ Relevant Legislation:


  • Labour Relations Act (LRA), Schedule 8 – Code of Good Practice: Dismissal

  • Basic Conditions of Employment Act (BCEA)


Addressing poor performance is not about punishment—it’s about enabling improvement, upholding team standards, and protecting company productivity. By applying this structured approach, businesses can avoid unnecessary conflict and legal risks while offering employees the chance to succeed.


A fair, well-documented performance management process builds trust, drives accountability, and creates a workplace where expectations are clear and excellence is supported. Always consult with HR or legal experts when in doubt to ensure alignment with South African labour law.

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