FWC reminder: Effective Performance Management is about active clarity not cowardice!

FWC recently (Angela Paladino v The University of Melbourne [2026] FWC 559 (23 February 2026) showed reinstatement orders are still very much ‘on the table’ and provided a clear reminder on how to conduct effective performance management by reinstating an employee of 27 years service who received an "exceeds expectations" score shortly before she was dismissed because of complaints about her conduct from other employees.

The evidence that unfolded during proceedings showed that the employee’s supervisor had held concerns about her management style for some time – but had done ‘nothing’ about it and now regretted not doing so. FWC said this approach “smacks of managerial cowardice” and found that, despite an internal investigation’s finding that the employee’s behaviour collectively amounted to serious misconduct, there was no valid reason and that the dismissal was disproportionate to the established conduct.

Our Take

We love this decision!

If you are a people leader read this decision in full and keep it as a handy reference guide to effectively managing performance.

We think Brene Brown would be giving this decision a standing ovation for the clear legal application of her “Clear is Kind. Unclear is Unkind” mantra.

We also think it endorses what we have long held as a core value ie. Results with Respect is effective performance management.

Action Points

• Train your managers how to deliver effective one on one meetings and provide feedback – this is still our ‘go to’ for almost every ongoing workplace dispute we see between a manager and their direct report and the most effective way of establishing and maintaining performance/ behavioural expectations.

• Train your employees what they can reasonably expect from their managers - so that they understand that not getting what they want or feeling uncomfortable is not the same as bullying.

• Provide guidance to management - (ie giving real examples) regarding the differences between reasonable and unreasonable conduct/ performance. Don’t fall into the trap of placating an employee with inconsistent ratings because it is easier than having a difficult conversation.

• Document support measures and decisions - keep records performance management steps and stand by them. Uncomfortable and difficult are not the same as psychosocially unsafe. Don’t let striving for perfection in record keeping prevent you from having credible evidence of having acted. A ‘scrappy’ diary note, email, voice memo etc is better than ‘a perfect letter’ thought of but never delivered!

• Manage performance expectations firmly but fairly - set clear expectations around performance expectations regularly and consistently.

Edge Legal

Relationships. Respect. Results