HR Consultant insights for a balanced and legally sound approach
Dismissing an employee for underperformance is often a gradual process, made more complex when mental health challenges are involved…
Dismissing an employee for underperformance is rarely a sudden decision. It usually follows a prolonged period of unmet expectations, feedback, and formal performance discussions. When mental health challenges are also present—whether disclosed or not—the process becomes significantly more sensitive and complex.
Employers must balance the need to maintain performance standards with a responsibility to manage the situation fairly and sensitively. Mental health concerns do not remove performance expectations, but they do call for a more thoughtful and legally informed approach.
As Lauren Brouwer-French, Senior Associate at Harmers Workplace Lawyers, explains:
“There are disability discrimination risks, general protections risks, and, of course, unfair dismissal risks—just to name a few. So the processes really do need to be managed carefully and sensitively.”
Clear documentation, consistent communication, and reasonable adjustments—where appropriate—are essential. These steps not only help mitigate legal risks but also demonstrate responsible and ethical management practices.
This need is reinforced by growing trends. Safe Work Australia reports that psychological injuries made up 11% of serious workers’ compensation claims in 2022–23, and courts are increasingly recognising psychological harm in employment-related decisions.
At Envisage HR Solutions, our HR Consultants support organisations in developing performance management frameworks that are both compliant and compassionate. Whether addressing individual or complex cases, or strengthening your broader performance processes, our experienced team provides practical, tailored advice to help you achieve a fair and sustainable outcome.
Need help navigating performance issues that are fair and legally sound?
Get in touch with an Envisage HR Consultant today to manage complex cases involving mental health and underperformance.