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Employee Last Chance Agreement Template for Australia

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Key Requirements PROMPT example:

Employee Last Chance Agreement

"I need an Employee Last Chance Agreement for a sales representative who has consistently failed to meet quarterly targets and has received two prior warnings; the agreement should include specific performance metrics and a 3-month improvement period starting January 2025."

Document background
The Employee Last Chance Agreement is a critical document in Australian employment relations, typically implemented when standard performance management processes have not achieved desired outcomes but termination is not yet warranted. This agreement represents a final formal attempt to address serious performance issues or misconduct while maintaining procedural fairness under Australian employment law. It is designed to clearly communicate performance expectations, set measurable improvement targets, and outline specific consequences, including potential termination, if requirements are not met. The document must comply with the Fair Work Act 2009 and related employment legislation, ensuring both employer and employee rights are protected while providing a structured path for either performance improvement or a legally sound basis for termination if improvement is not achieved.
Suggested Sections

1. Parties: Identifies the employer and employee entering into the agreement

2. Background: Outlines the history of performance issues, previous warnings, and circumstances leading to this agreement

3. Definitions: Defines key terms used throughout the agreement

4. Acknowledgment of Issues: Employee's acknowledgment of the performance issues or misconduct that led to this agreement

5. Performance Requirements: Specific, measurable performance standards or behavioral changes required

6. Timeline: Duration of the agreement and specific deadlines for meeting requirements

7. Monitoring and Review: Process for monitoring compliance and conducting performance reviews

8. Consequences: Clear statement of consequences for failing to meet agreement terms, including potential termination

9. Support and Resources: Company's commitment to providing necessary support or resources

10. Acknowledgment of Understanding: Employee's confirmation of understanding and voluntary acceptance

11. Execution: Signature block and date for both parties

Optional Sections

1. Confidentiality: Required when the agreement contains sensitive information or when confidentiality is a specific concern

2. Medical Assessment: Include when performance issues may be health-related or require medical clearance

3. Training Requirements: When specific training or development programs are part of the improvement plan

4. Employee Assistance Program: When referral to EAP or counseling services is part of the support provided

5. Union Representation: Required when the employee is covered by a union agreement or has requested union involvement

6. Workplace Modifications: Include when reasonable adjustments to workplace or role are part of the solution

7. Previous Agreements: When this agreement supersedes or modifies previous performance improvement plans

Suggested Schedules

1. Performance Improvement Plan: Detailed plan with specific metrics, timelines, and success criteria

2. Previous Warnings: Copies of previous formal warnings or performance improvement notices

3. Position Description: Current role requirements and performance standards

4. Meeting Schedule: Timeline of check-ins and review meetings

5. Support Plan: Detailed outline of training, resources, or support to be provided

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
























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Relevant Industries

Healthcare

Manufacturing

Retail

Financial Services

Education

Mining

Construction

Information Technology

Hospitality

Professional Services

Transport and Logistics

Public Sector

Telecommunications

Relevant Teams

Human Resources

Legal

Operations

Sales

Customer Service

Production

Information Technology

Finance

Marketing

Administration

Engineering

Research and Development

Quality Assurance

Warehouse and Logistics

Relevant Roles

General Manager

Department Supervisor

Sales Representative

Customer Service Officer

Production Worker

Administrative Assistant

Technical Specialist

Project Manager

Account Manager

Operations Coordinator

Warehouse Worker

Software Developer

Financial Analyst

Teacher

Nurse

Engineer

Marketing Coordinator

Human Resources Officer

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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