In a case which involved Mr. Ramos and Good Samaritan Industries (GSI), Justice Barker has upheld Federal Magistrate Rolf Driver’s earlier verdict which held that reasonable performance management would not be considered as an adverse action.

1. Australian Federal Court Clarifies that Reasonable Performance Management is not “Adverse
Action”
(Sunnyvale, CA)- In a case which involved Mr. Ramos and Good Samaritan Industries (GSI), Justice Barker has
upheld Federal Magistrate Rolf Driver’s earlier verdict which held that reasonable performance management
would not be considered as an adverse action. The Federal Court’s verdict establishes certain principles which are
crucial for employers in Australia, says Nair & Co.’s International HR Consulting Team.
Ramos v Good Samaritan Industries Case: Background
In March 2010, Mr. Ramos who used to work with GSI as a store manager was criticized by his senior manager for
his offensive behaviour as well as on performance issues. The employee lodged a complaint against the manager
for the criticism.
In July, 2010, Mr. Ramos quit GSI and accused the company of taking adverse action against him for the complaint
he had lodged against his senior manager. Besides, he accused the company of workplace harassment and
constructive dismissal, and sought compensation for his past and future losses. However, GSI refuted the
allegations.
Analysis & Verdict (By Magistrate Rolf Driver)
After analyzing the employee’s adverse action claims and GIS’s remarks on each complaint, Rolf Driver concluded
that the employee’s allegations were baseless and could not prove any illegitimate adverse action from the
company.
The Federal Court’s Verdict
By upholding the Magistrate’s decision, the Federal Court of Australia held that:
 Reasonable performance management is not adverse action.
 Adverse actions, with a good intention, taken against an employee are lawful.
 Documenting performance management details based on an employee's poor performance is very crucial in
effectively defending any adverse action claim.
Important Lessons for Employers
Employers must understand the general protection provisions and the basic workplace rights under the Fair Work
Act. They must justify and document the reasons for taking action against employees in performance management
situations.

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