How many warnings do I need to give before terminating a hospitality employee?

There is no set number of warnings required by law. However, Fair Work expects a fair process which typically includes: an informal conversation about the issue, a formal first written warning with clear expectations, a second or final written warning if the issue continues, and a reasonable opportunity to improve at each stage. For serious misconduct (theft, violence, intoxication at work), you may terminate without prior warnings.

Can I fire a casual employee for poor performance without warnings?

Casual employees who have worked regular and systematic hours for less than 6 months (or 12 months for small businesses) can generally be terminated without the same unfair dismissal protections. However, you still cannot terminate for discriminatory or unlawful reasons. For long-term casuals working regular hours, it is best practice to follow a warning process to protect against general protections claims.

What should a formal warning letter include for a restaurant employee?

A formal warning should include: the specific performance issue or behaviour, concrete examples with dates and details, reference to any previous conversations about the issue, the expected standard of performance, what support will be provided, a clear timeframe for improvement, and the consequences if improvement doesn't occur (up to and including termination). The employee should be given the opportunity to respond.

How to Handle Underperformance in Hospitality: A Manager’s Guide

Published 22 February 2026 · By Fitz HR · 7 min read

A bartender who’s consistently late. A kitchen hand who isn’t meeting hygiene standards. A server getting repeated customer complaints. Every hospitality manager has dealt with underperformance, but most handle it poorly — either by ignoring it until it blows up, or by firing too quickly without process.

Both approaches create risk. Ignoring problems damages your team and service quality. Firing without a fair process exposes you to unfair dismissal claims worth $5,000–$50,000+.

Here’s the step-by-step process that protects you legally while giving your employee a fair chance to improve.

The 5-Step Performance Management Process

Informal Conversation

Before any formal action, have a private conversation. Name the specific issue, explain the expected standard, and ask if there’s anything affecting their performance (personal issues, inadequate training, unclear expectations).

Document it: Even though this is informal, make a note of the date, what was discussed, and what was agreed. A simple email to yourself works.

Timeframe: Give them 1–2 weeks to show improvement.

First Written Warning

If the issue continues after the informal conversation, issue a formal first written warning. This should be a proper document, not a text message or casual chat.

The warning must include:

The specific performance issue with concrete examples (dates, incidents)
Reference to the previous informal conversation
The expected standard of performance
What support or training will be provided
A reasonable timeframe for improvement (typically 2–4 weeks)
Consequences if improvement doesn’t occur

Important: Give the employee an opportunity to respond. They can bring a support person to any formal meeting.

Final Written Warning

If performance hasn’t improved after the first warning and review period, issue a final written warning. This follows the same format but explicitly states that termination may result if improvement doesn’t occur.

Timeframe: Another 2–4 weeks for improvement.

Performance Improvement Plan (PIP)

For complex or ongoing issues, a formal PIP provides structure. This sets specific, measurable targets, regular check-in dates, and a clear end date. A PIP typically runs for 4–8 weeks.

A PIP isn’t mandatory, but it demonstrates to Fair Work that you gave the employee every reasonable opportunity to improve.

Termination (If Necessary)

If performance hasn’t improved despite the process above, you can proceed with termination. By this point you should have a documented trail of conversations, warnings, support offered, and failed improvement.

Before terminating:

Conduct a final meeting and allow the employee to respond
Have a witness present
Provide the required notice period (or payment in lieu)
Process final pay including unused annual leave within 7 days

Serious Misconduct: When You Can Skip the Process

For serious misconduct, you may terminate immediately without prior warnings. In hospitality, this typically includes:

Theft or fraud (including stealing food, drinks, or cash)
Violence or threats of violence towards staff or customers
Attending work under the influence of drugs or alcohol
Serious safety breaches that endanger others
Willful damage to property
Serious insubordination

Even for serious misconduct, you must still conduct an investigation, give the employee a chance to respond to the allegations, and allow them to have a support person present. Skipping this step is the most common reason hospitality businesses lose unfair dismissal cases.

Common Mistakes Managers Make

No documentation: Verbal warnings with no written record are almost useless at Fair Work. If it’s not written down, it didn’t happen.
Vague feedback: “You need to improve your attitude” isn’t specific enough. Use concrete examples: “On 15 February, a customer complained that you were dismissive when they asked about the menu.”
Firing during probation without thinking: Probation doesn’t mean you can fire for any reason. Discriminatory and unlawful reasons still apply.
Not offering support: Fair Work expects you to offer reasonable support — additional training, clearer instructions, adjusted roster if personal circumstances are a factor.
Rushing the timeline: Giving someone 2 days to improve is unreasonable. 2–4 weeks per stage is standard.

Frequently Asked Questions

How many warnings before I can terminate?

There’s no fixed number required by law. Fair Work looks at whether the process was fair overall. Typically this means: an informal conversation, a first written warning, a final warning, and reasonable time to improve at each stage. For serious misconduct, you can skip warnings entirely (but must still investigate and let the employee respond).

Can I fire a casual for poor performance without warnings?

Short-term casuals (under 6 months, or 12 months for small businesses) generally don’t have unfair dismissal protections. But you still can’t terminate for discriminatory or unlawful reasons. For long-term regular casuals, follow the warning process to protect against general protections claims.

What should a formal warning letter include?

The specific issue with concrete examples and dates, reference to previous conversations, the expected standard, what support will be provided, a timeframe for improvement, and consequences if performance doesn’t improve. The employee should be given the chance to respond. Fitz HR can generate compliant warning letters in minutes.

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