An employee warning letter helps you explain a problem with behaviour or performance, set out what needs to change and give your staff member a fair chance to improve. For business owners in Australia, it also creates a written record of the problem, the conversation you had and the steps the employee needs to take.
Many owners think they must give three warnings before they can dismiss someone. That is a myth, and believing it can lead to costly mistakes in both directions: some owners wait far too long to act, while others send three rushed letters and assume the dismissal is now safe. The letter matters, but so does the fair process behind it.
This guide explains when to use a warning letter, what the Fair Work Act 2009 actually says, how verbal and written warnings differ, and gives you a free employee warning letter template and a final warning example you can copy. The legal information is current as at 15 October 2026.
For a small or first-time issue, talk privately first. Listen to their side, as they may need clearer instructions, training or support with something happening outside work.
If nothing improves, put it in writing. You might give a warning letter when someone keeps arriving late, misses deadlines, ignores reasonable rules or behaves badly towards customers or colleagues. The Fair Work Ombudsman recommends setting clear expectations, giving feedback and keeping written records of performance discussions.
A warning letter generally fits issues that are real and repeated but not so serious that the employment relationship cannot continue. Common examples include:
If the conduct may be serious misconduct, such as theft, fraud, assault or a serious safety breach, a warning letter may not be the right tool. You may need to investigate first, and in some cases stand the employee down on pay while you do. See the serious misconduct section below.
Australian law does not set out a formal system of verbal and written warnings. They are workplace practices, and your award, enterprise agreement, contract or policy may describe its own steps. In practice:
For small businesses, the Small Business Fair Dismissal Code says that, outside of serious misconduct, the employee must be told why they are at risk of being dismissed and warned "verbally or preferably in writing" that they risk dismissal if there is no improvement. So a verbal warning can count, but a written one is the safer option because it leaves no doubt about what was said.
There is no single employee warning letter that fits every situation. A fair warning should be specific, fact-based and reasonable. A good letter should:
For example, a letter about lateness can list the dates they were late, how late they were, what they said and the start time you expect.
A warning letter should be written after you have met with the employee, not before. If the letter is drafted, signed and printed before the meeting starts, it suggests the outcome was decided before you heard their side. Prepare notes in advance, but finalise the letter afterwards.
Copy this template and change the details in square brackets to suit your situation.
[Business name]
Date: [date]
Private and confidential
To: [employee name], [position]
Subject: Written warning about [issue]
Dear [employee name],
We are writing to confirm our meeting on [date] about [specific performance or conduct concern]. The concern relates to [describe the incident or pattern, including relevant dates and facts]. This relates to our [policy name or clause in your employment contract].
[Optional: You attended the meeting with [support person's name] as your support person.]
At the meeting, you explained that [summarise the employee's response fairly]. We have considered your response before making this decision.
The standard we expect is [describe the expected behaviour or performance]. From now on, please [set out specific actions]. To help you, we will provide [training, guidance or other reasonable support, if applicable]. We will meet on [date] to review your progress.
This letter is a [first/second/final] written warning. [Optional, for a second or final warning: This follows an earlier written warning dated [date].] If the issue continues, further disciplinary action may follow, which could include ending your employment. Any next step will depend on the circumstances.
[Optional: If you would like support, you can contact our Employee Assistance Program on [phone number].]
Please tell us by [date] if you believe any detail in this letter is inaccurate or if you have more information for us to consider.
Kind regards,
[Signature]
[Manager name]
[Position]
Acknowledgement of receipt (optional)
My signature confirms I received this letter, not that I agree with it.
Employee name: __________________
Employee signature: __________________ Date: __________
Note for employers (do not include in the letter): Keep the letter and supporting records securely. For serious or disputed issues, get advice from an HR or employment law professional before sending it.
A final warning should only be used after earlier warnings have not worked, or where a single incident is serious enough to put the job at risk but not serious enough to justify dismissal on the spot. The wording needs to be unmistakable. Here is an example of the key paragraphs, which you can drop into the template above.
Subject: Final written warning about attendance
We met on [date] to discuss your attendance. Since your first written warning dated [date], you have started work late on [number] occasions, on [list dates], without notifying your manager in line with our Attendance Policy. You told us that [summarise the employee's response]. We have considered this, including [any steps taken, such as the roster change we agreed to on [date]].
This is a final written warning. From [date], you must start work at [time] each rostered day and, if you will be late, call [manager name] before your shift starts. We will review your attendance on [date].
If there is a further breach of the Attendance Policy, we may decide to end your employment. Before any decision is made, you will be given the chance to respond.
Notice that the example lists specific dates, refers to the earlier warning, records the employee's side and keeps the promise of a further chance to respond. That last point matters, because the Fair Work Commission looks at whether the employee was given an opportunity to respond to the reason for dismissal, not just to the warning.
The Fair Work Ombudsman also publishes free first and final warning letter templates if you want an official starting point.
There is no law in Australia that says you must give three warnings, or even one, before dismissing an employee. What matters is whether the dismissal is fair in the circumstances. If a dismissed employee makes an unfair dismissal claim, section 387 of the Fair Work Act 2009 lists what the Fair Work Commission must consider when deciding whether the dismissal was harsh, unjust or unreasonable:
Warnings are only specifically mentioned for unsatisfactory performance. For conduct issues, warnings are not a listed criterion, but a history of fair warnings usually helps show the employee knew the standard and had a chance to fix the problem. Check your own policies, contracts and any enterprise agreement too, as some set out a warning process you have promised to follow.
Serious misconduct may justify dismissal without notice. Regulation 1.07 of the Fair Work Regulations 2009 defines serious misconduct to include wilful or deliberate behaviour that is inconsistent with the continuation of the employment contract, and conduct that causes serious and imminent risk to the health or safety of a person or to the reputation, viability or profitability of the business. It also lists examples, including theft, fraud, assault, sexual harassment, being intoxicated at work and refusing to carry out a lawful and reasonable instruction that is consistent with the employment contract.
But calling something "serious misconduct" does not make a dismissal fair, even if you have already sent a warning. You still need to check the facts, tell the employee what you are considering and give them a genuine chance to respond. Read our guide to serious misconduct and get advice before you act.
Small businesses have different rules under the Fair Work Act:
For dismissals that are not for serious misconduct, the Code expects you to give the employee a reason why they are at risk of dismissal, warn them (verbally or preferably in writing) that they risk dismissal if there is no improvement, give them an opportunity to respond to the warning and a reasonable chance to fix the problem, which may include extra training and clear expectations. The employee can have another person present in discussions where dismissal is possible, but under the Code that person cannot be a lawyer acting in a professional capacity.
Two other limits are worth knowing. An employee who earns at or above the high income threshold, and who is not covered by a modern award or enterprise agreement, cannot claim unfair dismissal. From 1 July 2026 the threshold is $190,100 a year, according to the Fair Work Commission. An unfair dismissal application must also be lodged within 21 days after the dismissal takes effect. These limits apply to unfair dismissal only. General protections claims, such as a claim that someone was warned or dismissed because they made a complaint or took sick leave, have different rules and no minimum employment period.
An employee does not have to sign a warning letter, and refusing to sign does not stop the warning from taking effect. The signature only confirms they received it. If they refuse:
If a dismissal is later challenged, your records are your evidence. Keep a file for each issue with:
Store records securely and limit access to the people who need them. Employers must keep certain employee records, such as time and wages records, for 7 years under the Fair Work Act. Warning letters are not specifically on that list, but keeping them at least as long is a sensible approach, since disputes can surface well after the event.
One small error will not automatically ruin an employee warning letter. But a poor process or weak records can hurt your case if it ends up at the Fair Work Commission. Avoid these mistakes:
An employee warning letter cannot fix an unfair process on its own. Read the Fair Work Ombudsman's unfair dismissal guidance and our guide to ending employment before taking that step.
Here is how a fair process might look for a hypothetical café with 9 employees, which makes it a small business under the Fair Work Act.
The process is not about the number of letters. It shows the employee knew the problem, had support and a fair chance to fix it, and was heard before any decision.
Before you send the letter, make sure you have:
If dismissal is a possibility, get advice from an HR or employment law professional first.
If your business needs help setting up fair and consistent people processes, explore our outsourced HR services or read our guide to HR support for Australian businesses.
What is an employee warning letter?
An employee warning letter is a written notice that tells a staff member about a problem with their behaviour or performance. It usually explains what happened, what needs to change, how you will support them and what could happen if things do not improve.
What is the difference between a first, second and final warning?
Each warning is a step up. A first warning records the problem, a second shows it has continued, and a final warning makes clear dismissal may follow. In Australia, the law does not require all three.
How serious is a written warning at work?
A written warning is serious, but it is not the same as being dismissed. It becomes part of the staff member's record and can be relied on if the problem continues. If a dismissal for unsatisfactory performance is later challenged, the Fair Work Commission will consider whether the employee was warned first.
Is a warning letter disciplinary action?
Yes. A warning letter is usually treated as a form of disciplinary action. It is often a step before more serious action, such as a final warning or dismissal. Check your award, enterprise agreement, contract and workplace policies, as some set out a disciplinary process you need to follow.
Can an employer issue a warning letter to an employee?
Yes. Employers in Australia can give an employee warning letter when there is a genuine problem with conduct or performance. To keep it fair, check the facts, give the employee a chance to explain and be clear about what needs to change. If your workplace has a disciplinary policy, follow it.
Do warnings expire?
The Fair Work Act does not set an expiry date for warnings. Some enterprise agreements and workplace policies do, so check yours. Generally, the older and less related a warning is, the less weight it is likely to carry.
Can an employee dispute a warning letter?
Yes. An employee can respond in writing, raise a grievance under your policy or use a dispute process in their award or agreement. Consider their response genuinely and keep it on file with the warning.
Disclaimer: Scale Suite is not a law firm. This article is general information only, current as at 15 October 2026, and is not legal advice. Employment law and thresholds change, and every situation is different. Get advice from an employment lawyer or contact the Fair Work Ombudsman or Fair Work Commission for your situation before taking disciplinary action or dismissing an employee.
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