Not meeting targets does not automatically mean poor performance

Setting targets by the employer is – mainly in sales positions – not uncommon. This makes it clear to the employee what he must achieve in his position. If an employee does not meet his target, the employer often sees this as underperformance and wants to terminate the employment contract. But is there sufficient ground for dismissal?

What is underperformance?

What exactly poor performance entails depends on the circumstances of the case. However, there are a number of criteria that a judge assesses:

1. The employee is unfit to perform the agreed-upon work.
2. The unsuitability does not result from illness or disabilities of the employee.
3. The unsuitability does not result from illness or disabilities of the employee.
4. The employee has been given sufficient opportunity to improve his performance.
5. The employee has been given sufficient opportunity to improve his performance.
6. Reassignment of the employee within a reasonable period, with or without training, to another suitable position, is not possible or is not reasonable.

The employer must also be able to prove the poor performance. A good dossier is therefore necessary.

Plausible explanation

It is important that failing to meet targets does not automatically mean that someone is underperforming. After all, there may be other factors causing targets not to be met, such as illness, an economic crisis, or deploying an employee in a new region. It is also of great importance that the targets set are reasonable.

Performance improvement plan

If the employer believes there is underperformance, he must offer the employee an improvement plan. The first step in this is that the employee is made aware of what needs to improve. It is also important that the objectives are realistic, that there is a reasonable period to achieve the objectives, and that the employee receives sufficient guidance or (external) support.

Substantiate

To obtain a dismissal on the grounds of underperformance from the court, more is required than merely asserting that the employee failed to meet targets. Targets must be realistic, and the failure to meet them must be attributable to the employee. As an employer you must therefore produce a well-documented personnel file demonstrating that the employee is falling short and that you have done everything possible through an improvement plan to change this. Only then can you truly speak of underperformance.