How to write a warning letter to an employee
A complete guide to writing effective employee warning letters that meet Fair Work requirements. Learn the 6-step process, essential letter elements, common mistakes to avoid, and get free templates.
Written by
Steve Harris
General information only – not legal advice
This guide provides general information about writing warning letters in Australian workplaces. It does not constitute legal advice. For specific situations, consult Fair Work or a workplace relations advisor. It does not constitute legal, HR, or professional advice and should not be relied on as a substitute for advice specific to your business, workforce, or circumstances.
Why warning letters matter in Australian workplaces
A well-written warning letter is a critical part of employee management and addressing performance or conduct issues. It serves three essential purposes:
Documentation
Creates an official record that you've addressed the problem and communicated clear expectations
Fair process
Demonstrates you gave the employee a genuine chance to improve before escalating action
Legal protection
Provides evidence of procedural fairness if challenged at the Fair Work Commission
If an employee later claims unfair dismissal, the Fair Work Commission will look at whether you followed a fair process – including whether the employee was warned about issues and given an opportunity to improve. Proper documentation protects your business and demonstrates good employment law practice.
Important
Warning letters are part of disciplinary action for conduct or policy breaches. For performance gaps, consider a performance improvement plan (PIP) instead. See the comparison below.
How to issue a warning letter in 6 steps
Follow this process to ensure your warning is fair, clear, and defensible under Australian employment law.
Investigate the issue thoroughly
Before writing a warning, ensure you have complete information about what happened. Conduct a proper workplace investigation if the matter is serious.
Key actions:
- Gather all relevant facts, dates, times, and witnesses
- Review any previous discussions or informal warnings
- Check your workplace policies to confirm the behaviour breaches expectations
- Consider any mitigating circumstances the employee has raised
Meet with the employee first
Have a face-to-face conversation before issuing a written warning. This meets Fair Work procedural fairness requirements.
Key actions:
- Explain the specific issue and give the employee a chance to respond
- Listen to their perspective – there may be context you're not aware of
- Advise them they can have a support person present
- Take notes of the discussion for your records
Decide if a written warning is appropriate
Consider whether the situation warrants a formal warning or if other action is more suitable. For performance gaps, consider a performance improvement plan instead.
Key actions:
- Is this a first offence or a repeated issue?
- How serious is the conduct or performance issue?
- Have informal discussions been ineffective?
- For serious misconduct, a first and final warning or termination may be appropriate
Write the warning letter with required elements
Include all necessary information to make the warning clear and defensible. Use our free warning letter template to ensure you include all required elements.
Key actions:
- Date of the warning and employee details
- Clear description of the issue (what, when, who was affected)
- Reference to relevant policies or expectations breached
- The required improvement and timeframe
- Consequences if improvement doesn't occur
Deliver the warning formally
Present the warning in a meeting and give the employee the document. Store the signed warning securely using digital HR records for compliance.
Key actions:
- Schedule a private meeting to deliver the warning
- Allow the employee to have a support person present
- Explain the warning clearly and answer questions
- Give them the letter and ask them to sign acknowledgment of receipt
Follow up and document
Monitor improvement and keep records for future reference. Document all follow-up meetings and outcomes.
Key actions:
- File the warning letter and meeting notes securely
- Schedule follow-up meetings to review progress
- Document any improvement or continued issues
- If improvement occurs, acknowledge it positively
Warning letter or performance improvement plan?
It's important to use the right tool for the situation. Warning letters and performance improvement plans serve different purposes:
| Aspect | Warning Letter | Performance Improvement Plan (PIP) |
|---|---|---|
| Purpose | Disciplinary action for conduct or policy breaches | Supportive process to address performance gaps |
| When to use | Policy violations, misconduct, behavioral issues | Skills gaps, productivity issues, quality concerns |
| Tone | Formal, corrective, consequence-focused | Supportive, developmental, improvement-focused |
| Example issues | Repeated lateness, policy non-compliance, inappropriate behavior | Not meeting sales targets, slow task completion, quality below standard |
| Next step if unsuccessful | Further warning or termination | May lead to role change or termination |
Tip: If an employee demonstrates a pattern of both conduct and performance issues, you may need both a warning (for conduct) and a PIP (for performance). Document each separately and clearly.
Essential warning letter elements
Include all these elements to create a comprehensive, defensible warning letter that meets Fair Work standards.
Date and recipient details
The date of the letter and the employee's full name and position
Date: 2 February 2026 To: John Smith, Sales Assistant
Subject line
Clearly identify this as a formal warning
Subject: First Written Warning – Attendance
Specific issue description
Detailed facts about what happened, when, and the impact
On 15, 22, and 29 January 2026, you arrived late to your scheduled shifts at 9:15am, 9:30am, and 9:45am respectively (rostered start time: 9:00am). This resulted in incomplete opening procedures and customer complaints about service delays.
Policy reference
Reference the policy, procedure, or expectation that was breached
This conduct is inconsistent with our Attendance Policy (section 3.2) and your employment contract which requires punctual attendance.
Employee's response
Note what the employee said when given the opportunity to respond
In our meeting on 30 January 2026, you explained that you experienced transport difficulties. We discussed alternative transport options.
Required improvement
Clear, measurable expectations for what must change
You are required to arrive on time (by 9:00am) for all scheduled shifts, effective immediately. If transport issues arise, you must notify your manager at least 2 hours before shift start.
Review period
Timeframe for monitoring improvement
Your attendance will be monitored for the next 3 months (until 2 May 2026). We will meet fortnightly to review your progress.
Consequences
What will happen if improvement doesn't occur
If there is no sustained improvement, further disciplinary action up to and including termination may occur.
Support offered
Any assistance or resources being provided
Please speak with your manager if you need support with transport arrangements. We can discuss flexible start times if there are ongoing issues.
Acknowledgment
Space for the employee to sign receipt (not agreement)
Employee signature acknowledging receipt: _______________ Date: ___ Note: Your signature acknowledges you have received and understood this letter. It does not indicate agreement with its contents. You may provide a written response within 5 working days.
Free warning letter template
Download our free, customisable warning letter template designed for Australian businesses. Includes all essential elements and compliance requirements.
Warning letter template
Fully editable Word document with instructions. Includes first warning, final warning, and first & final warning versions. Plus guidance on when to use each type.
Download free templateAlso available:
Common warning letter mistakes
Avoid these pitfalls that can undermine your warnings and create legal risk.
Being vague about the issue
Problem: The employee doesn't understand what they did wrong or how to improve
Solution: Include specific dates, facts, and examples – not generalisations like "poor attitude" or "bad behaviour"
Not giving the employee a chance to respond
Problem: Unfair dismissal claims may succeed if there was no procedural fairness
Solution: Always meet with the employee first, allow them to bring a support person, and genuinely consider their response
Threatening without following through
Problem: Warnings lose credibility if consequences never occur
Solution: Only state consequences you're prepared to follow through on. If you say 'further instances will result in termination', be prepared to act
Inconsistent application
Problem: Discrimination claims if similar issues are treated differently across employees
Solution: Apply the same standards and process to all employees. Document why different outcomes occur if circumstances differ
Not keeping records
Problem: No evidence to defend your actions if challenged at Fair Work
Solution: Keep copies of warnings, meeting notes, and evidence for 7 years as required by Fair Work. Use digital HR records for secure, compliant storage
Confusing warnings with PIPs
Problem: Using the wrong tool for the situation can undermine your process
Solution: Use warnings for conduct/policy breaches. Use PIPs for performance gaps. See comparison below
Industry-specific guidance
Warning letters may need to address industry-specific considerations and regulations:
Hospitality & retail
Common warning issues:
Industry-specific tips:
- Document specific customer complaints with dates and details
- For cash discrepancies, reference your cash handling policy and any training provided
- Consider peak trading periods when assessing lateness impact
- Include reference to food safety requirements if relevant
Healthcare & aged care
Common warning issues:
Industry-specific tips:
- Reference relevant NDIS or aged care quality standards
- Document any mandatory reporting obligations triggered
- Consider clinical governance requirements in your investigation
- Include details of any immediate risk management actions taken
Common warning issues:
Industry-specific tips:
- Reference Education and Care Services National Regulations
- Document impact on child safety and wellbeing
- Note any notifications made to regulatory authorities
- Include reference to Working with Children Check requirements if relevant
Simplify HR documentation and policy management
RosterElf HR Hub provides templates, secure storage, and policy tracking for disciplinary documentation. Store warning letters securely, track acknowledgements, and maintain Fair Work compliant records.
Related guides and resources
More HR and compliance support.
Create a performance improvement plan
Guide to PIPs for performance gaps.
Learn moreConduct a workplace investigation
Investigation process for serious issues.
Learn moreHandle workplace complaints
Manage employee complaints effectively.
Learn moreTerminate an employee
Step-by-step termination guide.
Learn morePolicy management software
Store and track policy acknowledgements.
Learn moreDigital HR records
Secure, compliant employee record storage.
Learn moreFrequently asked questions
- No, there's no legal requirement for three warnings. The Fair Work Commission considers whether the employee was given a reasonable opportunity to improve. For serious misconduct (theft, violence, fraud), termination without prior warnings may be justified. For performance issues, one or two documented warnings showing a chance to improve is generally expected.
- The employee is not legally required to sign. The signature acknowledges receipt, not agreement with the contents. If they refuse to sign, note this on the letter with "Employee declined to sign" and the date. Have a witness present if possible. The warning is still valid.
- Yes, verbal warnings are appropriate for minor issues or first occurrences. However, document verbal warnings in your records with the date, issue discussed, and agreed actions. If the issue continues, escalate to a written warning with reference to the prior verbal discussion.
- A first warning indicates this is the initial formal notice about an issue. A final warning indicates that further instances will likely result in termination. For serious matters, you can issue a first and final warning. The warning level should match the severity and history of the issue.
- Yes. Fair Work provides free warning letter templates that include all recommended elements. You can also use our customisable warning letter template designed for Australian businesses.
Regulatory sources
This guide is aligned with official Australian workplace regulations and best practice.
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