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Mischaracterising a performance issue as misconduct is a common mistake that can significantly undermine an employer's defence of unfair dismissal claims, a lawyer says.

Misconduct relates to behavioural concerns with an employee, and might typically include breaches of an employment contract, company policy or the law, says Clayton Utz partner Amanda Lyras, in a new HR Daily Premium webcast on best-practice PIPs and performance management.

However, there are some grey areas, Lyras notes.

"A failure to comply with a reasonable direction can sometimes be classified as a performance issue, but commonly is more so a conduct issue," she says by way of example...