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It was "heavy handed" to frame an employee's error as a conduct rather than performance issue, the Fair Work Commission has ruled.

And even though the employee's performance fell short of reasonable expectations, failing to clearly put her on notice of the issues made her dismissal unfair, Commissioner Alana Matheson found.

Coronation Property Co sacked the assistant accountant in September last year with three months' notice, placing her on garden leave until 19 December.

In unfair dismissal proceedings, the Commission heard the employee had started a performance improvement plan (PIP) in June. It ended a month later, and she received a written warning stating her performance remained below the required standard for her position...