We're new business owners in Australia.
We were only a couple of weeks in to our business when we moved a confident employee who really wanted to work for us (with a customer-facing role) from casual to full-time. We provided him with contracts to take away and sign.
We have a clause in our contract that says:
Warranties as to Your Fitness and Obligations to Others
You represent to us that: there are no limitations on your ability to fully perform all of your duties and responsibilities for the Employer, including physical or psychological limitations or limitations arising from any prior employment;
He kind of jumped us with the disclosure that btw he had anxiety and depression and was receiving treatment for it. We kind of panicked and just accepted the signed contract back. He obviously didn't want to make a big deal about it and neither did we.
Fast-forward a year and he is not coping. He's really negative and manic and that's when he's having a good day.
His performance degraded gradually and we've progressively just taken duties away from him and now he's got virtually no responsibilities, just using up hours that could be going to decent employees. Frankly we can't afford to employee him anymore.
We have the dilemma though that when we approach him about his performance problems he cries "mental health" and says that we're bullying or being prejudice. We're the wettest, softest, smallest owners you've ever met and if anything it feels like he's bullying us.
Basically performance review is so hard but we're desperate to get rid of this guy because he's really damaging our business. He's stated clearly he will take us to fairwork if he gets fired.
Does anyone know what we can do?
NB He also wants a pay rise.