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The work studied the effect that processing parameters have on microstructure and mechanical properties of dual-phase steel grade 980. This was achieved by subjecting steel coupons to various annealing cycles featuring different heating rates, cooling rates and intercritical annealing temperatures using a dilatometer. Following heat treatments, the microstructures and mechanical properties of the coupons were compared. Experimental results showed that when partial austenitisation is performed, the cooling rate does not affect phase transformation, microstructure or microhardness if kept within the studied range (-2.1 °C/s to -7.1 °C/s). By contrast, the intercritical austenitisation temperature affects the phase transformations significantly during cooling. Thus, the amount of austenite formed during intercritical annealing influences the phase transformation kinetics during cooling.