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Performance Improvement Plan (PIP): Employee Rights and Termination Risks
A Performance Improvement Plan (PIP) is often presented as a tool to help employees improve performance. In practice, however, a PIP can sometimes be a step toward discipline or termination. Understanding how performance improvement plans work, and what your rights are, is important for any employee who finds themselves in this situation.
Placed on a performance improvement plan?
A PIP can be a step towards termination. Understanding your rights and obligations is important to ensure that you are not wrongfully dismissed.
Call toll-free: 1-866-535-7654 Speak to an Employment LawyerWhat is a performance improvement plan?
A performance improvement plan is a structured process used by employers to address concerns about an employee's work performance. Employers often present a PIP as an opportunity to correct performance issues. However, in some cases a PIP may also serve as documentation leading toward termination if the employer believes performance does not improve.
Quick facts about performance improvement plans
- A PIP is a formal process used by employers to address performance concerns.
- Many PIPs last 30 to 90 days.
- Some employees successfully complete a PIP, while others may face termination if expectations are not met.
- In some situations, legal advice may help employees understand their rights before signing or responding.
What does a typical PIP include?
Specific performance concerns
A description of the issues the employer has identified with the employee's work.
Measurable improvement goals
Defined targets the employee is expected to reach within the plan period.
A timeline for improvement
A set period, often 30 to 90 days, during which the employee is expected to demonstrate progress.
Consequences if goals are not met
A statement of what may happen if the required improvement is not demonstrated.
Why employers use performance improvement plans
In legitimate circumstances, a PIP can help clarify expectations and allow an employee to demonstrate improvement. Common purposes include addressing declining work performance, documenting workplace concerns, creating measurable expectations, and giving employees an opportunity to improve. However, when implemented unfairly, a PIP may create pressure that ultimately leads to dismissal.
Is a PIP a warning before termination?
A performance improvement plan may function as a warning in some workplaces, but not always. In certain organizations, a PIP forms part of a progressive discipline process that may include verbal warnings, written warnings, performance improvement plans, and suspension or termination. In other cases, a PIP may be used simply to clarify expectations.
When a PIP is introduced suddenly or without prior feedback, employees sometimes have reason to be concerned. Employees who believe a PIP has been used unfairly may wish to seek legal advice regarding their employment rights.
Is your PIP part of a fair process or a path to termination?
Understanding which one you are facing matters. Our employment lawyers can review your situation and advise you on your rights before you sign anything or make important decisions.
Get Legal Advice Or call us: 1-866-535-7654Can you be fired after a performance improvement plan?
Yes. In many workplaces, a PIP may precede termination if an employer believes performance expectations are not met. However, termination following a PIP must still comply with employment law. Employees who are dismissed after a performance improvement plan may still have legal rights.
How long should a performance improvement plan last?
There is no single legal rule for how long a performance improvement plan should last. Many PIPs last between 30 and 90 days, depending on the nature of the concerns and the type of work involved. A reasonable timeline should allow an employee a fair opportunity to understand expectations, receive feedback, and demonstrate improvement.
Should you sign a performance improvement plan?
Employees are sometimes asked to sign a PIP to acknowledge receipt. Signing a performance improvement plan does not necessarily mean you agree with the employer's assessment. In many cases, the signature simply confirms that the document was received. If you are unsure about the implications of a PIP, you may wish to seek legal advice before signing or responding.
What happens during a performance improvement plan
Initial meeting
The employer meets with the employee to explain performance concerns and provide a written improvement plan outlining expectations.
Performance monitoring
Over the next 30 to 90 days, the employer evaluates whether the employee meets the required performance goals. Periodic check-ins may be scheduled to discuss progress.
Final review
At the end of the PIP period, the employer evaluates whether performance has improved. Possible outcomes include successful completion of the plan, an extension of the review period, disciplinary action, or termination of employment.
Signs a performance improvement plan may be unfair
Some performance improvement plans are implemented in a way that places employees at a disadvantage. In some circumstances, a poorly structured PIP may contribute to a constructive dismissal situation.
What employees should do if placed on a PIP
If you are placed on a performance improvement plan, taking the right steps early can protect your position. Consider reviewing the expectations carefully, asking for clarification where necessary, documenting communications with management, keeping copies of performance evaluations, and seeking legal advice if termination appears likely.
Performance improvement plans and employment law
Performance improvement plans can intersect with legal issues including wrongful dismissal, constructive dismissal, workplace discrimination, and retaliation or reprisal. If an employee believes a PIP has been used unfairly or as a step toward termination, speaking with an employment lawyer may help clarify their legal options.
Frequently asked questions about performance improvement plans
Does a PIP mean you will be fired?
Not necessarily. Some employees successfully complete performance improvement plans and continue their employment. However, a PIP may also signal that an employer has concerns about performance and is building documentation. Getting legal advice early helps you understand which situation you are facing.
Is a PIP disciplinary action?
It depends on the workplace and how the PIP is structured. In some organizations a PIP forms part of a formal progressive discipline process. In others it is presented as a performance support tool. The way it is implemented and what follows can have legal significance.
Can a performance improvement plan lead to termination?
Yes. If an employer concludes that an employee has failed to meet the goals set out in the plan, they may decide to terminate employment. However, any termination must still comply with employment law, and the employee may still be entitled to notice, termination pay, severance, or common law reasonable notice.
Can a PIP be used for constructive dismissal?
In some circumstances, yes. If a PIP imposes unrealistic expectations, removes key responsibilities, or creates intolerable working conditions, it may form the basis of a constructive dismissal claim. An employment lawyer can assess whether the circumstances of your PIP raise these concerns.
Can an employee refuse a performance improvement plan?
Technically an employee may decline to sign a PIP, though this is generally not advisable without legal advice. Refusing to engage with a PIP can create its own risks. Before deciding how to respond, it is worth speaking with an employment lawyer to understand your options.
Placed on a PIP and concerned about your job?
If you have been placed on a performance improvement plan and are unsure what it means for your employment, our team can help. We advise employees across Ontario on wrongful dismissal, constructive dismissal, and employment rights before and after termination.
Call us toll-free at 1-866-535-7654 or fill out the form below for a confidential consultation.
The article in this client update provides general information and should not be relied on as legal advice or opinion. This publication is copyrighted by Achkar Law Professional Corporation and may not be photocopied or reproduced in any form, in whole or in part, without the express permission of Achkar Law Professional Corporation. ©