Performance Improvement Plan (PIP)

What is Performance Improvement Plan (PIP)?

A Performance Improvement Plan, or PIP, is a written document HR and the manager give to an employee whose performance is consistently below expectations. It typically runs 30, 60, or 90 days, lists specific gaps, sets clear improvement targets, schedules weekly one-on-ones, and names the consequence if targets are missed (usually exit). PIPs protect both sides legally. The employee gets a fair chance and clear feedback. The company builds a paper trail in case termination becomes necessary. A well-run PIP either turns the employee around or makes the exit conversation respectful and well-documented. A badly run PIP feels like a setup and damages team trust.

How Performance Improvement Plan (PIP) is used

Start a PIP only after informal feedback has failed. Surprise PIPs without prior warning are seen as unfair and often end in legal complaints.

Performance Improvement Plan (PIP) FAQs

Can an employee resign during a PIP?

Yes, anytime. Many do. The notice period in the appointment letter still applies, though some companies waive it to ease the exit.

Is a PIP grounds for termination?

Failing a PIP is grounds, but only if the plan was specific, fair, and documented. Vague PIPs get challenged in labour courts.

Should HR or the manager run the PIP?

The manager runs the weekly check-ins. HR drafts the document, attends the kickoff and closure meetings, and keeps records.