How to Defend Against a Performance Improvement Plan (PIP)

What is a PIP? A Performance Improvement Plan (PIP) is a formal process that employers use to address performance concerns. The employer ought to have guidance on what a PIP is and in what circumstances it would seek to impose one. This can sometimes be found in the employee’s employment contract. Other places you might find this are in the Company Handbook, Employees’ Handbook or the employer’s Intranet/HR portal.   PIPs have a number of stages, which are usually (but not always) arranged as follows: 1. Informal PIP 2. Formal PIP – stage 1 3. Formal PIP – stage 2    Failing a PIP can result in disciplinary action, which may result in dismissal, but the employer ought to follow a fair process. It is not usually possible to bring a claim for ‘ordinary’ unfair dismissal (in this context, that means for performance-related issues) if an employee has less than two years’ service. Although this might change with the Employment Relations Act due to come out next year (2026).   When PIPs are used PIPs are one of the tools used by employers to seek to improve performance, especially if the employer has an issue with an individual’s work. Whilst a PIP can provide an opportunity to improve, it can also serve as a step toward dismissal.   If your employer opens a discussion about a PIP, it is crucial to approach the process strategically. This guide outlines key steps to protect yourself and improve your chances of a fair (and hopefully successful) outcome.  

What to do: Action Plan The first step when receiving notice of a PIP is to check your employer’s policy. There are many different possible names for this policy, but their effect is the same. Note: Policies related to performance can vary and could be called ‘Performance Improvement Policy’, ‘Performance Management Policy,’ ‘Employee Performance Review Policy’ or ‘Performance Appraisal Policy’.   The first thing to do is find out what are the conditions an employee must meet to qualify for a PIP. This is usually a shortcoming related to the employee’s performance of his/her/their primary responsibilities.    There is usually a section in the policy devoted to informally resolving the issue, sometimes called an informal PIP. If this is the case, then this step should be followed before starting any formal process. Sometimes, employers will seek to initiate PIPs prior to trying informal resolutions, or against their policies’ criteria for who is eligible for a PIP. If you believe you have been put on a formal PIP contrary to your employer’s policy, the first thing you must do is point this out, making direct reference to the relevant section of their policy.

As with anything regarding your employer, ensure you get everything in writing.   If you are eligible for being put on a PIP, follow the steps below.   1. Assess the PIP’s Validity PIP terms are usually subject to agreement, so it is very important that employees – before agreeing to the PIP – carefully review the basis for it and how it is structured. Use SMART Criteria to help set the targets. Check for the following: ✅ Are the actions and targets reasonable? The objectives should be: - Specific, with no room for misinterpretation of the target. - Measurable, with a pre-agreed quantity or number to reach. - Achievable, especially within the timeframe provided. - Realistic, an average colleague should also expect to meet the target. - Time-bound, there must be a specific window of time in which you should reach the target. ✅ Is the process fair and non-discriminatory? - Check that similar performance issues have been addressed consistently among colleagues. - If you suspect discrimination (e.g., based on age, race, gender, disability, or another protected characteristic), seek advice from your union representative. ✅ Is there a sound basis for the PIP? - The PIP should be based on clear, documented performance concerns—not vague, non-specific or subjective criticisms. - If past performance reviews were positive, challenge any sudden change in assessment, especially if the issues have never been raised until the PIP proposal. 2. Your Right to Representation If the PIP could lead to dismissal, you have the right to be accompanied at meetings. This can be a union representative or a colleague. - If you’re unsure whether dismissal is a possible outcome, ask for clarification in writing. 🔹 Note: If you have been with the company for less than two years, you have fewer protections against unfair dismissal. However, discrimination claims or breach of contract claims can still apply. 3. Proactively Manage the PIP Once the PIP is set, focus on documenting your progress and gathering evidence to support your case.

Key Steps: 📌 Engage with the process actively - Show commitment to improvement by following the PIP’s steps and meeting deadlines. - If any target is unclear or unrealistic, request clarification or adjustments in writing. 📌 Request regular feedback (even excessively!) - Proactively ask stakeholders (managers, colleagues, or clients) for feedback in writing. - Gather positive feedback that confirms your improvement and achievements. 📌 Identify and prepare for weak areas - Before the review meeting, pinpoint incidents where you may have fallen short. - Ask colleagues/stakeholders for their perspective and prepare a defense. Questions to Ask Yourself: - Can you show measurable improvements since the issue was raised? - Were the concerns one-time issues ("blips") rather than ongoing failures? - Even if you haven’t met every target, are you showing progress? - Do you have evidence of progress (emails, reports, feedback)? 4. Preparing for the Review Meeting - Document everything: Keep a record of actions you have taken, feedback received, and any challenges encountered. - Challenge unfair points: If targets were unreasonable or the process was unfair, raise these concerns. - Be professional and constructive: Demonstrating a positive attitude toward improvement strengthens your position. 5. Get Support You are not alone.

If you believe the PIP is unfair or being used to push you out, seek support early. - Speak to your union representative for advice and advocacy. - Consult external resources for further guidance on performance issues and employment rights. 🔗 Useful resource: Redmans Solicitors: Guide to Performance Issues at Work By taking a strategic approach, actively engaging with the process, and gathering supporting evidence, you can defend yourself against an unfair PIP and improve your chances of a favourable outcome. A Final Word

We at UTAW have been seeing PIPs used more and more frequently as a means of managing people out.

The best defense is always collective. This is why it is so important for us all to be building strong workplace unions. Alone, we have very little power. But together, with union recognition contracts, we are much better able to defend ourselves.

If you want to learn how to organise your workplace and win union recognition, become a member.