A performance improvement plan (PIP) can be used by employers when they have concerns about an employee’s performance or behaviour in the workplace. PIPs can include a variety of suggestions to improve workplace conduct, which include progressive guidelines in areas that an employee needs to work, strategies for improvement, timelines for the employer to check in on the employee’s progress, etc.
In some circumstances, PIPs are provided to employees prior to the employer taking more serious measures such as suspensions or terminations. Should an employee fail to abide by the PIP, it is possible that they may be terminated from their employment for reasons outlined within the PIP itself. An employer may choose to terminate an employee for cause if the reasons for doing so are in relation to the employee being unable to satisfy the PIP. A termination for cause requires an employer to meet a high threshold to justify terminating an employee for just cause – outside of performance issues, an employer has to prove that the employee was provided with numerous warnings and opportunities to improve prior to moving forward with a termination for cause. If an employer is unable to demonstrate that these warnings occurred, an employee could argue that they were wrongfully terminated for cause. For these reasons, an employer may choose to terminate an employee without cause despite providing the employee with a PIP to avoid addressing the threshold to justify terminating an employee for cause.
Are Some PIPs Designed to Make Employees Fail?
If an employee successfully completes a PIP, it is possible that an employer can still choose to terminate the employee with or without cause. If an employee is terminated without cause, they are entitled to a separation package either under the common law or under statute depending on the enforceability of their employment agreement. On the other hand, if an employee is terminated for cause even after completing a PIP, the employer will need to demonstrate the reasons for termination to justify that there was cause to terminate. If an employer terminates an employee for cause even if the employee completes the PIP, it is possible that the termination was completed in bad faith, however it is important to review the employee’s record and the overall circumstances of termination before determining whether the termination was conducted in bad faith.
How can Whitten & Lublin help?
If you have been provided with a performance improvement and are unsure of its implications and potential next steps, we can assist with your matter. Contact us for further information regarding your entitlements online or by phone at (416) 640-2667.
