Facing a Performance Improvement Plan (PIP) at work can be extremely difficult, confusing and stressful. Are you asking yourself – what should I do if my employer asks me to sign a performance improvement plan? It’s critical that you know how to properly respond. A key takeaway is that you should not sign a PIP if you disagree with the allegations, as it will weaken your position if you are later terminated. This blog explains what a PIP means for your employment and provides practical, legally sound steps to take if your employer places you on a PIP and asks you to sign one.
What is a Performance Improvement Plan (PIP)?
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.
What does a PIP mean for my employment?
PIPs can be useful for employers to assist with improving an employee’s performance or conduct. However, PIPs are also typically 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.
Can my employer terminate me after a PIP?
If the employee does not fulfill the terms of the PIP, an employer may choose to terminate the employee. They may also use the PIP to terminate the 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.
What happens if I refuse to sign a PIP?
Employers frequently ask employees to review and sign back the PIP acknowledging that they agree with the allegations in the PIP. It is important that employees do not sign back and agree with the allegations, especially if the employee disputes the allegations. By signing the PIP, it provides an employer with arguments to allege that the employee was aware of and agrees with the allegations set out in the PIP. Instead, an employee can advise the employer that they acknowledge the allegations and provide explanations as to why they disagree with the PIP.
How can Whitten & Lublin help?
If you have been provided with a performance improvement plan 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.
