If you have recently received a Performance Improvement Plan (“PIP”) and are feeling uncertain about your next steps, you’re not alone. You may feel blindsided, especially if you have not been told that your performance is a problem: Is this a genuine attempt to help me improve, or is it a step toward termination?

Do not let confusion and anxiety overwhelm you. Gain clarity on what a PIP truly means, explore your options for improvement, and learn how to respond to the PIP. Understanding your situation can empower you to make informed decisions about your career.

What You Should Know About Your PIP?

In theory, a PIP is a tool used by employers to help an employee correct performance issues through clear expectations, measurable goals, and constructive feedback. It is meant to be part of a good-faith effort to support improvement on specific performance issues.

However, that is not always how it plays out in practice. Some employers use PIPs as a strategic way to build a paper trail to justify letting an employee go “with cause”.

Here are some of the red flags that your PIP may be more about protecting your employer than genuinely helping you succeed:

• You were never given feedback or warnings about your performance before the PIP.
• The goals are vague, unrealistic, or impossible to meet within the timeline provided.
• You were not provided with or were denied any resources or assistance to improve the performance issues alleged by the employer.
• You are being micromanaged or excluded from meetings you used to attend.

If any of these apply to you, the PIP may be part of a plan to manufacture cause for dismissal or to push you to resign.

A PIP May Be A Cover-up for Your Termination And You May Get Additional Compensation

Some employers use PIPs as a cover for their intent to terminate. They think that if the PIP fails, they may be able to justify a “cause” termination, or pressure you into quitting, to avoid paying you what you are owed – your notice of termination or pay in lieu of notice.

However, in Ontario, employers must meet a high legal threshold to terminate someone “for cause” without paying reasonable notice under common law. A single poor performance review or PIP is almost never enough. To prove cause, the employer must show serious and repeated subpar performance and that the employee was given a reasonable opportunity to improve.

In some cases, a bad-faith PIP, especially if combined with other mistreatment (such as public shaming), can justify a constructive dismissal claim. That means your employer has essentially terminated you through their conduct, even if they have not said the words.

Sometimes, an employee may be awarded additional damages due to their employer’s bad-faith implementation of PIP. In a 2010 Ontario case, an employee was awarded $45,000 for their employer’s manner of termination, including the failure to carry out the PIP in good faith.

How to Protect Yourself

If you have been put on a PIP, here is what you can do:

Document Everything

Signing a PIP to acknowledge receipt does not mean you agree with it. Clearly state in writing (email is fine) if you dispute the allegations, timelines, or process. This protects your position later if legal action is necessary.

Additionally, save emails, meeting notes, and any correspondence related to your performance.

Speak to a Lawyer

If you have been put on a PIP, a lawyer can help you:

• Respond to the PIP in writing.
• Negotiate a severance package if you’re being pushed out.
• Assess whether the PIP process amounts to constructive dismissal.
• Assess whether you are entitled to additional compensation due to how your employer implemented the PIP.

Next Steps

While your employer may be acting in good faith with the intent to help you, if it feels off or if it comes as a surprise that may not be the case. Remember, your employer cannot get rid of you without consequences.

If you have received a PIP and feel it is being used unfairly, especially if it came out of nowhere or seems designed for you to fail, do not wait until you are dismissed. Speak with an employment lawyer right away. You may be entitled to a severance package, and in some cases, additional damages.