Who can use this document?

If you are seeking to address concerns regarding an employee’s performance, you may use this Performance Improvement Plan (PIP) template.

Important disclaimer

The information contained in this blurb is of a general nature only and is not, nor is it intended to be, advice on any specific professional matter.

Before acting on the basis of any material contained in this blurb, we recommend that you consult your professional adviser.

What is the purpose of this document?

Once completed, this document is intended to formally outline areas where an employee’s performance is not meeting the required standards and to provide a structured plan for improvement. The purpose of a PIP is to set clear expectations, support measures, and timelines, giving the employee a fair opportunity to address performance concerns. Typical situations where this document may be used include:

• Ongoing failure to meet performance targets or objectives.
• Repeated errors or unsatisfactory work quality.
• Inability to perform key duties as outlined in the employee’s role description.

This document should not be used for conduct or behavioural issues unrelated to performance, or for minor issues that can be resolved through informal feedback.

Considerations for employers

When completing the template PIP, it is important that you include a different row for each area of observed underperformance issue. The issues identified should be objective and reflect expectations from the employee’s position description or contract. The expected outcomes need to be realistic, objective and measurable so that the employee can understand and achieve them. Avoid listing subjective concerns unrelated to an employee’s job description here.

Once the document has been prepared, you should meet with your employee and ensure you clearly communicate the specific areas of underperformance, provide specific examples, and explain the impact on the team or business. The employee should be given a reasonable opportunity to respond to the concerns and to participate in developing the PIP.

The PIP should set out clear, measurable performance expectations, the support or resources that will be provided (such as training or mentoring), and the timeframes for improvement. Regular review meetings should be scheduled to monitor progress.

Ensure the employee is given a reasonable period of time to demonstrate improvement, taking into account the nature of the role and the performance issues identified.

Outline any assistance available to the employee, such as access to an employee assistance program (EAP) or other support services.

Clearly state the potential consequences if the required improvement is not achieved within the specified timeframe, which may include further disciplinary action up to and including termination of employment.

Ensure you retain a copy of the plan for your records and related correspondence or meeting notes for your records.

PIPs can have significant legal and practical implications. We strongly recommend that you exercise care when implementing a PIP and seek legal advice if unsure about any aspect of the process.

If you have any questions about using this template or require further guidance, please seek advice from HR Command.