What Is a Performance Improvement Plan (PIP) in Canada?

If you’ve been handed a Performance Improvement Plan (PIP) at work, you’re not alone — and you’re not powerless.

In Canada, a PIP is often used by HR when an employer claims there are issues with your performance, behaviour, or productivity. But it’s also a tool that’s commonly misused, especially when employers are preparing to terminate someone — even if they’re not saying it outright.

This blog explains:

• What a performance improvement plan is
• Whether you have to sign it
• How it can affect your job
• What to do if it leads to dismissal
• When a PIP may be a setup for constructive dismissal

What Does PIP Mean in HR?

A Performance Improvement Plan (PIP) is a formal document your employer may issue to outline:

• Specific concerns about your work
• Expectations or targets for improvement
• A timeline to meet those expectations
• Possible outcomes — which can include discipline or termination

Do I Have to Sign a Performance Improvement Plan?

No. You’re not legally required to sign a PIP — and in most cases, you shouldn’t.

Signing a PIP could be seen as agreeing to its contents, including any performance issues or accusations. That could come back to haunt you if the situation escalates to termination or legal action.

✅ Instead, do this:

• Acknowledge receipt only, in writing.
• Respond with your version of events.
• Dispute any inaccuracies clearly and professionally.

What Should I Do If I’m Put on a PIP?

If you’ve been placed on a performance improvement plan, here are key steps to protect yourself:

1. Stay Calm and Don’t Panic
   Being on a PIP doesn’t mean immediate termination. But it does mean you need to be proactive.
2. Review the PIP Carefully
   Understand the claims being made, the deadlines, and what the employer is asking of you.
3. Don’t Ignore It
   Even if the PIP is unfair or incorrect, ignoring it gives your employer more ammunition.
4. Document Everything
   Keep detailed records of your performance and successes, interactions with your manager or HR, and your responses to the PIP.
5. Get Legal Advice
   An employment lawyer at Samfiru Tumarkin LLP can assess whether the PIP is legitimate, part of a setup, or grounds for constructive dismissal.

Is a PIP a Warning or the First Step to Termination?

It can be both.

Some employers use PIPs in good faith to help employees improve. But most others use them to justify a “for-cause” dismissal, meaning they can avoid paying severance.

📉 Courts in Canada rarely accept a PIP as justification for firing someone with cause.

To succeed with a just cause termination, employers usually need to show:

• Prior verbal and written warnings
• Opportunities to improve
• A pattern of misconduct or poor performance
• Progressive discipline

Even if your employer takes those steps, it often doesn’t satisfy a dismissal for cause.

Can I Be Fired After a PIP in Canada?

Yes, but there are two scenarios:

1. Without Cause Termination

This is the most common — your employer ends your job but still owes you severance pay.

In Canada, severance can range from a few weeks to up to 24 months’ pay, depending on your:

• Age
• Length of service
• Position
• Availability of similar work

2. With Cause Termination

This means no severance — but it’s very difficult for employers to prove in court. A PIP almost never meets the threshold unless it follows a long history of documented issues.

Can a Performance Improvement Plan Be Constructive Dismissal?

Yes. If a PIP is unfair, unrealistic, or part of targeted harassment, it may amount to constructive dismissal.

Here’s when that could apply:

• You’re being micromanaged or humiliated in front of others
• Your responsibilities or role have been significantly changed
• The PIP is based on false or exaggerated claims
• You feel pushed out of your role without formal termination

Do Employees Have Rights During a PIP?

Absolutely. Under Canadian law, employees:

• Can’t be discriminated against
• Are entitled to fair treatment and progressive discipline
• Must be given a real opportunity to meet expectations
• Can challenge false accusations
• May be owed severance or even punitive damages if wrongfully dismissed

Key Takeaways for Employees

1. A PIP is not a death sentence — but it’s a red flag.
   Take it seriously, document everything, and seek guidance.
2. Never sign a PIP without legal advice.
   You could be admitting to something you didn’t do.
3. A PIP can lead to severance — or constructive dismissal.
   Don’t let your employer pressure you into quitting or accepting less than you’re owed.
4. Talk to an employment lawyer before making any major decisions.
   Our team at Samfiru Tumarkin LLP can review your situation and explain your rights.

Get Help with a Performance Improvement Plan in Canada

If you’ve been put on a performance improvement plan, you don’t have to go through it alone. Before you sign anything, talk to an employment lawyer at Samfiru Tumarkin LLP.

• 👥 Over 50,000 clients helped across Canada
• 💰 Secured millions in severance and settlements
• ⚖️ No win, no fee — you don’t pay unless we win (Conditions apply. Not all cases qualify.)
• ⭐ 3,000 5-star Google reviews across Canada (4.7 average)
• 🏆 Recognized as one of Canada’s Best Law Firms by The Globe and Mail

📞 Call us at 1-855-821-5900 or request a consultation online.