Summary: What is a Performance Improvement Plan?

A performance improvement plan (PIP) is a formal document used by Alberta employers to outline an employee’s perceived performance deficiencies and set specific goals for improvement.

While framed as a “supportive” tool, a PIP is often the first step in a progressive discipline process intended to lead to a termination for cause. In Alberta, if a PIP is unfair or used to harass you, it may constitute constructive dismissal.

Legal Insight

Does a PIP Mean You’re Getting Fired?

Not always, but it is a serious warning. If you “fail” a PIP, your employer may try to fire you without severance pay. However, meeting the high legal threshold for “just cause” in Alberta is difficult, and most employees on a PIP are still entitled to full compensation.


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What is a Performance Improvement Plan (PIP)?

At its core, a PIP at work is a structured trial period. It typically lasts between 30 and 90 days and includes specific, measurable goals. In Alberta, employers use these to demonstrate they have given the employee a “fair chance” to improve. If the employee fails, the employer argues they have just cause for termination — meaning no severance pay is required.


Is Poor Performance a Just Cause for Termination in Alberta?

A common question from employees is whether is poor performance termination for cause. In Alberta, the short answer is almost never. While an employer can fire you for not meeting expectations, they usually can’t do so “for cause” (without severance) unless they meet an incredibly high legal threshold.

To prove that poor performance a just cause for termination, an Alberta employer must typically prove:

  • The performance standards were reasonable, attainable, and clearly communicated.
  • The employee was given proper training and the necessary resources to succeed.
  • The employee was given a fair and documented chance to improve (the PIP process).
  • The employee was clearly warned that a failure to improve would result in a “for cause” termination.

The Reality: Most Alberta employers use PIPs to encourage a resignation or to justify a firing they’ve already decided on. Because they rarely document performance issues perfectly, an employee fired for “poor performance” is almost always still entitled to their full severance package.


Should I Sign a Performance Improvement Plan?

This is the most common question employees ask. Refusing to sign a PIP can be viewed as insubordination, but signing it without comment may look like you agree with the unfair criticisms.

The Strategy: You should generally sign to acknowledge receipt, but add a written note stating: “I acknowledge receipt of this plan, but I do not agree with the assessment of my performance and will provide a formal response.”

⚠️ Warning: If a PIP contains “impossible” goals or was issued without warning after years of good reviews, it may be a form of employer retaliation or constructive dismissal. Consult a lawyer before agreeing to unrealistic terms.

PIP and Stress Leave in Alberta

Being put on an employee performance improvement plan is incredibly draining. It is common for employees to experience severe anxiety or burnout. In Alberta, you have the right to take a sick leave during a performance improvement plan if a medical professional deems it necessary.

Taking stress leave Alberta does not “cancel” the PIP, but it does pause it. Your employer can’t fire you for being on medical leave; doing so would be a violation of the Alberta Human Rights Act — and a human rights violation.


How to Survive and Fight a PIP

If you want to beat a performance improvement plan, you must become your own best advocate. Alberta courts look for documentation. Follow these steps:

  • Document Your Wins: Keep a daily log of how you are meeting the PIP goals.
  • Clarify Vague Goals: If a goal is “improve communication,” ask for specific performance improvement plan examples of what that looks like.
  • Request Resources: If you need software or training to hit a goal, request it in writing. If they refuse, it helps prove the PIP was unfair.
  • Prepare for the “PIP Conversation”: Every follow-up meeting should be followed by a summary email from you to your manager outlining what was discussed.

🔎 Learn more: A PIP is a major part of progressive discipline in Alberta. Understand the steps your employer must take before they can legally fire you for performance.


Get Legal Help Today

If you are struggling under an unfair performance improvement plan or have been fired after “failing” one, do not assume you have lost your right to severance pay Alberta. Our team can help you navigate the PIP performance improvement plan process in:

➡️ Contact Samfiru Tumarkin LLP today for a consultation to review your PIP and protect your severance rights.

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