A performance improvement plan (PIP) in Canada is a formal process an employer can use when it says an employee’s work is not meeting expectations. A PIP usually identifies performance concerns, sets goals for improvement and gives the employee a period of time to meet them.
Being put on a PIP is serious, but it does not prove that you are a poor performer. It also does not automatically give your employer cause to fire you without severance.
If you receive a PIP, take it seriously. Correct inaccurate allegations in writing, follow reasonable expectations, document your progress and don’t resign simply because you’ve been put on a performance plan.
On This Page:
- 1. What Is a Performance Improvement Plan?
- 2. Does a PIP Mean You’re Getting Fired?
- 3. Do You Have to Sign a PIP?
- 4. What If the PIP Is Unfair?
- 5. PIPs, Poor Performance & Just Cause
- 6. What Should You Do?
What Is a Performance Improvement Plan?
A PIP is a document or process used to identify alleged performance problems and tell an employee what the employer expects to improve.
A typical performance improvement plan includes:
- The performance concerns your employer says exist
- The standard you are expected to meet
- Specific goals or targets
- A deadline or review period
- Training, support or resources
- How your progress will be measured
- What can happen if your performance does not improve
A PIP can be a genuine attempt to correct a performance problem. It can also become part of the employer’s record if your performance is later used to justify discipline or termination.
Is a PIP the same as a performance review?
No. A regular performance review usually evaluates your work. A PIP is more serious because it identifies alleged problems and normally gives you specific requirements to meet within a set period.
Is a PIP a form of discipline?
It can be. A PIP can form part of an employer’s progressive performance-management or disciplinary process.
What matters most is what the document says. If it warns that failure to improve can lead to discipline or termination, treat that warning seriously.
Does a Performance Improvement Plan Mean You’re Getting Fired?
No. Being placed on a PIP does not automatically mean you are going to be fired.
But it does mean your employer considers the alleged performance concerns serious enough to document them formally.
Your employment can end after a PIP in two very different ways.
Termination without cause
An employer can terminate a non-unionized employee without cause as long as the dismissal is not illegal and the employer provides the proper notice or compensation.
The employer does not need to prove that you failed the PIP before ending your employment without cause.
A PIP also does not reduce your severance simply because it exists.
Learn more about termination without cause across Canada.
Termination for cause
Poor performance does not automatically give your employer just cause to fire you without common-law notice or severance.
The legal standard for cause is much higher than simply showing that an employee missed a target or received a negative performance review.
A PIP can help an employer document a performance problem and the opportunity it gave the employee to improve. It does not make the final result automatic.
Can you be fired immediately after a PIP?
Yes. Your employer can end your employment without cause and provide proper termination compensation.
If it wants to fire you for cause because of poor performance and deny common-law severance, it has a much more difficult case to prove.
Do You Have to Sign a Performance Improvement Plan?
You do not have to agree with performance allegations simply because your employer asks you to sign a PIP.
First, find out what your signature means.
If you are only being asked to confirm that you received the document, you can acknowledge receipt while making it clear that you do not necessarily agree with its contents.
For example, you can provide a separate written response correcting important facts or explaining where you disagree with the employer’s assessment.
If the document says your signature means that you agree with the allegations, admissions or new employment terms, don’t sign it until you understand the consequences.
What if you already signed the PIP?
Signing a PIP does not necessarily mean you permanently accepted every allegation in it.
Review what the signature actually acknowledged. If important information is wrong, respond promptly in writing and create an accurate record.
What Should You Do If the PIP Is Unfair?
If a PIP contains false or misleading allegations, respond to the important errors clearly and professionally in writing.
For example, correct the record if:
- The PIP claims you missed targets that you actually met
- Important successes or positive reviews have been ignored
- The goals are vague or impossible to measure
- Your targets are being changed during the PIP
- You were not given tools, information or training needed to do the work
- The employer blames you for problems outside your control
Focus on facts. Explain what is wrong, provide supporting documents and identify what you need in order to meet reasonable expectations.
Don’t accuse your employer of trying to fire you unless you have evidence. The immediate goal is to create a clear and accurate written record.
What if a disability is affecting your performance?
Your employer can’t fairly manage performance while ignoring a disability or medical restriction that affects your ability to do the job.
If a medical condition is affecting your work, tell the employer that accommodation is needed and provide reasonable information about your restrictions.
The employer can have a duty to accommodate you to the point of undue hardship. Accommodation can include modified duties, adjusted expectations, schedule changes or other reasonable measures.
Is an unfair PIP constructive dismissal?
A PIP by itself is not normally constructive dismissal. Employers are allowed to manage and evaluate employee performance.
The issue can change if the PIP is accompanied by a major pay cut, demotion, removal of significant duties or another fundamental change to your employment.
Don’t resign because you believe the PIP is unfair. Get advice first.
Can Failing a PIP Be Just Cause for Termination?
Failing a PIP does not automatically give your employer just cause to fire you without common-law notice or severance.
Where an employer relies on ongoing poor performance, important questions include whether:
- The required performance standard was clear and reasonable
- You were told exactly what needed to improve
- You knew continued poor performance could put your job at risk
- You were given a meaningful opportunity to improve
- Appropriate training, information or support was provided
- Your progress was assessed fairly
- Your performance remained seriously deficient despite that opportunity
A PIP can be evidence that some of those steps occurred. It is not proof that your employer completed them fairly or that cause exists.
Do you need several warnings before being fired?
There is no fixed number of warnings required before every termination.
An employer can terminate you without cause and provide proper compensation without going through a long disciplinary process.
Warnings become much more important when the employer wants to rely on repeated poor performance to justify firing you for cause.
Do you get severance after failing a PIP?
Yes, if your employer ends your employment without cause or can’t establish the legal standard needed to deny common-law notice or severance.
If you are terminated, don’t sign a release before having your full severance package reviewed—you may be owed as much as 24 months’ pay.
If your employer wrongly denies proper termination compensation after relying on the PIP, you can also have a wrongful dismissal claim.
What Should You Do If You’re Put on a PIP?
Take the PIP seriously, protect the written record and continue doing your job to the best of your ability.
- Read the entire plan. Understand every allegation, goal and deadline.
- Correct important inaccuracies. Respond professionally in writing and provide supporting documents.
- Ask for clear goals. You should understand how improvement will be measured.
- Ask for what you need. Identify missing training, information, resources or support.
- Document your progress. Keep records showing completed work, targets met and positive feedback.
- Raise medical issues. If disability is affecting performance, request accommodation.
- Keep working. Don’t resign simply because you believe the PIP is unfair.
- Get advice if termination is threatened. This is especially important if the PIP says failure will result in dismissal for cause.
Performance Improvement Plans by Province
The basic PIP principles are similar across common-law Canada, but termination and employment standards rules differ by province. For province-specific guidance, see:
Performance Improvement Plan FAQs
Can your employer put you on a PIP?
Yes. Employers are allowed to manage employee performance and set reasonable workplace expectations. You can still challenge inaccurate allegations, discriminatory treatment or unreasonable requirements.
How long does a PIP last?
There is no standard Canada-wide length for a PIP. A plan can last several weeks or several months depending on the job, the alleged performance problem and how long an employee reasonably needs to demonstrate improvement.
Can your employer extend a PIP?
Yes. An employer can extend the review period. If the deadline or targets are repeatedly changed in a way that makes success impossible, document what changed and when.
Should you quit if you’re put on a PIP?
No. Don’t resign simply because you’ve been placed on a PIP. Resigning can cause you to lose valuable severance rights. Continue working and get advice if you believe the employer has fundamentally changed your job or is preparing to fire you for cause.
Get Help With a Performance Improvement Plan
A PIP is serious, but it does not decide your future or erase your legal rights.
Samfiru Tumarkin LLP helps non-unionized employees respond to unfair performance allegations, protect the written record, address disability accommodation issues and challenge improper termination-for-cause decisions.
If a performance improvement plan leads to termination, our employment lawyers can secure the full severance pay and compensation you are legally entitled to receive.