Performance Review: Employee Rights

What is a performance review?

Performance reviews in Canada are a structured and regular assessment of an employee’s job performance and contributions within a company.

Are they mandatory?

No, performance reviews are not required by law in Canada. While many employers choose to conduct them for feedback and development, there is no legal obligation to do so.

How do they benefit an employee?

They typically occur annually or semi-annually, and they serve several purposes from an employee’s perspective:

• Feedback and Improvement: Performance reviews provide an opportunity for employees to receive feedback on their work, including strengths and areas that need improvement. This feedback can be valuable for personal and professional growth.
• Goal Setting: Employees can discuss their career goals, objectives, and expectations with their supervisors during these reviews. This helps align individual goals with company objectives.
• Recognition: Outstanding performance is often recognized and rewarded during these evaluations. This recognition can take the form of salary increases, bonuses, promotions, or additional responsibilities.
• Career Development: Performance reviews can also be a platform to discuss career development opportunities within the company, such as training, mentoring, or job rotations.
• Communication: They facilitate open communication between employees and management, allowing employees to express concerns, ask questions, or seek clarification on job expectations.

Why do employers use performance reviews?

Employers in Canada use performance reviews for various purposes. While many focus on constructive feedback and development, some employers may use them as a precursor to addressing performance issues and, in some cases, justifying termination.

Here’s how employers may utilize performance reviews:

• Identification of Performance Issues: One primary purpose of performance reviews is to identify and address performance issues. During the review, supervisors may highlight areas where an employee’s performance falls short of expectations or where improvement is needed.
• Performance Improvement Plans (PIPs): In cases where an employee’s performance is subpar, employers may introduce a Performance Improvement Plan (PIP) as part of the performance review process. A PIP outlines specific performance expectations, timelines, and support mechanisms to help the employee improve.
• Documentation: Employers often use performance reviews to document performance-related concerns and the steps taken to address them. This documentation can be essential if further action, such as termination, becomes necessary.
• Justification for Termination: While a single or multiple bad performance reviews are typically not sufficient grounds for termination with cause in Canada, poor performance documented over time may be used as a basis for justifying a termination without cause. Employers may rely on the documented history of performance issues, including performance reviews and PIPs, to demonstrate that they provided ample opportunity for improvement.

Do I get severance if I’m fired because of a bad performance review?

Yes, you are likely entitled to full severance pay if you are fired because of one or more bad performance reviews.

Employees are owed as much as 24 months’ pay in Ontario, Alberta and B.C. when they are fired without cause. In this form of termination, an employer can release an employee for any non-discriminatory reason, provided they offer appropriate compensation.

Employers often get it wrong

What employers can’t do is fire an employee “for cause” – without a severance package or EI – if they don’t have the appropriate grounds to do so.

Termination for cause is typically reserved for the most severe workplace transgressions, such as theft or insubordination. Consequently, most terminations of this kind are incorrectly applied by employers because the grounds for firing often do not meet the required threshold.

Fired due to a bad performance review?

If you find yourself facing termination after a failed performance review or PIP, the employment lawyers at Samfiru Tumarkin LLP can provide valuable assistance.

We are uniquely skilled in employment law and can help you understand your legal rights and entitlements.

Whether you’re negotiating a severance package, disputing the reasons for your termination, or seeking legal recourse for other reasons, our experienced team can provide expert guidance and representation to protect your interests during this challenging time. We have generated proven results for tens of thousands of clients since 2007.

From Ontario to Alberta and B.C., our employment lawyers are here to resolve your workplace concerns. If you’re a non-unionized employee who has lost your job, contact us online or at 1-855-821-5900 to get the advice you need and the compensation you deserve.