A performance improvement plan (PIP) is typically a step in a progressive discipline policy—one that shouldn't be rushed into too quickly or used for all types of performance deficiencies.
If the performance failure is a one-time event, it may be too soon to implement a PIP, said Katherine Rigby, an attorney with Epstein Becker Green in Boston. "However, if an employee is experiencing repeated or multiple performance deficiencies, a properly structured PIP can effectively provide the necessary road map and support to meet performance objectives."
Immediate termination may be appropriate for egregious misconduct. If implementing a PIP, employers should clarify the plan doesn't change the at-will nature of employment.
"A PIP should be used primarily to facilitate improved performance by identifying deficiencies while providing an opportunity for improvement and success," said Timothy Ford, an attorney with Einhorn Barbarito in Denville, N.J. "At the same time, a properly drafted and implemented PIP can serve to justify legitimate business reasons for termination and provide evidence of performance-related issues and failure to improve."
Progressive Discipline
A progressive discipline policy often has four or five steps, Ford said:
A PIP is part of the written reprimand phase.
Drafting Tips
When drafting PIPs, the objectives should...
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