Can you be dismissed for failing a Performance Improvement Plan (PIP)?
- Anne-Marie Dolan
- 4 days ago
- 6 min read
Updated: 2 days ago
If you’ve been placed on a performance improvement plan (PIP) at work, you may be worried that it means you are going to be fired. While it is a possible outcome, you do have rights and your employer must handle things appropriately for dismissal to be fair.
What is a PIP?
A performance improvement plan (PIP) is a formal tool your employer uses to ask you to improve your performance at work. According to Ministry of Business, Innovation & Employment (MBIE), it should:
A PIP is not automatically a step towards dismissal. It is meant to give you a fair chance to improve.
When Can a PIP Lead to Dismissal?
You can be dismissed if you fail a PIP, but the dismissal must be justified under New Zealand employment law. In order for a dismissal after a PIP to be lawful:
The reason must be good enough (substantive justification)
Your employer must have a genuine reason. Poor performance can be a legitimate reason, but only if it is fair and clear.
The process must be fair (procedural fairness)
Even if the reason is good, the employer must follow a fair process. That means you must know what’s expected of you, you must have been offered support, you must have been given a reasonable time to improve and the PIP must be based on what your job actually involves (not tasks unrelated. If underlying issues, such as personal health or workplace culture, are affecting performance, they should also be considered by your employer before they dismiss you. If the employer skips steps or is unfair, you may have grounds to say the dismissal was unjustified under the Employment Relations Act 2000 (ERA).
Dismissal should only occur after the PIP ends or following a proper review
Often the setting of a PIP is followed by a review meeting, and if goals are not met satisfactorily you may be given a warning. You may then have an extension to your PIP and if goals are still not met, you may be dismissed. If an employer tries to skip this sequence, or places you on a PIP and then immediately dismisses you without review, that can be unfair.
The dismissal must reflect what a fair and reasonable employer could do
If you have been dismissed following a PIP and claim unfair dismissal, the ERA will likely ask whether the employer’s actions were what a fair and reasonable employer could have done in the same situation. If not, it may be unjustified.
What should I do if I am put on a PIP?
If you are placed on a PIP, don’t panic. It doesn’t automatically mean you will lose your job. You should take it seriously though. Use the following checklist to protect your rights and set yourself up for a positive outcome.
Request a written copy of the PIP including objectives, time frame and support/training offered.
Ask for a meeting to clarify every part of it and take notes or record what is said.
Share your record of what was said, what you agreed to and what help you were promised with your manager/employer to ensure you are on the same page.
Ask for regular review meetings and make sure they happen.
Keep a personal journal or log of your progress, any challenges you face and if you request support.
If you feel the plan is unreasonable, raise your concerns in writing early. Don’t wait til the end of the PIP to speak up.
If you are dismissed, ask for the decision in writing and check whether you were given a chance to respond and whether the process was fair.
If you have any concerns that your PIP is unreasonable or the outcome is unfair, get in touch with a legal expert to help you understand your rights and plan your next move.
How Can an Employment Advocate Help You?
Engaging an advocate can make a big difference. Here’s how they can help:
Translate the law and process
They will explain in simple terms what the PIP process should look like and whether your employer is following it.
They can clarify your rights under the ERA and what “justified/unjustified dismissal” means in context.
Review the PIP & support offered
They can check whether the PIP is fair. They will look at whether the goals are clear and measurable, related to your role and whether the time frame is reasonable.
They will go through what support your employer has promised and see if it’s been delivered.
Help you strengthen your position
They help you gather evidence including emails, performance reviews, and meeting notes.
They help you prepare for review meetings or discussions with your employer.
They can attend meetings with you or act for you, giving you more confidence.
Guide you through next steps if things go wrong
If the process is unfair or you are dismissed or disadvantaged, your advocate can advise whether you have a personal grievance claim under the ERA.
They can help you prepare for mediation or raise a claim.
Level the playing field
When your employer has HR teams or lawyers, you might feel vulnerable. An advocate helps restore balance by making sure you are heard and treated fairly.
FAQs
If I fail a PIP can I always be fired?
Not always. You can be dismissed only if the employer had a good reason and followed a fair process. If the employer didn’t follow a fair process, you may have a claim for unjustified dismissal.
How long must a PIP run before dismissal is fair?
There’s no fixed number of days, but case law suggests you need reasonable time, depending on the nature of the job.
What if the employer sets impossible targets?
If the targets are unrealistic, or you cannot meet them because of factors outside your control, then the process may be unfair. You should raise this concern as early as possible in the process.
Can my employer skip the PIP and dismiss me straight away for performance?
They could, but it is risky. If they skip proper performance management and dismissal process, you may argue the dismissal is unjustified and you may bring a personal grievance.
What should I do if I believe the PIP is unfair?
Raise your concerns early, ask for clarification and keep documentation. Seek advice from an employment advocate to check whether you have a case.
When should I speak to an employment advocate?
It’s best to talk to an advocate as soon as you feel the process is going the wrong way. This might include, if:
your employer hasn’t provided promised support;
the PIP is vague or unreasonable;
they’re moving toward dismissal without review;
you feel disadvantaged compared with others.
If you’re on a PIP, it doesn’t necessarily mean you will be dismissed. A PIP is a tool your employer is using to try to help you meet the job standard. It becomes serious when you fail to meet the targets set and your employer wants to dismiss you. But for dismissal to be lawful, both the reason and the process must be fair and reasonable.
An employment advocate can be a powerful supporter for you, helping interpret the plan, challenge unfair aspects, and represent you if things go down a hard path. If you are on a PIP and feel that it may be unfair, or heading towards a dismissal, get in touch with an expert. Call Mathews Walker for a free consultation today. MathewsWalker.co.nz | 0800 612 355
Disclaimer: The information provided in this blog is for general informational purposes only and should not be considered legal advice. While we strive to keep the information accurate and up to date, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained on the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. For specific legal advice tailored to your situation, please contact a qualified legal professional.
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