FAQ: I’ve been put on a Performance Improvement Plan (PIP) - do I need Legal Help?

Being placed on a Performance Improvement Plan (PIP) can feel like a turning point in your job.  Sometimes a chance to reset, and sometimes the beginning of the end. In New Zealand workplaces, a PIP is meant to help employees improve. But not every PIP is fair, reasonable, or lawful.  So how do you tell the difference? And when should you push back, or get legal advice?

What is a Performance Improvement Plan (PIP) for?

A well executed PIP should:

• Clearly explain performance concerns,

• Give you a fair chance to improve,

• Provide support, training, or guidance, and

• Set measurable goals within a reasonable timeframe

Done properly, a PIP is part of an employer’s duty to act in good faith and help maintain the employment relationship.  But in practice, some PIPs are poorly handled, or used as a step toward dismissal rather than improvement.

What are the warning signs that I might need legal help?

There are situations where a PIP crosses the line from fair management into something potentially unjustified or unfair.  Here are some red flags.

1. The PIP came out of nowhere

If performance concerns were never raised before, a sudden PIP can be problematic.  Under the Employment Relations Act 2000, employers must act in good faith. That usually means raising concerns early, and giving you a chance to improve before formal action.  A surprise PIP can suggest the process is not genuine.

2. The expectations are vague or unrealistic

You should be able to clearly understand what you need to improve and how success will be measured.  If your PIP includes goals like ‘Improve attitude’ or ‘Be more proactive’ without explanation or measurable outcomes, it may not be fair.  Even worse is when expectations are impossible to meet within the timeframe given.

3. You’re not being given real support

A PIP should not be a set-up to fail.  Ask yourself - Have you been offered training? Are there regular check-ins scheduled?  Is your manager available to guide you?  If the answer is no, the employer may not be meeting their obligations to act constructively.

4. The timeframe is too short

Improvement takes time, especially in complex roles.  A PIP lasting only a few weeks for significant issues could be unreasonable. A fair employer should allow enough time for meaningful improvement.

5. The process feels predetermined

One of the biggest warning signs is when it feels like the outcome has already been decided.  There may be comments suggesting you won’t succeed, a lack of genuine engagement with your responses to the PIP, or your manager may be ignoring improvements you’ve made.  If the employer is not keeping an open mind, that may breach fair process requirements.

6. Others are treated differently

If colleagues with similar performance issues are not put on PIPs, or are treated more leniently, this raises concerns about consistency and fairness.

When should I speak up?

You don’t have to wait until the end of a PIP to raise concerns.  In fact, early action is often the best approach.  You might consider speaking up when:

• The expectations are unclear,

• The timeframe seems unrealistic,

• You’re not getting support, or

• You believe the concerns are inaccurate.  

You could start by asking for clarification of the expectations in writing.  You could also raise concerns with your manager or HR and bring a support person to meetings to check if your concerns are legitimate.  This shows you are engaging in good faith, and creates a record of your concerns.

When is it time to get legal help?

Not every PIP requires a legal representative. But some situations make legal advice much more important.

1. Dismissal is being discussed or hinted at

If your employer indicates that failure to meet the PIP could lead to dismissal, the stakes are high.  At this point, an employment advocate can help you understand your rights, ensure the process is fair, and respond effectively.  

2. The process feels clearly unfair

If multiple red flags are present such as no prior warnings, unrealistic expectations, and/or no support for improvement,  it may be worth getting advice early.

3. You believe the PIP is a paper trail for termination

Sometimes PIPs are used to justify a pre-decided dismissal.  An employment advocate can help assess whether:

• The employer has acted in good faith,

• The process meets legal standards, and

• If you have grounds for a claim.  

  
  

4. You’re being pressured or treated poorly

If the PIP process involves bullying behaviour, excessive scrutiny and/or unreasonable pressure, this may go beyond performance management and into other legal issues.

What legal protections do I have?

The key law governing these situations is the Employment Relations Act 2000.  Under this law, employers must:

• Act in good faith,

• Be fair and reasonable in all actions, and

• Follow a proper process before making decisions that could affect your employment.  

If they don’t, you may be able to raise a personal grievance for unjustified disadvantage or unjustified dismissal.  

FAQs

Can I refuse to go on a PIP?

You can raise concerns about it, but outright refusal is risky. It’s usually better to engage while clearly documenting any issues with the process.

Can I bring a support person to PIP meetings?

Yes. Especially where the process could affect your employment, you are generally entitled to bring a support person or representative.

How long should a PIP last?

There’s no fixed rule, but it must be reasonable. Short timeframes for complex issues may be unfair.

What if I meet the PIP goals but still get dismissed?

This could raise serious legal concerns. If you’ve met the agreed expectations, dismissal may be unjustified.

Can I challenge a PIP after it ends?

Yes. If the process was unfair or led to disadvantage (or dismissal), you may still be able to raise a personal grievance.

Do I need a legal representative to challenge a PIP?

Not always. Many issues can be raised directly. But legal advice is helpful where the situation is serious or unclear.

Is a PIP always a sign I’ll be fired?

No, but it can be in some cases. The key question is whether the employer is genuinely trying to help you improve.

A PIP is not automatically a bad thing, but it must be fair, reasonable, and genuine.  If you’re facing a PIP, the most important thing is to understand your rights, stay engaged in the process, and speak up early if something doesn’t feel right.  If you are on a PIP, and it isn’t feeling fair, get in touch today for a free consultation.  MathewsWalker.co.nz | 0800 612 355

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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.