Performance improvement plan (PIP)

A performance improvement plan is a written plan giving an employee clear goals, support and a timeline to bring their work up to standard.

Also called: PIP, performance plan, improvement plan

What performance improvement plan (PIP) means

A performance improvement plan, or PIP, is a written plan for an employee whose work is not meeting the standard. It sets out where they are falling short, what good performance looks like, the support you will give, and a fixed period to improve, with regular check-ins.

A PIP is for performance, not misconduct. An employee who is trying but struggling needs a different approach from one who is breaking rules on purpose. Used properly, a PIP is a real attempt to help the person succeed. Used as a box-ticking exercise before a decision you have already made, it rarely helps anyone and can look bad later.

How it works

Start with the facts. Pick 2 to 4 specific, measurable gaps, such as error rates, missed deadlines or customer complaints, with examples. Compare them to the job description and to what others in the same role achieve.

Set clear targets and a timeline long enough for real change to show in the work, which depends on the job. List the training, coaching or tools you will provide. Book check-ins, such as every week or two, and write a short note after each one about progress.

Ask early whether anything is affecting the person's work. A health condition, disability or family situation may change what support is needed, and your duty to accommodate under human rights law applies.

At the end, decide fairly. If the employee met the goals, say so in writing and close the plan. If they made progress, you may extend it. If they did not improve, you can end the employment without cause with proper notice or pay in lieu. Be careful about calling poor performance "cause": Ontario's Employment Standards Program says poor work that is accidental or unintentional is generally not wilful, so it usually does not remove the right to statutory notice.

Is it the same in every province?

PIPs are a management practice, not a legal requirement, and work the same way across Canada. Statutory notice and severance rules still apply if employment ends afterward, and in Nova Scotia an employee with 10 or more years of service can only be dismissed with good reason, which a documented PIP helps show.

Example: Missed deadlines at a Saskatoon bookkeeping office

Ana runs a 9-person bookkeeping firm in Saskatoon. A bookkeeper with 2 years' service is missing month-end deadlines for about a third of her clients. Ana sets up a 60-day PIP: all month-end files closed by the 10th, an error rate under the team average, and a weekly 20-minute check-in. She arranges extra software training.

In week three, the bookkeeper says she has been struggling with migraines. Ana asks what would help, and they agree on a quieter desk and a later start. By day 60, she is meeting every deadline. Ana closes the plan in writing.

Job descriptions in Staffkin

In Staffkin, each job has a job description attached that exports to Word, so the duties and standards you measure in a PIP match what the role actually is.

See the job description templates

Free tools and guides for this

Questions about performance improvement plan (PIP)

How long should a performance improvement plan last?

There is no legal length. Choose a period long enough for real improvement to show in the work, such as 60 days for a role with monthly deadlines.

Can I fire someone after a failed PIP?

Yes, but usually as a termination without cause, with notice or pay in lieu. Poor performance alone rarely meets the test for dismissal without notice.

Is a PIP the same as a written warning?

No. A written warning is discipline for conduct. A PIP is a support plan for performance. Some employers use both, but they serve different purposes.

Official sources

General information for Canadian employers, not legal advice. Rules differ by province and territory and change over time, so check with your provincial employment standards office (or the federal Labour Program if you are federally regulated) before you rely on it. See employment standards by province.

Checked against official sources on 4 November 2026.