You have received a PIP: what should you do now?

Receiving a Performance Improvement Plan (“PIP”) can be stressful. You may disagree with the criticism, worry that your employer has already decided to dismiss you, or simply not know how to respond.

A PIP does not automatically mean that you will lose your job. Under Dutch employment law, an employer who believes that an employee is underperforming generally has to give that employee a genuine opportunity to improve before dismissal can be considered.

How you deal with the PIP can therefore be important. Here are some practical steps you can take.

1. Do not refuse the PIP simply because you disagree

You may strongly disagree with your employer’s assessment of your performance. Nevertheless, simply refusing to participate in the PIP is usually not advisable.

Your employer is entitled to assess your performance and give reasonable instructions on how you should improve. Refusing to cooperate may therefore work against you later.

You can participate in the PIP without agreeing with the criticism. Make your position clear in writing and explain which points you disagree with and why.

2. Check whether the PIP is clear and realistic

A proper PIP should tell you what your employer expects you to improve. General statements such as “show more leadership”, “communicate better” or “be more proactive” may be difficult to assess without further explanation.

Ask yourself: Do I know exactly what I need to do differently and how my employer will decide whether I have improved?

The improvement areas should be concrete, measurable, realistic and relevant to your position. If they are not, ask your employer to clarify them before or at the start of the PIP.

3. Ask what support you will receive

A PIP is not simply a list of targets that you are expected to achieve on your own. Your employer should actively support you in improving your performance.

Depending on the circumstances, this could include additional guidance from your manager, training, coaching, mentoring or more frequent feedback.

If you believe you need specific support to achieve the objectives, ask for it – preferably in writing.

4. Make sure you have enough time to improve

There is no standard legal duration for a PIP. Depending on the circumstances, improvement periods of several months or longer may be appropriate.

The important question is whether you are genuinely being given enough time to demonstrate sustainable improvement.

If your employer gives you only a very short period to improve on issues that realistically require much longer, raise this at the beginning rather than waiting until the PIP has failed.

5. Keep your own written record

Do not rely solely on the reports prepared by your manager.

Keep copies of the PIP, emails, performance reviews and interim evaluations. After important meetings, consider sending a short email confirming what was discussed, particularly if you disagree with the employer’s version of events.

Also keep evidence of positive feedback, successfully completed projects and targets you have achieved. This can become important if there is later a disagreement about whether you successfully completed the PIP.

6. Speak up if the PIP is not going well

A PIP should normally include regular evaluation meetings. Use these meetings to ask for specific feedback: What is going well? What still needs to improve? Are you on track?

If expectations suddenly change, new targets are added or you are not receiving the promised support, do not wait until the final evaluation to raise this.

Put your concerns in writing. This creates a clear record that you identified problems with the process while there was still an opportunity to address them.

7. Be careful if your employer proposes a settlement agreement

Sometimes an employer introduces the possibility of terminating the employment relationship during a PIP and offers a settlement agreement.

You do not have to accept this.

If the PIP has only just started, or if you have not been given a genuine opportunity to improve, this can be relevant when assessing your legal position and negotiating the terms of a possible settlement.

Before signing anything, consider having the settlement agreement and the PIP documentation reviewed by an employment lawyer.

What if you do not successfully complete the PIP?

An unsuccessful PIP can ultimately lead to dismissal, but dismissal is not automatic.

Your employer must be able to show that there was genuine underperformance, that you were clearly informed about it and that you received a realistic opportunity and sufficient support to improve. Your employer must generally also investigate whether you can be redeployed to another suitable position within the company.

That is why your conduct during the PIP matters. Cooperate with the process, ask questions, request support and document your position. Even if you disagree with the PIP, you can protect your position while continuing to demonstrate that you are willing to improve.

More information

Do you have questions regarding a Performance Improvement Plan (PIP)? Or do you have other employment law questions? Please feel free to contact us.