Employers can fire an employee while they are on a performance improvement plan. A PIP does not give the employee a contractual right to remain employed for its full duration. Risk depends on whether the employer genuinely tried to help the employee improve or simply went through the motions before doing what they had already decided to do.
Why a PIP does not protect continued employment
A PIP is a management tool and not a binding agreement. It sets expectations and timelines, but it does not override the employer’s right to act when performance or conduct falls short. If a serious problem arises during the PIP period, such as misconduct or a safety issue, the employer does not have to wait until the plan ends to respond.
When firing during a PIP is typically defensible
- The employee fails to meet clearly defined milestones within the stated timeframe.
- The employee breaks a policy or commits new misconduct during the PIP period.
- The employee disengages from the process or refuses to participate in check-ins.
- Records show the employer was thorough with the expectations.
In each case, the employer stands strongest when the record is thorough. HR teams often review PIP alternatives to compare approaches before they start a formal plan.
When risk increases
- The employer fires the employee very early in the PIP with no documented failure to improve.
- Goals were vague, unrealistic, or changed after the plan started.
- The employer treated similar cases differently without a clear reason.
- The employer issued the PIP after the employee raised a complaint or exercised a protected right. This could involve a retaliation claim.
These patterns tend to suggest the employer was not acting in good faith. If a fired employee files a claim, agencies like the EEOC may examine whether the employer handled comparable situations the same way.
What HR teams typically verify before approving a firing
- PIP goals were specific, measurable, and communicated in writing.
- Managers held regular check-ins and documented them.
- Why the employer is firing the employee connects directly to what the PIP laid out, or to a new, documented issue.
- The employer handled similar cases the same way.
A note for US employers who hire in the UK
Unlike US at-will employment, UK employers who fire staff mid-PIP for performance issues might have to deal with dismissal penalties for employees with over two years of service.
TL;DR
- Employers can fire an employee during a PIP, since a PIP does not give the employee a contractual right to remain employed for its full duration.
- The employer stands strongest when the record is thorough, the employer treated similar cases the same way, and the employer genuinely tried to help the employee improve.
- Risk increases when goals are vague or when the employer issues the PIP after the employee has raised a protected complaint.