How do I know if my Performance Improvement Plan is a sham?

Common sham PIP red flags: vague performance issues without specific examples; non-measurable targets ('improve communication'); unreasonably short timeline (under 4 weeks for most roles); no resources or training provided to meet targets; no opportunity to respond before the PIP was issued; being singled out while other underperformers aren't on PIPs; no support person allowed at meetings; no statement of consequences (i.e. dismissal) for failure. Three or more red flags strongly suggests the PIP is a pretext for managed exit.

Can I challenge a dismissal that follows a PIP?

Yes. The Fair Work Commission applies section 387 of the Fair Work Act 2009 when assessing whether a dismissal was 'harsh, unjust or unreasonable'. Factors include: was there a valid reason; was the worker notified; was opportunity to respond given; was a support person allowed; was the worker warned about unsatisfactory performance; were procedures appropriate to the size of the employer. A flawed PIP fails most of these tests. Lodge an unfair dismissal claim with the FWC within 21 days of termination.

What should I do during a PIP?

Engage in good faith but document everything. Respond to the PIP in writing — set out your view of the alleged shortcomings, request clarification on vague targets, ask for the resources you need to meet them. Bring a support person (friend, family, union official) to every meeting — that's a Fair Work Act right under s387(d). Don't admit to shortcomings you don't agree with. Don't resign. Save every email, every deliverable, every meeting note. If termination follows, this is your evidence base.

Should I resign during a PIP?

Almost never. Resigning during a PIP forfeits your unfair-dismissal eligibility, your notice pay, and any redundancy entitlement. If the PIP is heading to dismissal anyway, let the employer terminate — then you have 21 days to lodge an unfair dismissal claim, and the procedural flaws in the PIP itself become part of your evidence. The only situation where resignation might make sense: if you have a confirmed new offer and the existing PIP isn't going to result in compensation worth waiting for.

Is a PIP a precursor to being fired?

Often, yes — although in theory PIPs are about improvement, in practice many are issued as a procedural step toward dismissal. Around 60-70% of formal PIPs in Australian workplaces end in dismissal or resignation, according to HR research. Understanding this means engaging with the PIP carefully — show good faith, but document everything assuming you'll need it for an unfair dismissal claim. If the PIP itself is flawed (this tool's job), the dismissal at the end is challengeable.

PIP Audit Tool

Is your Performance Improvement Plan procedurally flawed enough that the dismissal at the end will be challengeable? Eight questions, built on the s387 factors the FWC weighs in unfair dismissal cases.

Last verified: 1 July 2025

Question 1 of 8

Are the performance issues clearly defined in writing?

A PIP must specify what's actually wrong — concrete examples of underperformance, with dates and contexts. 'Attitude problems' or 'not meeting expectations' is too vague. Courts have repeatedly struck down PIPs that don't articulate specific failings.

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General information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.

PIP Audit Tool

Are the performance issues clearly defined in writing?

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