What makes a PIP genuine rather than a sham?

A genuine PIP has: specific performance concerns with examples and dates; goals with objective measures the employee can check themselves against; real support (training, check-ins, resources) that is actually delivered; a reasonable duration (4 weeks is the practical floor, 8-12 for complex roles); scheduled reviews that are held and recorded; and an outcome that is genuinely open. If a dismissal follows, the Fair Work Commission assesses it under section 387 of the Fair Work Act 2009 — valid reason, notification, opportunity to respond, support person, and warning about unsatisfactory performance. A PIP built to fail — vague targets, no support, a timeline nobody could meet — is treated as a pretext for a predetermined dismissal and undermines the employer's defence instead of supporting it.

How long should a PIP run?

Four weeks is the practical minimum, and only for simple, clearly measurable issues. Six to eight weeks is typical; eight to twelve weeks suits complex roles or genuine skills development. The duration must give the employee a realistic chance to demonstrate sustained improvement — an unreasonably short PIP reads as a predetermined outcome, which is exactly what the Fair Work Commission looks for when deciding whether a later dismissal was harsh, unjust or unreasonable under s.387.

Can an employee refuse to sign a PIP?

Yes — you cannot force a signature, and you should not treat refusal as misconduct. The acknowledgement block in this template records receipt of the plan, not agreement with its contents, and says so explicitly. If the employee still declines to sign, note on the document that it was discussed and a copy provided on the date, have the manager sign, and proceed with the plan. The employee's written response (many use a PIP response letter) should be kept on file with the plan.

Does a PIP have to happen before dismissing someone for poor performance?

The Fair Work Act does not mandate a document called a 'PIP'. But for a performance dismissal to survive an unfair-dismissal claim, s.387(e) asks whether the person was warned about unsatisfactory performance before dismissal, s.387(b) whether they were notified of the reason, and s.387(c) whether they had an opportunity to respond. In practice that means a clear warning plus a genuine opportunity to improve against known expectations. A documented PIP — concerns, measurable goals, support, timeframe, reviews — is the cleanest evidence that all of that happened.

What happens if performance doesn't improve during the PIP?

Hold the final review as scheduled. Put the shortfalls against each measure to the employee, along with the proposed outcome, and give them a real opportunity to respond — with a support person if they want one (s.387(d)). Consider the response before deciding: options include extending the plan, redeployment, or termination with notice. Poor performance is not serious misconduct, so summary dismissal is not available — the employee is entitled to notice under the NES or their contract, whichever is greater. Do not decide the outcome before the final review; a predetermined decision is what turns a PIP into evidence against you.

Performance Improvement Plan Builder (Australia 2026)

Free template for a complete, procedurally fair PIP: specific concerns, goals with objective measures, support commitments, a review schedule, possible outcomes stated once, and the acknowledgement and support-person blocks. Not legal advice.

Last verified: 21 May 2026

A genuine PIP has specific concerns with examples, goals with objective measures, real support, a reasonable duration, scheduled reviews, and outcomes stated once — factually. This builder covers all of these, plus the acknowledgement signature block and the support-person entitlement.

Company and manager

Company nameManager nameThe manager who will run the plan and the reviews

Employee

Employee namePositione.g. Accounts Officer

Performance concerns

Performance concerns (one per line)Specific and observable — dates, examples, numbers. Vague concerns are the first thing the Fair Work Commission picks apart.

The plan

Improvement goals (one per line)One goal per line. Add the measure of success after a pipe "|". Goals without an objective measure are a sham-PIP red flag.Support to be provided (one per line)Training, check-ins, resources — named, dated, and deliverable. If the employee is set up to fail, the plan isn't genuine.

PIP durationUnreasonably short PIPs read as a predetermined outcome — the FWC treats sham process as evidence the dismissal was unfair. Four weeks is the practical floor.Review meeting cadenceEvery review must be held and recorded in writing — skipped reviews undermine the plan.

First review dateDiarise every review meeting when you issue the plan

The FWC punishes sham PIPs

When a dismissal for poor performance is challenged, the Fair Work Commission assesses it under section 387 of the Fair Work Act 2009: valid reason, notification, opportunity to respond, support person, and whether the person was warned about unsatisfactory performance. A genuine PIP is strong evidence on every one of those factors. A sham PIP — one run as a procedural formality on the way to a decision already made — flips it: the plan itself becomes evidence the outcome was predetermined. The common tells:

Vague concerns. "Attitude" and "communication" without dates, examples, or numbers.
Goals nobody can measure. If the employee can't tell whether they've met a goal, neither can the reviewer — which makes the outcome a matter of opinion.
Support promised, never delivered. Training that never gets booked, check-ins that get cancelled.
An unreasonably short timeline. Two or three weeks to turn around months of alleged underperformance reads as a plan built to fail.
Reviews skipped or unrecorded. If the reviews didn't happen in writing, they didn't happen.
The decision made before the final review. Advertising the role, briefing a replacement, or drafting the termination letter mid-plan.

Expect a written response to the plan — many employees reply using a PIP response letter asking for measurable targets and support in writing. That's engagement, not defiance: consider the response, answer it, and keep both on file with the plan.

Before you issue it

Check your PIP would survive the audit the FWC applies. The PIP Audit tool runs the eight s.387-based tests workers (and their lawyers) use to pick a plan apart — if it flags yours, fix the plan before it goes out.

Unfair Dismissal in Australia: How to Know If You Have a Case

Was your dismissal unfair? Learn the eligibility rules, 21-day deadline, high income threshold ($190,100), remedies, and how to apply to the Fair Work Commission.

Unfair Dismissal Australia — Can I Claim? Full Guide (2026)

Everything you need to know about unfair dismissal in Australia. Eligibility, how to lodge a claim with the Fair Work Commission, time limits, remedies, and what to expect.

Unfair Dismissal Australia: Time Limits, Eligibility & How to Claim

Complete guide to unfair dismissal claims in Australia. Covers eligibility requirements, the strict 21-day time limit, the Fair Work Commission process, remedies including reinstatement and compensation, and the small business fair dismissal code.

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