Facing a performance improvement plan (PIP)? Know your rights

Performance Improvement Plans are legal — but only if the targets are fair, the support is genuine, and the timescale is reasonable. When employers use PIPs as a managed exit rather than a real chance to improve, the dismissal that follows is often unfair.

On a PIP? Understand your rights before you respond

Know your PIP rights

Can I be dismissed at the end of a PIP?

Yes. If your employer concludes you have not met the targets set in the PIP, dismissal for capability is the usual outcome. However, the overall process — including the PIP itself — must have been fair. If it was not, you may have a claim for unfair dismissal.

Do I have to agree to a PIP?

You cannot refuse to engage with a capability management process, but you do not have to agree that the targets or assessment are fair. You should raise any concerns in writing during the process, as this creates a record.

Is a PIP always genuine, or can it be used to force someone out?

A PIP can be used as a managed exit route rather than a genuine performance support tool. Signs include: impossibly high targets, no real support, a very short timescale, or a PIP that follows you raising a grievance. If a PIP is a pretext, the resulting dismissal may be unfair.

Can I raise a grievance during a PIP?

Yes. If you believe the PIP is unfair, targets are unachievable, or you are being treated differently to colleagues, you can raise a formal grievance. This does not stop the PIP process but creates an important paper trail.

What is the time limit to claim unfair dismissal after a PIP?

3 months less one day from your dismissal date. You must also start ACAS Early Conciliation before filing, which can pause the clock.

Performance & Capability

Facing a performance improvement plan (PIP)? Know your rights

Last updated: April 2026

The legal reason — must be genuine, not pretextual

PIP objectives must be reasonable and achievable with support

Service required to claim unfair dismissal for capability

What makes a PIP process legally fair?

Under the Employment Rights Act 1996 and the ACAS Code of Practice on Disciplinary and Grievance Procedures, a fair capability process must include:

Red flags: signs your PIP may be a managed exit

If several of these apply, your dismissal may be unfair and possibly linked to whistleblowing or protected disclosures — claims that carry no compensation cap.

How to protect yourself during a PIP

What happens at the end of a PIP?

A performance improvement plan always has an end date — typically four to twelve weeks from the start. When that date arrives, your employer must hold an outcome meeting to review whether you have met the targets set out in the plan. What happens next depends on their assessment, but you have enforceable rights at every stage.

Outcome one: targets met

If your employer accepts that you have met the targets, the PIP closes and you return to normal employment — though the documentation often remains on your HR file. Some employers try to extend the plan or set fresh targets immediately; this can itself be evidence of bad faith if there is no genuine performance concern underlying the extension.

Outcome two: capability hearing

If your employer concludes that you have not met the targets, they should invite you to a formal capability hearing before taking any action. This is a separate meeting with proper notice, the right to be accompanied by a trade union representative or a workplace colleague under section 10 of the Employment Relations Act 1999, and the right to respond to the employer's concerns before a decision is made. Skipping straight from a failed PIP to dismissal — without a capability hearing — is almost always procedurally unfair.

Your right of appeal

Any dismissal following a PIP, whether for capability or conduct, must come with a right of appeal. The Acas Code of Practice on Disciplinary and Grievance Procedures requires this. If your employer dismisses you without offering an appeal, the employment tribunal can uplift any compensation award by up to 25 percent.

Settlement agreements and without-prejudice conversations

During or after a PIP, your employer may approach you about leaving on agreed terms — a settlement agreement (formerly a compromise agreement) or a "protected conversation" under section 111A of the Employment Rights Act 1996. A protected conversation cannot generally be used as evidence in an unfair dismissal claim, but it can be used if there is evidence of improper behaviour by the employer, such as undue pressure or discriminatory remarks. You cannot be forced to sign a settlement agreement, and you must take independent legal advice before it becomes binding.

If you believe the PIP was a pretext — designed to manufacture a reason for dismissal rather than to address genuine underperformance — the full paper trail, from the PIP targets through to the outcome meeting, becomes your evidence.

PIP and dismissal — common questions

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Employment Rights Act 1996

GOV.UK Employment Tribunals