When a line manager says, 'I want this person out, let’s put them on a PIP,' your HR alarm bells should ring. Performance Improvement Plans are meant to salvage talent, not act as a legal shortcut to termination. If handled aggressively, a PIP can easily breach the implied term of mutual trust and confidence, handing the employee a watertight case for constructive unfair dismissal at an employment tribunal. Here is my guide on how HR can keep performance management legal, effective, and humane.


Section 1: The Legal Reality


Under UK employment law, capability is a fair reason for dismissal, but the process must be flawlessly fair:

  • The Implied Term Breach: The case law is clear. Initiating a formal performance process without objective evidence, or setting unachievable targets, destroys the employment relationship. This allows employees with over two years of service (soon to be 6 months) to resign and claim constructive dismissal.
  • The Discrimination Overlay: A sudden drop in performance could be a symptom of an underlying health condition, neurodivergence, or menopause. If a PIP fails to account for this, you risk facing a tribunal claim for disability or sex discrimination, where compensation limits are entirely uncapped.
  • The Paper Trail Standard: Tribunals look at the intent behind the process. If your notes show that a manager had already decided the outcome before the PIP even ended, the business will lose.


Section 2: The Unsalvageable PIP


Over the last 30 years, I’ve seen the PIP used as a shield, a tool, and, unfortunately, a corporate weapon.


Early in my career, I remember a department head who proudly told me they had a 100% 'success rate' with PIPs—meaning every single person placed on one left the business. With some trepidation I supported them with a case of a new recruit who 6 months in seemed to be struggling.  It was clear from the prep sessions that the department head had already decided they were out, but understood that some process needed to be followed.  They also let me know they were pretty confident the recruit would resign before they had to get into the details.


It turned out the department head didn’t know that new recruit as well as they thought.  They turned up well prepared and engaged fully with the meeting, asked for clear direction and measurements and had definitely done all their homework.  A few weeks in, the department head had to agree that there was no way an exit would now be an option.  The recruit kept going with the process, whilst looking externally and before the next milestone resigned and joined a neighbouring organisation.  His impression of our company was extremely negative, and the team’s impression of the PIP process was even worse.


The department head saw this as a success, but I knew it was a failure of process, that young lawyer could have been successful if an honest conversation had happened earlier, and if there manager had done their job to be clear on the role from the start and to support them to be successful.  It was a time consuming, sobering and expensive process for all concerned.


Section 3: The Culture Challenge


The cultural battle lies in moving managers away from the "tick-box" mentality:

  • The Defensive Reaction: Managers often wait until they are completely frustrated with an employee before telling HR. By then, they don't want to manage performance; they just want a quick exit strategy.
  • The PIP Stigma: In many UK workplaces, being put on a PIP is culturally viewed as a death sentence. This triggers immediate stress leave, formal grievances, and a total shutdown of communication.
  • The Burnout Factor: When a PIP is used punitively, it creates a culture of fear. Surrounding team members watch how their colleague is treated, causing psychological safety and trust in leadership to plummet.


Section 4: What HR can do today


To ensure your performance management process builds capability instead of legal liability, implement this 3-step framework:


  • Rebrand it - change the language from PIP to success plan (or something suitable for you)
  • Seek out and celebrate successes in using the process (and I’m talking here about people who have improved and stayed)
  • Mandate a "Pre-PIP" Informal Stage
  • Enforce a strict rule that no employee goes onto a formal PIP unless there is documented evidence of an informal "support phase" lasting at least 4 to 6 weeks.
  • Give the employee a genuine, low-stakes chance to improve without the terrifying shadow of a formal HR process over their head.


The "Smart & Realistic" Target Audit


  • HR must independently review every single objective written into a PIP before it is handed to the employee.
  • The Test: Ask yourself: Could a top performer in this team realistically achieve this target in 30 days while handling their normal workload? If the answer is no, redraft it.
  • Equip Managers with the "Root Cause" Script
  • Train your line managers to stop asking "Why are you failing?" and start asking strategic, adult-to-adult questions.
  • Use prompts like: "I’ve noticed a drop in your output lately. Is there anything happening inside or outside of work that is impacting you, and what adjustments do you need from me to get back on track?" This simple shift explicitly protects the business against discrimination claims.


A successful PIP shouldn't end in an exit; it should end in an improved employee and a stronger relationship. When HR teams coach managers to view performance through the lens of capability and support, rather than compliance and punishment, we protect the business and build a culture of integrity.



Photo by Nadine E on Unsplash