Performance Improvement Plan (Ireland)

A Performance Improvement Plan in Ireland records an employer decision affecting an employee's engagement and the reasons and procedure followed, and is governed by the Employment Equality Acts 1998-2015.

The PIP is a critical component of the performance management and disciplinary framework in Ireland. The WRC Code of Practice on Grievance and Disciplinary Procedures (S.I. No. 146/2000) provides that employers should have clear standards of performance, that employees should be made aware of those standards, and that employees should be given a fair opportunity to improve before any formal disciplinary action is taken.

The Unfair Dismissals Acts 1977–2015 are directly relevant because a dismissal for poor performance that is not preceded by a fair and genuine performance management process is very likely to be found unfair. The WRC and Labour Court have consistently held that before an employer can fairly dismiss an employee for capability or competence reasons, the employer must demonstrate that the employee was made aware of the performance shortfall, was given a reasonable opportunity to improve with appropriate support, and was warned that failure to improve could result in dismissal. Under section 7 of the Unfair Dismissals Act 1977, the maximum compensation for unfair dismissal is 104 weeks' (two years') remuneration — rising to 260 weeks' (five years') remuneration where the dismissal is connected to a protected disclosure under the Protected Disclosures Acts 2014–2022. Remuneration for these purposes includes salary, allowances, bonuses, and benefits in kind.

The PIP serves as the formal mechanism through which the employer satisfies these requirements. It creates a documented record of the performance concerns, the objectives set, the support provided, the progress made (or not made), and the outcome. This documentation is essential evidence in any subsequent WRC or Labour Court proceedings.

A PIP should be a genuine and good-faith effort to help the employee improve, not a procedural exercise designed to create a paper trail for a predetermined dismissal. The WRC has criticised employers who use PIPs as a mere formality and has found dismissals unfair where the PIP process was not conducted genuinely.

In addition to the Unfair Dismissals Acts 1977–2015, the Employment Equality Acts 1998–2015 are relevant to PIP processes. An employer must confirm that the decision to issue a PIP and the manner in which the PIP is conducted do not amount to discrimination on any of the nine protected grounds — gender, civil status, family status, sexual orientation, religion, age, disability, race, or membership of the Traveller community. A PIP issued selectively — for example, targeting an employee because of their age or disability — may give rise to a discrimination claim before the WRC, even if the employer can otherwise demonstrate that the performance concerns were genuine.

Where the employee's performance issues may be linked to a disability or to health difficulties, the employer's duty of reasonable accommodation under section 16 of the Employment Equality Acts 1998–2015 is particularly important. Before or during a PIP, the employer should consider whether the employee's underperformance is related to a health condition, and if so, whether reasonable accommodation measures could enable the employee to meet the required standard. Failure to consider reasonable accommodation before commencing a PIP or a dismissal process for performance reasons can expose the employer to a disability discrimination claim.

Employers should also be alert to the risk that an employee placed on a PIP may raise a grievance, alleging that the PIP itself is unfair, discriminatory, or amounts to bullying or harassment. The employer should confirm that the PIP process is conducted in a respectful, supportive, and professional manner, and that any grievance raised by the employee is dealt with through the employer's grievance procedure separately from and without prejudging the outcome of the PIP.

The GDPR and Data Protection Act 2018 require employers to handle performance-related personal data carefully. PIP documents contain sensitive personal information about the employee's performance and capabilities. Access to PIP records should be restricted to those with a genuine need to know, PIP documents should be retained only for as long as necessary, and the employee has the right to access their PIP documentation under Article 15 of the GDPR.

An Irish Performance Improvement Plan is needed whenever an employee's performance falls significantly below the required standard and informal feedback or coaching has not resulted in sufficient improvement.

You need a PIP when you are: managing an employee whose performance has been consistently below expectations despite informal feedback; addressing specific, measurable performance shortfalls that need to be corrected within a defined timeframe; following up on a verbal or written warning related to performance; preparing to demonstrate that the employer has followed fair procedures before any potential dismissal for capability reasons; or responding to a situation where the employee's underperformance is affecting the team or the organisation's operations.

The PIP should be implemented after the employer has first attempted to address the performance concerns informally (through feedback, coaching, or counselling) and those informal efforts have not produced the required improvement. The PIP represents the formal escalation of the performance management process.

A PIP should not be used as a disciplinary sanction — it is a supportive tool designed to help the employee achieve the required standard. However, the consequences of failure to improve (which may include formal disciplinary action up to and including dismissal) should be clearly communicated to the employee.

A PIP is also needed at the end of a probationary period where the employee has not met the required standards during probation. In Ireland, probationary dismissals are subject to particular procedural requirements following the Supreme Court decision in Donal Burke v College of the Immaculate Virgin Mary and others [2022] IESC 40 and the enactment of the Employment (Miscellaneous Provisions) Act 2018, which requires that any dismissal during probation must still be for a fair reason and follow a fair procedure. A probationary PIP provides a structured framework for giving the employee a final opportunity to meet the required standard before a probationary dismissal is considered.

Where the employee has been absent for a significant period on sick leave and there is uncertainty about when or whether they will return to full performance, a PIP may be part of a broader capability management process. In these circumstances, the employer must first obtain medical evidence about the employee's condition and prognosis before implementing a PIP, and must consider whether reasonable accommodation under the Employment Equality Acts 1998–2015 is available before concluding that the employee cannot meet the required standard.

For employees with more than one year of continuous service — who have the protection of the Unfair Dismissals Acts 1977–2015 — the WRC will examine in any unfair dismissal case whether the employer issued a PIP, whether the objectives were fair and achievable, whether adequate support was provided, and whether the employee was warned that failure to improve could lead to dismissal. Employers who skip the PIP stage and dismiss directly for poor performance run a significant risk of an unfair dismissal finding.

Under the Employment Equality Acts 1998-2015, enforced by the Workplace Relations Commission (WRC), parties to this agreement retain rights under the Unfair Dismissals Acts 1977-2015 and the Organisation of Working Time Act 1997. Section 8 of the Unfair Dismissals Act 1977 grants the WRC adjudication officers jurisdiction to hear claims. The Data Protection Act 2018, implementing GDPR in Ireland, governs personal data processed under this agreement. Revenue Commissioners require PAYE/PRSI compliance for all employment arrangements.

A thorough Irish Performance Improvement Plan should contain several essential elements to confirm fairness, clarity, and compliance with the WRC Code of Practice.

The employee and role details section should identify the employee, their job title, department, and line manager, and the date the PIP is issued. It should also state the employee's length of service, which is relevant to assessing the time and support that should reasonably be provided during the PIP.

The performance concerns section should clearly describe the specific areas where the employee's performance is not meeting the required standard, with reference to the job description, performance targets, or other documented expectations. The concerns should be factual and evidence-based, and should refer to specific incidents, output metrics, or quality standards that have not been met. Vague or subjective descriptions of performance concerns undermine the PIP's effectiveness and credibility before the WRC.

The objectives section should set out clear, specific, measurable, achievable, relevant, and time-bound (SMART) objectives that the employee must achieve during the PIP period. Each objective should have a clear success criterion and a deadline. The objectives should be achievable within the PIP timeframe — unrealistic objectives that could not reasonably be met have been criticised by the WRC as evidence of bad faith.

The support and resources section should describe the specific support the employer will provide, including training, coaching, mentoring, workload adjustments, or additional resources. This section is particularly important for demonstrating to the WRC that the PIP was a genuine attempt to help the employee improve, rather than a predetermined exercise.

The review schedule section should specify the dates and frequency of review meetings during the PIP period (typically weekly or fortnightly), the person who will conduct the reviews, and the process for documenting progress at each review. Review meetings should be documented in writing and copies provided to the employee promptly after each meeting.

The duration section should state the total length of the PIP and the final review date. Common durations are 30, 60, or 90 days, depending on the complexity of the performance issues and the time realistically needed for improvement.

The right to be accompanied section should inform the employee of their right to be accompanied at formal PIP meetings by a trade union representative or a work colleague, in accordance with the WRC Code of Practice on Grievance and Disciplinary Procedures (S.I. No. 146/2000). Denial of this right may render any subsequent dismissal procedurally unfair.

The consequences section should clearly state the potential outcomes at the end of the PIP: successful completion (PIP ends and the employee returns to normal performance management), partial improvement (PIP may be extended), or failure to improve (which may result in formal disciplinary action up to and including dismissal). The language must be clear and unambiguous — the employee must understand that their employment is at risk if they do not improve.

The employee acknowledgement section should include a space for the employee to sign acknowledging receipt of the PIP. The employee should be informed in writing that signing acknowledges receipt, not agreement with the assessment, and that they are entitled to provide a written response.

The right to respond section should inform the employee that they may provide a written response to the PIP and may raise any concerns through the employer's grievance procedure without prejudice to the PIP process. The forms-legal.com Performance Improvement Plan (Ireland) template covers the mandatory elements under Employment Equality Acts 1998-2015.