Performance Improvement Plan (UAE)
PERFORMANCE IMPROVEMENT PLAN
Employer: [Company Name]
Employee: [Employee Name] | Employee ID: [Employee ID]
Job Title: [Job Title] | Department: [Department]
Line Manager: [Line Manager]
PIP Period: [PIP Start Date] — [PIP Duration] from start date
This Performance Improvement Plan (PIP) is issued under [Company Name]'s internal performance-management policy and Federal Decree-Law No. 33 of 2021 on Regulation of Labour Relations (the UAE Labour Law). The PIP is not a disciplinary sanction under Article 60 of the Labour Law. Its purpose is to provide structured support to [Employee Name] to enable sustained improvement in the areas identified below. Failure to meet the targets set out in this PIP may, however, form the basis for further action under the Company's disciplinary procedure.
1. PERFORMANCE CONCERNS
The following specific performance concerns have been identified through performance reviews, management observation, and/or documented outcomes. These concerns have been discussed with [Employee Name] in the meeting on [PIP Start Date]. [Performance Concerns] These concerns represent a material deviation from the performance standards expected of the [Job Title] role and from the obligations under [Employee Name]'s employment contract registered with MOHRE (the Ministry of Human Resources and Emiratisation). The employer acknowledges that [Employee Name] has been given an opportunity to respond to these concerns before this PIP was finalised.
2. MEASURABLE IMPROVEMENT TARGETS
To successfully complete this PIP, [Employee Name] must achieve the following measurable targets within the [PIP Duration] PIP period: [Improvement Targets] All targets are objective and measurable. Progress against each target will be assessed at the formal review dates in Section 4 and at the conclusion of the PIP period. The targets set out above reflect the standard expected of a competent holder of the [Job Title] role and are consistent with the terms of the employment contract.
3. SUPPORT AND RESOURCES
[Company Name] will provide the following support to assist [Employee Name] in meeting the improvement targets: [Support Provided] The employee is encouraged to raise any concerns about the targets or the support provisions with [HR Manager] at [HR Email] at any time during the PIP period. Failure to access or utilise available support will not be accepted as a reason for failing to meet PIP targets.
4. REVIEW AND MONITORING
4.1 Formal Reviews: Formal review meetings will be held on: [Review Dates]. Review meetings will be conducted by [Line Manager] and attended by [HR Manager]. The employee is entitled to bring a workplace representative or colleague (not an external legal representative) to review meetings. The outcomes of each review meeting will be documented and provided to the employee within 3 working days.
4.2 Day-to-Day Monitoring: [Line Manager] will monitor progress against the PIP targets on an ongoing basis and will provide informal feedback to [Employee Name] as performance data becomes available. Any significant emerging concern between formal review dates will be raised with the employee in writing.
4.3 Final Assessment: At the conclusion of the [PIP Duration] PIP period, [Line Manager] and [HR Manager] will conduct a final assessment of performance against each target. The assessment will result in one of three outcomes: (a) PIP completed successfully — no further action; (b) partial improvement — PIP extended at Company discretion for up to a further 30 days; or (c) targets not met — referral to formal disciplinary proceedings under Article 60 of Federal Decree-Law No. 33 of 2021, which may result in dismissal.
5. LEGAL POSITION
5.1 Nature of PIP: This PIP is a performance-management tool issued under the employer's contractual authority to set and monitor work standards. It is distinct from the disciplinary tariff under Article 60 of Federal Decree-Law No. 33 of 2021. The issuance of this PIP does not constitute a disciplinary warning and will not be recorded in the employee's disciplinary file unless and until the PIP process leads to a formal disciplinary outcome.
5.2 Dismissal for Performance: Under Article 47 of Federal Decree-Law No. 33 of 2021, terminating an employment contract due to poor performance without a documented and fair process may constitute arbitrary dismissal, entitling the employee to compensation of up to 3 months' wages. This PIP is part of the documented fair process. A dismissal following failure to meet PIP targets will be supported by: this document; the PIP review-meeting notes; the performance data; and the disciplinary warnings issued under Article 60, if applicable.
5.3 Employee Rights: [Employee Name] retains all statutory rights throughout the PIP period, including the right to the salary stated in the employment contract, the right to leave entitlements, the right to be treated with dignity and respect, and the right to file a complaint with MOHRE at any time under Article 54 of Federal Decree-Law No. 33 of 2021 if the employee believes this process is being conducted unfairly. The Company encourages the employee to raise concerns internally with [HR Manager] at [HR Email] as a first step.
ACKNOWLEDGMENT
By signing below, I acknowledge that I have received and discussed this Performance Improvement Plan. My signature confirms receipt and understanding of the targets, support, and review process. It does not constitute an admission of the performance concerns noted above.
Employee: [Employee Name] | Signature: _______________________ | Date: _______________
Line Manager: [Line Manager] | Signature: ___________________ | Date: _______________
HR Manager: [HR Manager] | Signature: _____________________ | Date: _______________
Employer (HR or Line Manager)
________________
Signature
Employee
________________
Signature
What Is a Performance Improvement Plan (UAE)?
A Performance Improvement Plan (PIP) in the United Arab Emirates is a structured employer document that identifies specific performance shortfalls, sets measurable improvement targets, defines the employer's support obligations, schedules formal reviews, and sets out the consequences of failure to improve. Issued under the employer's contractual authority to manage performance and aligned with the protections afforded to employees by Federal Decree-Law No. 33 of 2021 on Regulation of Labour Relations (the UAE Labour Law), a properly drafted PIP serves simultaneously as a genuine support tool and as a key piece of legal documentation.
The UAE Labour Law does not contain an express statutory provision for performance management or performance-related dismissal, but Article 47 of Federal Decree-Law No. 33 of 2021 is the relevant provision. Article 47 provides that an employer who terminates an employment contract without a valid reason — or on a reason that MOHRE mediators or the Federal Labour Court do not accept as legitimate — is liable to pay compensation of up to three months' wages for arbitrary dismissal, in addition to all other statutory entitlements. This creates a legal imperative for UAE employers to document their performance-management processes: without documentation, a dismissal for poor performance is indistinguishable from an arbitrary dismissal and will be treated as such.
The disciplinary framework under Article 60 of Federal Decree-Law No. 33 of 2021 is relevant to the PIP process in a secondary way. The Article 60 graduated tariff — verbal warning, written warning, wage deduction, suspension, and dismissal — applies primarily to misconduct. Performance failure that is the result of incompetence (an employee trying but falling short) is a capability issue, not a misconduct issue. However, where performance failure becomes persistent and is not addressed by a genuine PIP, it may transition into a misconduct issue (wilful failure to meet reasonable standards), at which point the Article 60 tariff applies. A well-designed PIP tracks the boundary between these two categories.
For MOHRE (the Ministry of Human Resources and Emiratisation), the assessment of whether a performance-related dismissal is valid proceeds through the amicable settlement process under Article 54 of the Labour Law. MOHRE mediators will review the employer's documentation: was there a clear and communicated performance standard? Was the employee told specifically how far short they were falling? Was the employee given a reasonable opportunity to improve with appropriate support? Was the assessment of improvement objective and fair? A signed PIP that answers all four questions positively provides the strongest possible foundation for defending the dismissal.
For employers in the Dubai International Financial Centre (DIFC), the DIFC Employment Law No. 2 of 2019 applies. The DIFC Courts have jurisdiction over DIFC employment disputes, and the Federal Labour Courts do not have jurisdiction. DIFC employment law similarly requires a fair process before dismissal for poor performance. For ADGM employees, the ADGM Employment Regulations 2019 and ADGM Courts apply. Both frameworks align with the general principle that documented, fair, and proportionate process is required before any dismissal is upheld.
The forms-legal.com UAE Performance Improvement Plan template is designed for mainland MOHRE-registered employment relationships. The template covers the key elements identified by MOHRE practice and Federal Labour Court precedent: parties, a specific description of performance concerns, measurable improvement targets, employer support provisions, formal review dates, the legal framework, and a signed acknowledgment block with space for employee, line manager, and HR Manager signatures.
When Do You Need a Performance Improvement Plan (UAE)?
A UAE Performance Improvement Plan is needed in the following specific circumstances.
When an employee consistently fails to meet the performance standards expected of their role — measured by output, quality of work, client feedback, deadlines, or any other objective metric — the employer should initiate a PIP rather than proceeding directly to disciplinary action. The PIP provides the documented foundation for any subsequent disciplinary or dismissal process and demonstrates that the employer took a constructive approach before resorting to formal sanctions.
When an employee receives a negative annual performance review rating — for example, 'below expectations' or 'requires significant improvement' — a PIP is the appropriate follow-up, providing specific targets and a defined timeline for the employee to demonstrate improvement. Without a PIP, the negative performance review is documented evidence of a problem but not evidence of a fair process.
When an employer receives formal complaints from clients or colleagues about an employee's work quality or professional conduct that falls short of gross misconduct but reflects a sustained performance deficit, a PIP is the recommended response. The PIP acknowledges the concern, communicates it to the employee, and gives them an opportunity to address it.
When an employer is considering terminating an employment contract due to poor performance — whether at the end of a fixed term or before — a completed PIP process (including the end-of-PIP assessment) is the most important piece of documentation available to defend an Article 47 arbitrary-dismissal claim in MOHRE mediation or Federal Labour Court proceedings.
When MOHRE receives an employee complaint alleging arbitrary dismissal, one of the first questions the mediator will ask the employer is: 'What steps did you take to give the employee an opportunity to improve?' A signed PIP, with review notes and a final assessment, is a direct and complete answer to that question.
What to Include in Your Performance Improvement Plan (UAE)
A UAE Performance Improvement Plan designed to withstand scrutiny in MOHRE mediation and Federal Labour Court proceedings must include the following elements. The forms-legal.com UAE Performance Improvement Plan template covers each one.
Parties must be identified precisely: the employer's legal name, the employee's full name and ID, the job title and department, and the line manager's name and title. Accurate identification establishes the specific employment relationship to which the PIP applies.
Specific performance concerns must be described in concrete, factual terms. Vague language such as 'poor attitude' or 'not meeting expectations' is insufficient. The concerns must be specific (named, dated incidents or data points), quantified where possible, and consistent with the role description and employment contract. MOHRE mediators assess whether the employee had sufficient information to understand what was wrong and what improvement looked like.
Measurable improvement targets must be objective, achievable within the PIP period, and directly linked to the stated concerns. 'Achieve sales of AED X by date Y' is measurable. 'Improve attitude' is not. MOHRE and the Federal Labour Courts look for objectivity in the targets as evidence that the employer genuinely intended the employee to succeed, not that the process was a pretext for a predetermined dismissal.
Employer support must be specific and credible. 'Coaching from the line manager; access to training resources; bi-weekly HR check-ins' is a concrete list that demonstrates genuine support. Generic phrases like 'all necessary support will be provided' are treated sceptically.
Formal review dates must be built into the PIP structure. At least one mid-point review is essential. Review meetings must be documented and the notes shared with the employee.
Final assessment process must state what happens when the PIP ends: successful completion, extension, or disciplinary proceedings. The mention of Article 60 of Federal Decree-Law No. 33 of 2021 in the consequences section demonstrates that the employer is operating within the statutory framework.
Acknowledgment block must include the employee's signature (or a note of refusal to sign), the line manager's signature, and the HR Manager's signature. Three-party signatures give the document maximum credibility.
How to Fill Out Your Performance Improvement Plan (UAE)
Completing the UAE Performance Improvement Plan template requires the employer to be specific, fair, and realistic at every stage.
Begin with Parties. Enter the exact legal name of the employer as it appears on the MOHRE-registered employment contract, and enter the employee's full name and MOHRE contract number or employee ID. The PIP must identify the specific employment relationship without ambiguity.
In the PIP Details section, select the PIP start date carefully. The PIP should begin as close as possible to the date of the formal meeting at which the performance concerns were discussed with the employee. Starting a PIP months after the concerns arose weakens the employer's position by suggesting the concerns were not serious enough to act on promptly.
Select the PIP duration. 60 days is the most commonly used period in UAE practice. 90 days is appropriate for complex or long-standing performance issues. 30 days is defensible only for straightforward, clearly defined improvement targets.
Draft the performance concerns in clear, specific, factual language. Each concern should be a separate numbered paragraph. Use data where available: 'Q1 2026 sales of AED 120,000 against a target of AED 250,000' is far stronger than 'did not meet sales targets.' Include dates of specific incidents, meeting notes where relevant, and client feedback where applicable.
Draft the improvement targets to be SMART: Specific, Measurable, Achievable, Relevant, and Time-bound. Each target should directly address one or more of the stated performance concerns. Avoid targets that are deliberately impossible to meet: MOHRE mediators are experienced in identifying PIPs designed to fail.
Draft the support section generously. The employer's legal position is strongest when it can demonstrate that genuine, practical support was offered and the employee still failed to meet the targets. List specific named resources: 'weekly 30-minute coaching session with [Manager name] every Monday at 10am' is more credible than 'regular coaching support.'
Set specific review dates. Use actual calendar dates rather than 'after 30 days.' Diarise the reviews as formal meetings with an agenda, noting the employee's right to bring a workplace colleague. Send the meeting notes to the employee within 3 working days of each review.
The PIP should be issued to the employee in the formal meeting at which the performance concerns are discussed, and the employee should be asked to sign the acknowledgment at that meeting. If the employee requests time to consider the document, agree a specific date (maximum 5 working days) by which the signed document must be returned.
Legal Requirements for Performance Improvement Plan (UAE)
Performance Improvement Plan (UAE) — Legal Requirements.
Federal Decree-Law No. 33 of 2021 (UAE Labour Law) is the primary statute. Article 47 is the most directly relevant provision: it creates liability for arbitrary dismissal compensation of up to three months' wages where termination is without a valid reason or follows a process that is not fair. A documented PIP demonstrating specific concerns, measurable targets, employer support, formal reviews, and a final assessment is the employer's primary protection against an Article 47 claim following a performance-related dismissal.
Article 44 lists the grounds for summary dismissal without notice. None of the Article 44 grounds are typically available for pure performance failure (as opposed to deliberate misconduct), so performance-related dismissals require the notice period under Article 43 (30–90 days) plus end-of-service gratuity under Article 51 and accrued leave cash value. The PIP process does not alter these financial obligations.
Article 53 requires all final entitlements to be settled within 14 days of the last working day, regardless of whether the dismissal followed a PIP process.
Article 54 provides the employee's right to file a MOHRE complaint at any stage of the employment relationship, including during a PIP. The employer's documentation — including the PIP document and the review notes — will be required by MOHRE if a complaint is filed.
Article 60 governs the formal disciplinary tariff for misconduct. Where poor performance transitions into wilful refusal to perform or deliberate non-compliance with reasonable instructions, the employer may issue formal disciplinary warnings under Article 60 alongside or following the PIP process.
For DIFC employees: DIFC Employment Law No. 2 of 2019 and DIFC Courts apply. For ADGM employees: ADGM Employment Regulations 2019 and ADGM Courts apply. Both jurisdictions similarly require documented fair process for performance-related dismissals.
Common Mistakes to Avoid in Your Performance Improvement Plan (UAE)
UAE Performance Improvement Plan — Common Mistakes That Undermine the Employer's Legal Position.
1. Using vague or subjective performance concerns. 'Poor attitude,' 'not a team player,' or 'doesn't fit the culture' are not defensible performance concerns. MOHRE mediators and Federal Labour Court judges require concrete, specific evidence of how the employee fell short. State dates, data, and specific incidents.
2. Setting unachievable targets. A PIP designed to fail — with targets the employer knows the employee cannot meet in the time given — is treated by MOHRE as evidence of a predetermined dismissal outcome. This inverts the arbitrary-dismissal liability back onto the employer. Targets must be challenging but genuinely achievable.
3. No formal mid-point review. A PIP that runs for 60 or 90 days with no formal review until the end fails to give the employee the feedback and course-correction they need to succeed. MOHRE mediators look for evidence that the employer engaged with the employee throughout the process, not just at the beginning and the end.
4. Not providing the promised support. If the PIP states that the employer will provide weekly coaching, and that coaching does not occur, the employee has grounds to challenge the dismissal as unfair regardless of whether the performance targets were met. Document every coaching session and training provided.
5. Conflating PIP and disciplinary warning. Issuing a PIP that is framed as a formal warning under Article 60 creates procedural confusion. The PIP and any formal warning should be separate documents with separate acknowledgment pages.
6. Not settling final entitlements within 14 days. Even after a justified dismissal following a failed PIP, the employer must pay end-of-service gratuity, accrued leave, and any remaining wages within 14 days of the last working day under Article 53 of Federal Decree-Law No. 33 of 2021. Late payment triggers a MOHRE complaint right and potential additional compensation orders.
Cite this page
Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Performance Improvement Plan (UAE) (United Arab Emirates) [Legal document template]. Forms Legal. https://forms-legal.com/uae/employment/hr-forms/performance-improvement-plan-uae
"Performance Improvement Plan (UAE) (United Arab Emirates)." Forms Legal, 2026, https://forms-legal.com/uae/employment/hr-forms/performance-improvement-plan-uae.
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author = {{Forms Legal}},
title = {Performance Improvement Plan (UAE) (United Arab Emirates)},
year = {2026},
howpublished = {\url{https://forms-legal.com/uae/employment/hr-forms/performance-improvement-plan-uae}},
note = {Free legal document template. Based on Federal Decree-Law No. 33 of 2021 (UAE Labour Law) — Articles 44, 47, 54, 60}
}Frequently Asked Questions
A Performance Improvement Plan (PIP) is not expressly required by Federal Decree-Law No. 33 of 2021, but it has become the most reliable way for UAE employers to demonstrate a fair dismissal process when the ground is poor performance rather than disciplinary misconduct. Article 47 of the Labour Law provides that an employee who is dismissed without a valid reason is entitled to compensation of up to three months' wages for arbitrary dismissal, in addition to all statutory entitlements (end-of-service gratuity, accrued leave, and notice pay). MOHRE mediators and the Federal Labour Courts will assess whether the employer took reasonable steps to identify the performance problem, communicate it to the employee, give the employee an opportunity to improve, and provide appropriate support before dismissal.
A documented PIP — specifying the precise performance concerns, measurable improvement targets, a defined period, employer support, and formal review dates — is the most effective way to demonstrate that those steps were taken. Without a PIP or equivalent documentation, a dismissal for poor performance is likely to be treated as arbitrary under Article 47, because the employee can credibly argue they were never clearly told what the standard was, how far short they were falling, or what would happen if performance did not improve.
The PIP also serves a second function: it is a genuine opportunity for the employee to succeed. MOHRE mediators and Federal Labour Courts expect to see that the employer used the process in good faith, not as a formality before a predetermined dismissal. A PIP that is too short, has impossible targets, or provides no real support is likely to be treated sceptically. A 60–90 day PIP with objective targets, documented support, and regular review meetings is the standard in UAE employment practice.
Federal Decree-Law No. 33 of 2021 draws a clear distinction between poor performance (capability) and misconduct (behaviour). Misconduct is addressed through the disciplinary tariff in Article 60, which includes verbal warnings, written warnings, wage deductions, suspension, and dismissal for breach of workplace rules or policies. The grounds for summary dismissal without notice in Article 44 are all misconduct-based: assault, disclosure of trade secrets, intoxication, attendance abandonment, and similar deliberate wrongdoing.
Poor performance — where the employee is genuinely trying but not meeting the standard required — is a capability issue, not a misconduct issue. The UAE Labour Law does not contain a specific 'capability dismissal' provision equivalent to the English employment law framework. Instead, Article 47 provides a general arbitrary-dismissal protection that applies to any termination without a valid reason. MOHRE practice and Federal Labour Court case law treat dismissal for poor performance as potentially valid, provided the employer can demonstrate: a clear and communicated performance standard; a documented performance shortfall; a fair opportunity and support to improve; and a proportionate and documented process before dismissal.
The practical distinction matters for process. A misconduct investigation under Article 60 requires the employer to notify the employee of the specific allegation and give them a right of response before any sanction is imposed. A performance-management process under a PIP requires the employer to set targets, provide support, review progress, and escalate only if improvement is insufficient. The two processes can overlap: repeated performance failures after warnings may eventually be treated as misconduct (wilful failure to perform), at which point the Article 60 tariff applies. Employers should be explicit in their documentation about which process they are following to avoid procedural confusion that could undermine a dismissal.
Proceeding with a redundancy while an employee is on a PIP is legally possible but risks looking like a dismissal motivated by the performance concern rather than a genuine redundancy. Federal Decree-Law No. 33 of 2021 does not have a specific redundancy or collective dismissal framework analogous to UK or EU systems. Instead, the Labour Law treats any termination of a fixed-term contract before its expiry date as giving rise to a claim for the remaining wages under Article 43, unless the termination is for one of the specified Article 44 gross-misconduct grounds.
For a genuine business-driven restructuring that eliminates the employee's role, the employer can terminate before the end of the fixed-term contract by paying the remaining wages for the unexpired term (in lieu of notice) plus end-of-service gratuity and accrued leave. If the employer is simultaneously running a PIP for the same employee, MOHRE mediators will scrutinise whether the redundancy is genuine or a pretext for avoiding the arbitrary-dismissal test under Article 47.
The safest approach is to resolve the PIP process before initiating a redundancy process, or to suspend the PIP formally if a genuine restructuring decision is made, and to ensure that the restructuring decision is documented as a separate business decision with objective supporting evidence (financial data, board minutes, reorganisation charts) that has no connection to the employee's individual performance. An employer who conflates redundancy and performance management risks a finding that the 'redundancy' was in fact a pretext for an arbitrary dismissal, which carries a compensation liability of up to three months' wages under Article 47.
An employee's refusal to sign a PIP does not invalidate the process or prevent the employer from proceeding. Under UAE employment practice, the employer should document the refusal — typically by noting on the PIP document itself that 'the employee declined to sign on [date]' and having a witness (the HR Manager or a second manager) countersign to confirm. The PIP is then filed in the employee's HR record as-is, and the performance-management process continues on the stated timeline.
An employee who refuses to sign but continues to attend work and receive their salary is in a difficult position to argue in subsequent MOHRE mediation that they were unaware of the PIP terms. The employer should ensure that the PIP was discussed in a formal meeting, that the meeting was recorded in writing (meeting notes sent to the employee by email), and that the employee was specifically asked to sign and declined. This creates a contemporaneous record that the employee was on notice of the performance concerns and the consequences of failure.
If the employee also refuses to attend the PIP meeting, the employer should document the non-attendance and send the PIP to the employee by email (to their Company email address) and, where necessary, by registered mail to their registered residential address. For the PIP process to be defensible in MOHRE mediation and Federal Labour Court proceedings, the employer needs evidence of two things: that the performance concerns were communicated, and that the employee was given a genuine opportunity to improve. Both can be established by documentation even without a signature.
The optimal PIP duration in the UAE context is 60 to 90 days. This length is long enough to demonstrate that the employer gave the employee a genuine opportunity to improve, but short enough to be operationally practical and to resolve the performance issue within a reasonable timeframe. A 30-day PIP is sometimes used for minor, clearly defined performance issues where the required improvement is straightforward, but in MOHRE mediation it may be viewed as too short to constitute a genuine improvement opportunity, particularly if the performance concern developed over several months.
The PIP duration should be calibrated to the complexity of the performance concern. A sales target shortfall that has accumulated over two quarters warrants a longer PIP period than a single defined skill gap. The targets set for the PIP period should be proportionate to the duration: a 30-day PIP with a target to achieve six months' worth of improvement is likely to be found unreasonable by a MOHRE mediator.
From a practical standpoint, the PIP should include at least one formal mid-point review to give the employee feedback on progress and adjust the support provided if necessary. A PIP with no review until the final day gives the employee grounds to argue they were not kept informed of how they were performing, which weakens the employer's position if the PIP is subsequently challenged. The forms-legal.com UAE Performance Improvement Plan template includes provision for formal review dates and a final assessment process that generates the documentation needed for any subsequent disciplinary or MOHRE proceedings.
Even when an employee fails to meet PIP targets and is subsequently dismissed, they retain all statutory entitlements under Federal Decree-Law No. 33 of 2021. Article 51 provides end-of-service gratuity (21 days of basic wage per year for the first five years, 30 days per year thereafter) for any employee who has completed at least one year of continuous service. Article 29 provides for the cash value of any accrued but untaken annual leave. Article 43 requires the employer to give or pay in lieu the contracted notice period (30–90 days) unless the dismissal is for one of the Article 44 gross-misconduct grounds — which a failed PIP is not.
All these amounts must be settled within 14 days of the last working day under Article 53. Delays beyond 14 days entitle the employee to file a MOHRE complaint and, if unresolved, to pursue a Labour Court claim. The court may award additional compensation for late settlement in appropriate cases.
If the employee believes the dismissal following the PIP was arbitrary under Article 47 — for example, because the PIP process was conducted in bad faith, the targets were impossible to meet, or the support promised was not provided — they may file a MOHRE complaint and claim additional compensation of up to three months' wages. A well-documented PIP that demonstrates objective targets, genuine support, formal reviews, and a proportionate final assessment is the employer's primary defence against this claim. The signed PIP document, the review-meeting notes, and the performance data are all relevant evidence in MOHRE mediation and Federal Labour Court proceedings.
Yes. A PIP and a formal written warning under Article 60 of Federal Decree-Law No. 33 of 2021 are not mutually exclusive. An employer may issue a written warning as a formal disciplinary step alongside the PIP, particularly where the performance failure is sufficiently serious to warrant both a support-focused process (the PIP) and a formal notice of consequences (the warning). The written warning must be issued separately from the PIP document, using the Company's standard disciplinary process: notification to the employee of the specific conduct or performance concern, an opportunity to respond, and then the formal written warning with a clear statement of the consequences of further failure.
The distinction between the two documents is important for MOHRE mediation. The PIP is framed as a support and improvement tool; the written warning is a formal disciplinary step in the Article 60 tariff. If the PIP is ultimately unsuccessful and the employer proceeds to dismissal, the combination of a signed PIP (demonstrating that the employee had a fair opportunity to improve with support) and a formal written warning (demonstrating that the employee was on notice of the disciplinary consequences) creates the strongest possible documentation framework for defending against an arbitrary dismissal claim under Article 47.
Employers should be careful not to conflate the two documents or to present the PIP as a warning in itself. If the employer later claims that the PIP was a formal disciplinary step, but the PIP document does not use the language of the Article 60 tariff, MOHRE mediators may discount it as evidence of a fair disciplinary process. Keep the PIP and the formal disciplinary warning as separate documents with separate acknowledgments.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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