Performance Improvement Plan Template

What a PIP actually is

A performance improvement plan is a written agreement between a manager and an employee: here is where performance falls short, here is what "good" looks like, here is the support you'll get, and here is when we'll review. Done well, it's a genuine attempt to help someone succeed. Done badly — vague, rushed, or transparently a paper trail — it fails both purposes: the employee doesn't improve, and the process won't stand up if a dismissal is later challenged as unfair.

Procedural fairness is the thread running through everything below. The Fair Work Commission looks hard at whether the employee knew the standard, had a real chance to meet it, and was supported along the way.

Before you start the PIP

• Check the groundwork. Has the employee been told informally about the issues? A PIP shouldn't be the first they hear of it.
• Separate performance from conduct. A PIP addresses capability — not doing the job well enough. Misconduct is a different process with different rules.
• Rule out other causes. Unclear role, missing tools, health issues, or an overloaded team can all masquerade as underperformance.
• Confirm the standard exists. If there's no position description or agreed targets, fix that first — you can't measure someone against expectations they were never given.

What the template contains, section by section

1. The performance gap

Specific, factual statements of where performance falls short, each tied to a requirement of the role. "Attitude problems" is not a gap; "three of the last five client reports were delivered after the agreed deadline" is.

2. The required standard

For each gap, the observable outcome that closes it. Make it measurable enough that at review time, both people can agree whether it was met.

3. Support to be provided

Training, coaching, adjusted workload, clearer briefs, more frequent check-ins — whatever the business will actually do. This section is what makes the plan genuine rather than performative, and it's what a tribunal will scrutinise.

4. Review timeline

A defined period with scheduled check-ins along the way. Long enough to demonstrate real change for the role in question, short enough to maintain momentum. Note each check-in in writing afterwards.

5. Possible outcomes

State plainly what happens if the standard is met (plan closed, noted on file) and if it isn't (extension, redeployment, or termination of employment may be considered). Don't pre-commit to dismissal — that undermines the fairness of the process.

6. Signatures and acknowledgement

Both parties sign. If the employee disagrees with the content, record that they received and discussed it — agreement isn't required, but awareness is.

Running the process well

• Offer a support person for formal meetings, and record that the offer was made.
• Keep check-ins honest. If things are improving, say so. If not, say that too — surprises at the final review are a sign the process failed.
• Document as you go, not retrospectively. Contemporaneous notes carry far more weight.
• Watch for general protections risks. A PIP that begins right after a complaint, injury or leave request will attract scrutiny.

When it ends

If the standard is met, close the plan formally and in writing — leaving it ambiguously open sours the win. If it isn't met, take advice before acting: dismissal rules, notice, and small business exemptions all depend on the current Fair Work framework and your circumstances. This template is general guidance, not a substitute for advice on a specific case. Weak performance management is often a symptom of missing management infrastructure more broadly — see our people services and the back-office capability gap.