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A Performance Improvement Plan (PIP) is a formal tool used by Australian employers to help employees lift their work performance to meet expected standards. It sets clear, measurable goals and provides structured support to address specific workplace concerns, from missed targets to behavioral issues.

Under Fair Work regulations, PIPs play a vital role in managing underperformance fairly and legally. The plan typically runs for 30-90 days, outlining required improvements, support measures, and regular check-ins. When properly implemented, it creates a documented pathway for employee success while protecting both parties in case termination becomes necessary.

Use a Performance Improvement Plan when an employee's work consistently falls below expected standards, but you believe they have the potential to improve. Common triggers include missed KPIs, quality issues, poor attendance patterns, or behavioral concerns that impact team performance.

Under Australian workplace law, implementing a PIP before considering termination demonstrates fair process and good faith. It's especially valuable when dealing with long-term employees or complex performance issues. The key is to start early - waiting too long can damage team morale, create legal risks, and make recovery harder for everyone involved.

• Basic Performance Plans: Focus on specific KPIs and measurable targets, typically used for sales roles or quantifiable performance issues
• Behavioral PIPs: Address conduct, communication, or teamwork concerns with clear examples and expected improvements
• Skills Development Plans: Outline training needs, upskilling requirements, and professional development goals
• Leadership Performance Plans: Target management capabilities and leadership behaviors for supervisory roles
• Return-to-Work PIPs: Support employees returning after extended leave or following workplace incidents

• HR Managers: Draft and oversee Performance Improvement Plans, ensuring compliance with Fair Work requirements and company policies
• Direct Supervisors: Help identify performance issues, set measurable goals, and conduct regular check-ins during the PIP period
• Employees: Must understand, agree to, and work toward meeting the outlined performance targets and improvement measures
• Union Representatives: May review PIPs and attend meetings when requested by union members
• Legal Teams: Review PIP documentation to ensure it meets workplace law requirements and protects against unfair dismissal claims

• Document Performance Issues: Collect specific examples of underperformance, including dates, incidents, and impact on business
• Set Clear Metrics: Define measurable goals that align with role expectations and company standards
• Timeline Planning: Map out reasonable deadlines and review points across 30-90 days
• Support Resources: List available training, mentoring, or tools to help achieve improvement goals
• Meeting Schedule: Plan regular check-ins to monitor progress and provide feedback
• Legal Compliance: Use our platform to generate a legally sound PIP that meets Fair Work requirements

• Employee Details: Full name, position, department, and reporting relationships
• Performance Concerns: Specific examples of issues, with dates and impact on work outcomes
• Improvement Goals: Clear, measurable objectives that align with role requirements
• Support Measures: Available resources, training, and assistance to achieve targets
• Timeline Structure: Start date, review points, and completion date (typically 30-90 days)
• Acknowledgment Section: Signatures from employee, manager, and HR representative
• Fair Work Statement: Confirmation that the PIP follows Australian workplace laws

A Performance Improvement Plan differs significantly from a Performance Review Document. While both relate to employee performance, they serve distinct purposes in Australian workplaces.

• Timing and Purpose: PIPs are remedial tools used when performance issues arise, while Performance Reviews are regular assessments of all employees' work, typically conducted annually or quarterly
• Legal Implications: PIPs form part of formal performance management processes and can support termination decisions, whereas Performance Reviews primarily document achievements and set future goals
• Structure: PIPs include specific improvement targets, support measures, and consequences if goals aren't met. Performance Reviews focus on broader career development and salary discussions
• Duration: PIPs have fixed timeframes (usually 30-90 days) with regular check-ins, while Performance Reviews are point-in-time assessments with long-term development goals