Receiving a Performance Improvement Plan, or PIP, is often a shock. It can feel like the first step towards the exit door, causing significant stress and uncertainty. While it's true that a PIP can precede dismissal, it is not—and should not be—simply a formality to get rid of an employee.
Under Dutch law, an employer has a duty of care and cannot terminate your contract for underperformance without making a genuine effort to help you improve. A PIP is a formal tool within this improvement process (verbetertraject). It is meant to be a constructive instrument, but only if it is fair, reasonable, and correctly implemented.
As an employee, you have rights. Knowing them is crucial to navigate this process effectively.
5 Requirements for a Fair PIP
For a PIP to be legally valid, it must meet several strict criteria. If your employer’s plan falls short, it may not hold up in court should they later attempt to dismiss you.
1. The Criticism Must Be Clear and Specific
Your employer must clearly state what the issue is. Vague feedback like "you are not performing at the required level" or "your communication is poor" is insufficient. The criticism must be supported by concrete, specific examples of where and when you allegedly underperformed.
2. The Goals Must Be Measurable and Achievable (SMART)
The objectives set out in the PIP must be realistic. The goals should be Specific, Measurable, Achievable, Relevant, and Time-bound (SMART). An objective like "improve your performance" is too vague. A valid goal would be: "reduce the error rate in your monthly reports from 15% to under 5% within the next three months." You must have a clear understanding of what success looks like.
3. The Timeframe Must Be Reasonable
You must be given a realistic period to demonstrate improvement. What is "reasonable" depends on the complexity of the role and the nature of the issues, but a period of a few weeks is almost never sufficient. A timeframe of three to six months is more common and considered more reasonable by courts.
4. The Employer Must Provide Active Support
A PIP is not a one-way street. Your employer cannot simply hand you the plan and wait for you to fail. They have an active duty to provide you with the necessary support, guidance, and resources to help you meet your goals. This could include:
- Additional training or courses.
- Regular coaching or mentoring.
- Adjusting your workload or responsibilities temporarily.
- Providing the necessary tools or information.
5. There Must Be Regular Evaluation
The process should include regular, scheduled meetings to discuss your progress, address any obstacles, and evaluate whether the support being offered is effective. It should not be a surprise at the end of the PIP that the goals were not met. Both parties should be aware of the progress throughout the entire period.
What to Do When You Receive a PIP
If you are presented with a PIP, your immediate actions are important.
- Stay Calm and Professional. Acknowledge receipt of the document, but do not feel pressured to agree with its contents on the spot. Ask for time to review it carefully.
- Do Not Sign Immediately. Be very careful about what you sign. Signing a PIP can be interpreted as you agreeing with the criticisms and the proposed goals. If you do sign, consider adding "for receipt only" (voor ontvangst) or "without prejudice" (onder voorbehoud van alle rechten) next to your signature.
- Respond in Writing. It is crucial to create a paper trail. Write a professional response to your employer in which you address the points in the PIP. Correct any factual inaccuracies, state which goals you believe are unrealistic, and request the specific support you need to improve.
- Keep a Log. Document everything. Keep a record of the feedback you receive, the support that is (or is not) provided, your progress, and any relevant conversations.
- Seek Legal Advice. A PIP often has significant legal implications for your future employment. As an employment lawyer, I can help you assess whether the PIP is fair and legally sound, draft a strong response, and ensure your rights are protected throughout the process. This is especially critical for expats who may be unfamiliar with the nuances of Dutch employment law.
A PIP should be a final, genuine chance to improve, not a one-way ticket out of the company. Knowing your rights is the first step in ensuring the process is fair and just.
Are you an expat in the Netherlands and has your employer offered you a PIP? Contact us today to discuss how we can protect your rights.
Disclaimer: This blog is for informational purposes only and does not constitute legal advice. You should always consult with a qualified legal professional for advice tailored to your specific situation.
