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Performance Improvement Plan Template

A Performance Improvement Plan (PIP) is a formal written plan from an employer to an employee identifying specific performance concerns, SMART improvement goals, the support and resources the employer will provide, the review schedule, and the consequences if the goals are not met. Our free Canadian template is province-aware and complies with the McKinley just-cause framework, the common-law progressive-discipline doctrine, and the procedural and substantive duty to accommodate under the applicable provincial Human Rights Code.

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Northwind Logistics Inc.
180 Lake Shore Boulevard East, Toronto, ON M5A 3X7
+1 (416) 555-0140
hr@northwind-logistics.ca
2026-06-15
Aleksander Mihai Constantinescu
218 Roxborough Drive, Toronto, ON M4W 1X3
RE
PERFORMANCE IMPROVEMENT PLAN — SENIOR OPERATIONS ANALYST
Dear Aleksander Mihai Constantinescu,

This letter sets out the formal Performance Improvement Plan (the "PIP") that the Employer is implementing with you, effective from 2026-06-15, in respect of your role as Senior Operations Analyst in the Operations department (you have been employed by the Employer since 2022-08-15). The PIP is a structured, supportive framework designed to give you a clear, time-bound opportunity to address the performance concerns set out below, with the active support of your manager and the Employer's training and development resources. The PIP is not, and does not constitute, a notice of termination, and does not unilaterally change the fundamental terms of your employment in the Province of Ontario.
1.
PERFORMANCE CONCERNS
The Employer has identified the following specific performance concerns that require improvement during the PIP period:

Missed deadline on Q2 operations reporting (delivered 3 weeks late on 10 June 2026 against an agreed 20 May 2026 deadline).
Q1 board deck contained a material financial-data error (revenue figure under-stated by CAD 1.2 million — corrected after submission to the board on 14 April 2026).
Five (5) unexplained late arrivals (more than 30 minutes late, no prior notice) during the month of May 2026 — recorded on 6 May, 11 May, 17 May, 24 May and 29 May.
2.
SMART IMPROVEMENT GOALS
You are required to meet each of the following Specific, Measurable, Achievable, Relevant, Time-bound (SMART) improvement goals by the end of the PIP period:

Submit all quarterly reports by the 15th of the month following quarter-end. Next report (Q3 2026) due 15 August 2026.
Zero material financial-data errors in board-level materials. All Q3 outputs to be cross-checked with the CFO before submission.
A maximum of one (1) unexplained late arrival per month, with prior written notice for any other late arrival.
Completion of the Excel Advanced Financial Modelling course (Coursera Specialisation, 4-week programme) before the end-point review on 14 August 2026.
3.
SUPPORT AND RESOURCES PROVIDED BY THE EMPLOYER
The Employer will provide the following support and resources during the PIP period to give you a fair opportunity to meet the SMART goals above:

Weekly 1-on-1 with Diana Khaledi every Monday at 10:00 AM (30 minutes) for the duration of the PIP.
Access to the Excel Advanced Financial Modelling Coursera Specialisation, paid for by the Employer.
Paid time during working hours for course study (up to 2 hours per week).
Mentor assignment (Reza Farhadi, VP Finance) for the PIP period — fortnightly 1-hour check-ins on financial-modelling and board-deck quality.
Reassignment of secondary projects (Q3 vendor-onboarding workstream) to a peer analyst for the duration of the PIP, to focus capacity on the core reporting and modelling work.
4.
REVIEW SCHEDULE
The PIP will run for a period of approximately 60 day(s) from 2026-06-15, ending on 2026-08-14. During the PIP period, your manager (Diana Khaledi, Chief Operating Officer) will hold formal progress reviews with you on the following dates:

Mid-point review: 2026-07-15.
End-point review: 2026-08-14.

At each review you will be given the opportunity to discuss your progress against the SMART goals, to raise any obstacles or concerns, and to identify additional support that you may need. The Employer will document each review in writing and provide you with a copy.
5.
CONSEQUENCES IF GOALS NOT MET
If, at the end of the PIP period, the Employer concludes that you have not met one or more of the SMART improvement goals above, the consequence will be a final written warning, with the strong likelihood of further disciplinary action including termination of employment if performance does not meet the agreed goals.

Additional consequences and procedural notes:
A formal review meeting with the Chief People Officer and the Chief Operating Officer will be convened within 7 days of the end-point review.
The Employer will consider the full context — the specific goal(s) not met, the support actually provided, any accommodation considerations, and any extenuating circumstances — before reaching any decision.
Where termination of employment is being considered, the Employer will comply with all procedural and substantive duties owed under the applicable provincial Human Rights Code and the common law of reasonable notice.

The Employer will exercise its discretion in good faith, in accordance with the principles set out in McKinley v BC Tel, 2001 SCC 38 (just cause requires a contextual assessment of whether the employment relationship can viably subsist) and Honda Canada Inc v Keays, 2008 SCC 39 (the duty of good faith in the manner of dismissal).
6.
DOCUMENTED PAST INCIDENTS SCHEDULE
The performance concerns set out in Article 1 above did not emerge in isolation. The Employee has been given verbal coaching and written feedback on each of the underlying issues over the preceding 8 weeks, as recorded below.

The PIP is being implemented against the following documented background of prior performance concerns and progressive coaching:

(1) 14 April 2026. Material financial-data error in Q1 board deck (revenue figure under-stated by CAD 1.2 million).
Manager: Diana Khaledi (Chief Operating Officer).
Prior coaching / written feedback: Verbal coaching at the post-board debrief on 17 April 2026; written memo to file 18 April 2026..

(2) 6, 11, 17, 24, 29 May 2026. Five unexplained late arrivals during May 2026 (more than 30 minutes late, no prior notice).
Manager: Diana Khaledi (Chief Operating Officer).
Prior coaching / written feedback: Verbal coaching at the 1-on-1 on 13 May 2026 and 27 May 2026; written warning email 30 May 2026..

(3) 10 June 2026. Missed deadline on Q2 operations reporting (delivered 3 weeks late on 10 June 2026 against an agreed 20 May 2026 deadline).
Manager: Diana Khaledi (Chief Operating Officer).
Prior coaching / written feedback: Verbal coaching at the post-delivery debrief on 11 June 2026; PIP recommendation made to Human Resources on 12 June 2026..

This schedule is provided so that the PIP framework is anchored in a documented record of prior notice and prior support. It is not, and is not intended to be, an admission of the Employer's view as to any future just-cause determination.
7.
TRAINING AND DEVELOPMENT RESOURCES
The Employer commits to a training and development budget of 3,500.00 CAD over the PIP period, to be applied to

Excel Advanced Financial Modelling — Coursera Specialisation by The Wharton School (4 courses, 4 weeks, ~CAD 80).
Project Management Professional (PMP) — exam preparation course and exam fee (~CAD 2,500), conditional on PIP successful completion.
Board-level financial reporting workshop (CPA Ontario half-day workshop, ~CAD 600).
Reimbursement of two relevant professional books at up to CAD 100 each.

Mentor / coach assignment: Reza Farhadi, Vice President, Finance, will be assigned as your mentor for the PIP period and will be available for fortnightly check-ins outside the formal review schedule.
8.
CONSTRUCTIVE DISMISSAL PROTECTION
The Employer expressly records that the PIP is not a notice of termination and does not unilaterally change any of the fundamental terms of your employment — including your job title, base salary, benefits, reporting relationships or hours of work. The PIP is a procedural framework for performance improvement and nothing more.

Specific confirmations:
Your job title remains Senior Operations Analyst.
Your base salary remains CAD 95,000 per annum, unchanged.
Your benefits, vacation entitlement and reporting line to Diana Khaledi remain unchanged.
The reassignment of the Q3 vendor-onboarding workstream to a peer analyst is temporary (PIP period only) and does not constitute a removal of core duties or a demotion.

You retain all your rights under your employment agreement, the applicable provincial Employment Standards Act, and the common law of reasonable notice. If at any point during the PIP you consider that the Employer has unilaterally changed a fundamental term of your employment, please raise the concern immediately with Human Resources so that the issue can be addressed.

Reservation of statutory and common-law rights. For greater certainty, your participation in the PIP and your signature on the Employee Acknowledgment below does not, and is not intended to, waive or release any of your rights under the applicable provincial Employment Standards Act (including without limitation entitlements to notice, pay in lieu of notice, vacation pay, public holiday pay, overtime and the statutory complaint mechanism), the applicable provincial Human Rights Code (including the right to be free from discrimination and the right to be accommodated to the point of undue hardship), the federal Canada Labour Code (where applicable), and the common law of reasonable notice as articulated in Bardal v Globe and Mail Ltd. (1960) and subsequent jurisprudence. This reservation operates regardless of the outcome of the PIP.
9.
HUMAN RIGHTS ACCOMMODATION INQUIRY
The Employer takes its procedural and substantive duty to accommodate employees with protected-ground characteristics under the Human Rights Code, R.S.O. 1990, c. H.19 (sections 5 and 11) seriously. Before imposing performance management on you, the Employer wishes to inquire — in confidence — whether any of the performance concerns set out in Article 1 above relate to (or are influenced by): a disability (physical or mental, including mental health and addiction); a family-status caregiving obligation; a pregnancy or related condition; a religious observance; an ancestry, ethnic origin or creed-related circumstance; or any other ground protected by the applicable provincial human rights code.

If any such ground applies, the Employer has a positive duty to accommodate you to the point of undue hardship, and the SMART goals and support framework in this PIP can and will be adjusted accordingly. You are under no obligation to disclose any specific medical diagnosis — only to identify that an accommodation may be needed.

Please direct any disclosure of a protected ground or any accommodation request to Hannah Reilly, Director of Human Resources at hreilly@northwind-logistics.ca. Please respond within 14 day(s) of the PIP start date. If you do not require accommodation, no response is necessary and the PIP will continue as set out above.
10.
EMPLOYEE ACKNOWLEDGMENT
By signing below, you acknowledge that: (a) you have received and read this Performance Improvement Plan in its entirety; (b) you have had a reasonable opportunity to ask questions about the SMART goals, support resources, review schedule and consequences set out above; (c) you understand that the PIP is a procedural framework for performance improvement and is not, in itself, a notice of termination; and (d) you commit to using your reasonable best efforts to meet the SMART goals during the PIP period. Your signature is not an admission that the performance concerns set out in Article 1 are well-founded, but only that you have received and understood the PIP.
SINCERELY,
Diana Khaledi
Chief Operating Officer, for and on behalf of Northwind Logistics Inc.
Date: ____________________
EMPLOYER
Diana Khaledi
Chief Operating Officer
Northwind Logistics Inc.
Date: ____________________
EMPLOYEE — ACKNOWLEDGMENT
Aleksander Mihai Constantinescu
Date: ____________________

Available as a print-ready PDF or an editable Microsoft Word (.docx) file.

What Is a Performance Improvement Plan?

A Performance Improvement Plan (PIP) is the canonical procedural vehicle for addressing employee performance concerns in Canada. It is a formal, written, time-bound plan that identifies specific performance concerns, sets SMART improvement goals (Specific, Measurable, Achievable, Relevant, Time-bound), records the support and resources the employer will provide, schedules formal reviews, and sets out the consequences if the goals are not met by the end of the plan period.

In Canada, the PIP is the procedural backbone of any later for-cause termination based on poor performance. Canadian courts have repeatedly held that, before a for-cause termination, the employee must have been given (i) clear notice of the performance concerns, (ii) a reasonable opportunity to improve, (iii) genuine support and resources, and (iv) progressive consequences if improvement does not occur. The PIP delivers all four elements in a single documented framework.

The key Canadian cases are McKinley v BC Tel, 2001 SCC 38 (just cause requires a contextual assessment of whether the employment relationship can viably subsist); Honda Canada Inc v Keays, 2008 SCC 39 (moral damages for breach of the duty of good faith in the manner of dismissal); and Galea v Wal-Mart Canada Corp, 2017 ONSC 245 ($750,000 in moral and punitive damages where employer engaged in a callous, highhanded course of conduct that left the employee to "twist in the wind"). The PIP is the most effective way to demonstrate good-faith employer conduct and to defeat any subsequent Galea-style argument.

What's Covered in This Template

Our Performance Improvement Plan template covers every element that a Canadian employment lawyer would expect.

Employer & Manager Details

Employer letterhead, governing province, and the manager who will deliver and sign the PIP.

Employee Identification

Employee name, address, current position and department, hire date.

Plan Dates & Review Schedule

PIP start date, duration (typically 30 to 90 days; 60-day Canadian norm), mid-point and end-point review dates.

Performance Concerns

Specific, dated, measurable observations — not abstract characterisations.

SMART Improvement Goals

Specific, Measurable, Achievable, Relevant, Time-bound goals for the PIP period.

Support & Resources

Weekly 1-on-1s, training programs, mentor assignment, removal of competing priorities, etc.

Consequences If Not Met

Written warning / final written warning / termination for cause / termination without cause — selected by severity.

Documented Past Incidents Schedule (Expert)

Dated record of prior incidents + prior coaching — anchors the PIP in a documented progressive-discipline history.

Training & Development Plan (Expert)

Defined training budget, specific programs, named mentor — counters Galea-style "no genuine support" arguments.

Constructive Dismissal Protection (Expert)

Express acknowledgment that the PIP is not a termination and does not unilaterally change fundamental terms, plus optional ESA + HRC + common-law rights reservation.

Human Rights Accommodation Inquiry (Expert)

Embeds the procedural duty to inquire whether performance concerns relate to a protected ground — eliminates the single biggest source of human-rights complaints arising from PIPs.

How to Create Your Performance Improvement Plan

Follow these steps to draft a PIP that maximises the chance of genuine performance improvement and (if termination later becomes necessary) supports the McKinley just-cause analysis.

  1. 1

    Document the Specific Performance Concerns

    Each concern should be specific, dated and measurable. "Missed deadline on Q2 reporting (delivered 3 weeks late on 10 June 2026 against an agreed 20 May 2026 deadline)" is enforceable; "does not show initiative" is not.

  2. 2

    Write Each Goal in SMART Format

    Specific (clear deliverable), Measurable (objective metric), Achievable (within the employee's capacity given the support), Relevant (linked to the role), Time-bound (deadline within the PIP period).

  3. 3

    List the Specific Support and Resources

    Weekly 1-on-1s with the manager, named training programs paid for by the employer, named mentor, removal of competing priorities, paid time during working hours for training. Vague support invites Galea-style criticism.

  4. 4

    Set Realistic Review Dates

    Mid-point review (~30 days in) and end-point review (~60 days in). Document each review in writing and provide a copy to the employee.

  5. 5

    Add the Documented Past-Incidents Schedule (Expert)

    Convert your contemporaneous incident log into a dated schedule of prior performance concerns and prior coaching. This anchors the PIP in a documented progressive-discipline history.

  6. 6

    Commit a Specific Training Budget (Expert)

    Typical Canadian range CAD 1,000 to CAD 5,000. Naming specific programs and a specific mentor signals genuine investment in the employee's success.

  7. 7

    Embed the Constructive-Dismissal and HRC Protection Clauses (Expert)

    Express acknowledgment that the PIP is not a termination and does not change fundamental terms; embedded duty to inquire whether performance concerns relate to a protected ground. Pre-empts the two most common PIP litigation triggers.

  8. 8

    Deliver the PIP in a Private Meeting + Follow Up in Writing

    Walk through the PIP with the employee in a private meeting. Give them time to read it, ask questions, and consider their position. Follow up in writing within 24 hours so the timeline is documented.

Why Doxuno documents are different

Four things that make our templates more thorough than AI-generated drafts and more current than static template libraries.

Accurate

Country-specific legal content

Drafted with legal expertise for each jurisdiction, far more thorough than AI-generated drafts that copy generic clauses across borders.

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Always current with the law

Templates carrying statute references are continuously updated as the law changes. Your document always reflects the current legal framework.

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Legal Considerations

PIPs are governed by the common law of employment, the provincial Employment Standards Acts, and the procedural and substantive duties under the provincial Human Rights Codes.

This template is for informational purposes only and does not constitute legal advice. Performance management has significant consequences for both employer and employee. Consult a qualified Canadian employment lawyer in your province for advice specific to your situation, particularly where: the employee has long service; the employee may have a protected-ground characteristic (disability, mental health, family-status caregiving); the role is senior or executive; or termination is being actively contemplated as an outcome.

Reviewed for Canadian common-law-province requirements

McKinley v BC Tel — Just Cause Framework

McKinley v BC Tel, 2001 SCC 38 is the leading Canadian authority on just cause for termination. The Supreme Court held that just cause requires a contextual analysis: the question is whether the employee's conduct (or pattern of conduct) gave rise to a "breakdown in the employment relationship" such that it can no longer viably subsist. A single isolated incident rarely justifies summary dismissal. For poor-performance terminations, McKinley supports the requirement of progressive discipline, clear notice of concerns, and a reasonable opportunity to improve — which is precisely what a PIP provides.

Honda v Keays — Moral Damages and Good Faith

Honda Canada Inc v Keays, 2008 SCC 39 established the modern "moderate approach" to moral damages on dismissal. Where the employer breaches its duty of good faith in the manner of dismissal (deceit, abuse of vulnerability, indifference to known mental distress, pre-determined termination dressed up as performance management), the employee is entitled to compensatory damages for the foreseeable mental distress. A genuine PIP — with real support, genuine review opportunities, and honest engagement — is the strongest defence against any later Honda-style moral damages claim.

Galea v Wal-Mart Canada — Punitive Damages

Galea v Wal-Mart Canada Corp, 2017 ONSC 245 awarded $250,000 in moral damages and $500,000 in punitive damages — total $750,000 — where Wal-Mart engaged in a callous, highhanded, insensitive course of conduct during a restructuring/PIP-like process that left the employee to "twist in the wind". Galea is the strongest cautionary precedent for PIP processes that lack genuine support, that pre-determine termination, or that are in substance a vehicle to push the employee out. The Expert past-incidents schedule, training budget and HR accommodation inquiry are all designed to defeat any Galea-style argument.

Progressive Discipline Doctrine

At common law, employers dismissing for poor performance are generally expected to have given the employee: (i) clear notice of the performance concerns; (ii) a reasonable opportunity to improve; (iii) genuine support and resources; and (iv) progressive consequences if improvement does not occur. The PIP is the canonical procedural vehicle for delivering all four. A for-cause termination without prior progressive discipline carries a high risk of being held to be wrongful at common law.

Constructive Dismissal Risk

A fundamental unilateral change to the terms of employment — a salary cut, a demotion, removal of core duties, change in reporting line, geographic relocation — may amount to constructive dismissal entitling the employee to leave and sue for wrongful-dismissal damages. A PIP that imposes fundamentally unreasonable goals, or that is in substance a termination dressed up as a performance plan, carries constructive-dismissal risk. The Expert constructive-dismissal protection clause expressly records that the PIP is procedural only and does not unilaterally change any fundamental term.

Human Rights Code Accommodation Duty

The provincial Human Rights Codes impose two distinct duties on employers. The substantive duty: to accommodate employees with protected-ground characteristics (disability, mental health, family-status caregiving, religious observance, etc.) to the point of undue hardship. The procedural duty: to inquire whether accommodation may be needed BEFORE imposing performance management, discipline or termination. The procedural duty arises where circumstances suggest that accommodation may be needed (e.g. a sudden change in performance, signs of mental-health distress, knowledge of a recent diagnosis or family event). Failure to inquire is itself discrimination, even if no actual accommodation would have been required. The Expert HR Accommodation Inquiry clause embeds the inquiry into the PIP itself.

Quebec — Excluded From This Template

Quebec uses a separate civil-law regime with distinct rules on dismissal, performance management and accommodation under the Charter of Human Rights and Freedoms (Charte des droits et libertés de la personne) and the Act respecting labour standards. A separate Quebec-specific PIP template will follow in a future sprint.

Frequently Asked Questions

Create Your Performance Improvement Plan Now

Build a McKinley-compliant, province-aware PIP in minutes. The Free version produces a self-executing plan with performance concerns, SMART goals, support resources, review schedule, consequences and employee acknowledgment. Upgrade to Expert to add the documented past-incidents schedule (defeats Galea-style "out of nowhere" arguments), the training budget and mentor assignment, the constructive-dismissal protection clause with ESA + HRC + common-law rights reservation, and the Human Rights Code accommodation inquiry that satisfies the procedural duty to inquire under the applicable provincial code.

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