Performance improvement policy

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What's a performance improvement policy and when do you need it?

You should have a performance improvement policy in place for your employees.

This policy covers what happens when an employee starts to perform poorly. It is applicable to all employees and workers. It does not apply to self-employed contractors, workers, and agency workers – you should refer to their contractual terms with you for the starting point when it comes to managing poor performance by these workers.

Sometimes an employee’s ability to perform their duties becomes affected, by all manner of factors, which might include the fact that the employee’s health deteriorates (temporarily or permanently), or perhaps the employee’s job has essentially changed over a period of time, and the employee is not able to keep pace with those changes and starts to struggle. That’s what this policy is designed to cover.

Our experts recommend that you do not give this policy contractual status in any employment contract that you put in place, but that you do reference it in that contract, make clear that the employee is expected to comply with this and your other policies and that you have the right to update or revise it, in your discretion and when you want to.

This template includes the statutory requirements, as well as optional elements for you to consider.