Performance improvement plans in NZ: what a PIP means and what to do

What a PIP is and is not under NZ law

"Performance improvement plan" is not a term defined in New Zealand employment law. Employment New Zealand describes a PIP as a tool managers can use: a written plan that sets out the concerns, what good performance looks like, the steps you need to take, the support you will get, and how long you have.

What matters legally is how it is used. Your employer must act in good faith, and Employment New Zealand says that means giving you a real opportunity to improve your performance and helping you to do so. If a PIP ever leads to dismissal, the test is whether the employer's actions were what a fair and reasonable employer could have done in all the circumstances.

A PIP is often, but not always, the first formal step in a process that could end in warnings or dismissal. Some are genuinely about helping someone succeed in a changed role. Treat it seriously either way, and do not assume the outcome is decided.

Fair process and what you are entitled to

A fair performance process usually includes:

• Specific concerns, with examples, rather than a general sense that things are not working.
• Clear, practical steps and what success looks like, so you know exactly what is expected.
• A realistic timeframe to improve, with regular check-ins.
• Support, such as training, clearer priorities or more supervision.
• The chance to respond before any decision is made, and to bring a representative or support person to formal meetings.

The law does not require a set number of warnings before dismissal, but Employment New Zealand recommends at least a written warning and a final written warning. If you believe the process is unfair, you can raise a personal grievance, which must be done within 90 days, and Employment New Zealand offers free mediation. Different dismissal rules have applied since 21 February 2026 to people earning $200,000 or more a year, with a transition to 21 February 2027 for many people already in their job, so check Employment New Zealand's guidance if that includes you. If you are within a valid 90-day trial period, you generally cannot bring a grievance for unjustified dismissal either. Our guide to employment rights in New Zealand covers the basics.

Responding in writing

After the first meeting, reply by email. Keep it calm and factual:

• Confirm what you understand the concerns and targets to be.
• Give your side where the facts are different, with examples and dates.
• Name anything that has affected your work, such as workload, unclear priorities, a health issue or a lack of training, and what would help.
• Ask for anything unclear to be made specific: what exactly counts as meeting the target, and by when.

A written reply creates a record of your understanding at the start, and it often makes the targets more realistic. If a union, lawyer or advocate is available to you, now is the time to talk to them.

Keeping your own record of every meeting

Keep your own notes of every check-in: the date, who was there, what was said, what was agreed and what you were asked to do next. Send a short summary email after each meeting ("Thanks for today. My understanding is that...") so the record is shared.

Keep evidence of your progress as it happens: completed work, positive feedback, targets met. If the outcome is ever disputed, notes made at the time are strong evidence. Our guide to one-to-one meetings covers how to keep useful notes.

The demo opens with no account and shows Your Career: dated notes of each 1:1 with what was agreed and the feedback given, wins recorded with the numbers they moved, and a job hunt that can run alongside, privately.

Preparing a quiet exit in parallel without giving up

Working hard to meet the plan and preparing an alternative are not in conflict. Some people come through a PIP well; others decide the role is no longer right for them. Having options reduces the pressure either way.

Update your CV, get back in touch with a few contacts, and look at what is being advertised, without making it obvious at work. Keep the search off work systems. Our article on job hunting while employed covers how to keep it private. Look after yourself too: a PIP is stressful, and talking to your GP, your employee assistance programme if your workplace has one, or someone you trust is sensible.

Keep your own record from the first meeting