Forced to Resign After Unfair PIP: Can I Get My Notice Period Salary? Seeking Legal Insights

Hello Leader HRs,

I am facing a situation wherein I am forced to submit my resignation after a Performance Improvement Plan (PIP) review of unachievable goals. I have a 3-month notice period clause in my Letter of Appointment (LoA). I just want to seek your feedback on whether I am eligible to receive my salary in lieu of the notice period. I want to understand if I am legally in the right or wrong. I believe the reasons given during the PIP process were merely a way to dismiss the employee.

Thank you.

Performance Improvement Plan (PIP)

Let us start from the process flow mapped to PIP for your understanding. A Performance Improvement Plan (PIP) is a formal method of correcting behavior/performance and encouraging an employee’s success. If your performance is below average, the manager needs to develop a performance improvement plan in agreement with your views.

In case the manager has changed, the previous manager and the new manager should jointly develop the PIP. The previous manager should provide support in developing the PIP in consultation with the new manager, and the new manager should track the PIP. The PIP period must be a specified time period—3 months is normally suggested. This timeframe is provided for you to improve. If there is no improvement, then as per the clause of your appointment letter and PMR policy, you will be informed to resign amicably. The salary will be provided as this is a resignation case.

This is not a forced separation, but as per the workflow, you were informed well ahead of the consequences. You should have all the documents of the PIP, the action plan, and the final comments. Don't be tense; the company has given you time to improve. Look out for new opportunities and learn the areas of improvement.

Thanks,
Neena Reddy

Thanks for your inputs, Neena. The thing is, this case is more of a commercial issue. Since I am a high-paid employee, they framed such a PIP which was unattainable. I discussed with my line manager many times about that, but he always replied it's his manager's call and can't modify it.

When I reached out to HR about the targets and other biases happening, he was also helpless. I thought the PIP review might be a one-time opportunity to highlight my concerns, and I did that. But I could sense helplessness from their response as well.

They also agreed to my areas of concern in the call, but to my surprise, I received a call from my HR to resign.

Today, I have finally resigned and am eager to know if the salary for the notice period will be given to me, as COVID has actually frightened me.

Appreciate your time and thoughts.

Performance Improvement Plan and Resignation

The poster seems to have agreed to the PIP despite knowing well that the standards set were unattainable. To avoid the stigma of termination by the employer, he would have resigned. Therefore, as per the notice clause, he has to serve the notice period or pay in lieu thereof. If the employer accepts his resignation with immediate effect, it implies that the notice is waived by the employer.

If he feels that he was actually coerced to resign and the PIP is a tool to make it seem like he is not suitable for the job, it amounts to constructive dismissal, and he can fight it appropriately.

As it stands, in my opinion, he is not entitled to any notice salary.