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Free letter template · Word

PIP Failure Letter

A PIP failure letter informs an employee, factually and respectfully, that the goals of their performance improvement plan were not met by the end date. It summarises the support given and the results, explains the next steps under company policy and gives the employee an opportunity to be heard before any final decision.

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Preview of the letter

[Highlighted] = fill in
[Company Logo][Company Name]

LETTER – OUTCOME OF PERFORMANCE IMPROVEMENT PLAN

Ref. No.:
[Reference Number]
Date:
[Date]

Strictly Private and Confidential

To,
[Employee Name]
Employee ID: [Employee ID]
[Designation], [Department]
[Work Location]

Subject: Outcome of Performance Improvement Plan (Ref. [PIP Reference Number])

Dear [Employee Name],

As you know, you were placed on a Performance Improvement Plan from [DD/MM/YYYY] to [DD/MM/YYYY] (extended until [DD/MM/YYYY], if applicable). During this period, review meetings were held on [DD/MM/YYYY], [DD/MM/YYYY] and [DD/MM/YYYY], and the company provided the following support: [training, weekly coaching, buddy support, revised territory, etc.].

At the final review on [Date], the results against the plan goals were as follows:

PIP GoalExpected ResultActual Result
[Goal 1][Expected][Actual]
[Goal 2][Expected][Actual]
[Goal 3][Expected][Actual]

Based on these results, the goals of the plan have not been met. We recognise the effort you have made during this period.

Before any decision is taken, we would like to hear from you. You are invited to a meeting on [DD/MM/YYYY] at [Time] at [Location / video link] with [Reporting Manager] and [HR Name]. You may also submit a written response by [DD/MM/YYYY]. At the meeting the company will consider your response along with the options available under its policies, which may include [redeployment to a suitable role / change of responsibilities / separation in accordance with your appointment terms].

If you have any questions in the meantime, please contact [HR Name]. Please sign the duplicate copy to acknowledge receipt.

Yours sincerely,

For [Company Name]
[Authorised Signatory]
[Designation]
Received by
[Employee Name]
Date: [Date]

What this template includes

  • PIP reference, dates and reviews held
  • Support provided during the plan
  • Factual comparison of goals and results
  • Options being considered under policy (e.g. redeployment)
  • Invitation to a meeting and right to respond in writing
  • Respectful, non-judgemental tone

When to use it

  • PIP goals were not met at the final review despite support
  • An extended PIP has also ended without the goals being met
  • Before a decision on redeployment, demotion or separation
  • To document the PIP outcome fairly in the personnel file

How to customise this template

  1. 1Quote actual results against each PIP goal
  2. 2List every review held and support provided
  3. 3State the options your policy allows, such as redeployment to a suitable role
  4. 4Give a realistic date and time for the employee’s response meeting
  5. 5Have HR and, where needed, a legal adviser review the letter

HR tips

  • Do not state a final termination decision before hearing the employee
  • Consider whether a different role would suit the employee’s skills
  • Keep language neutral; describe results, not character
  • Allow the employee to bring their written submission to the meeting

This template is a starting point. Review it against applicable labour laws, state rules, your standing orders and HR policies, and with a legal adviser where needed, before issuing it.

For HR & hiring managers

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Frequently asked questions

What happens if an employee fails a PIP?+

The company considers next steps under its policies, such as redeployment, role change or separation, after giving the employee an opportunity to respond.

Should a PIP failure letter terminate employment?+

Best practice is to first inform the employee of the outcome and hear their response. Any separation should follow the appointment terms, policy and applicable law.

Can an employee respond to a PIP outcome?+

Yes. The letter should invite a written response and a meeting before any final decision is made.