Was your Performance Improvement Plan (PIP) a sham? Negotiating a Settlement Agreement after unfair performance management.

If you are an employee in the North West - from a corporate office in Manchester to a factory floor in Wigan - and you’ve recently been placed on a Performance Improvement Plan (PIP), you may already suspect it’s a precursor to dismissal.

Often, a PIP is not a genuine attempt to improve performance but a flawed, unfair process designed solely to build a paper trail for a future dismissal. If you believe your PIP was a sham or the management was unfair, you have strong grounds for an Unfair Dismissal claim.

At MBH Solicitors, we are specialists who turn the injustice of a flawed PIP into immediate leverage for a protected, confidential Settlement Agreement, ensuring you leave with a maximised financial package.

The problem: When a PIP becomes a path to dismissal

A legitimate PIP should involve clear, achievable goals, adequate support, and regular, fair feedback. However, many employers in the North West use PIPs improperly:

• Unfair Goalpost: Goals are made deliberately vague, unachievable, or shift without warning.
• Lack of Support: The employee is given impossible targets without the necessary training, resources, or management support.
• Pre-determined Outcome: The decision to dismiss was made before the PIP even began; the process is simply window dressing.
• Discrimination Under the Hood: The PIP is used to mask underlying issues related to age, gender, disability, or whistleblowing.

If your PIP process was unfair, it fundamentally compromises the fairness of any subsequent dismissal, giving you a powerful claim for Unfair Dismissal at an Employment Tribunal.

Your leverage: Turning unfairness into a Settlement Offer

Once an employer offers a Settlement Agreement following a flawed PIP, they are signalling one thing: they know their disciplinary process is vulnerable to legal challenge.

Our strategy is to use the clear procedural flaws in the PIP to demonstrate the high risk of litigation (and cost) for the employer:

• Assess the Flaws: We gather evidence to prove the PIP was procedurally unfair (e.g., lack of training, unreasonable timelines, lack of objective metrics).
• Calculate the Risk: We quantify the potential compensation the employer faces from an Unfair Dismissal claim (which can exceed £100,000 for a successful challenge).
• Demand a Premium: We use this massive litigation risk as leverage to demand an enhanced severance package that is significantly higher than the employer’s initial offer.

Essential checks for your Settlement Agreement

When negotiating your exit after a disputed PIP, we ensure the Settlement Agreement protects you beyond the money:

• Agreed Reference: We secure a clean, factual reference that avoids mentioning the PIP or performance issues - critical for job applications in Liverpool or Preston.
• No Admission of Guilt: The agreement must state that the compensation is paid without any admission of wrongdoing by either party, protecting your reputation.
• Confidentiality: The negotiated exit remains confidential, ensuring future employers are unaware of the internal dispute or the PIP process.

Act fast: Time is your greatest ally

If you are currently on a PIP or have just been offered a Settlement Agreement, you are at a critical decision point. Time spent documenting the unfairness of the PIP is the best investment you can make in your severance package.

Your employer is legally required to pay a contribution towards your legal fees. Use this resource to hire a specialist who knows how to legally dismantle a sham PIP.

If you believe your PIP was unfair, stop communicating with your employer and call the Settlement Agreement experts immediately:

Call MBH Solicitors now.

Until any changes become law, however, making a valid will remains one of the most important ways for unmarried couples to protect each other.

What should unmarried couples do now?

Whatever happens with the proposed reforms, cohabiting couples should not assume that they currently have the same legal protection as married couples.

There are practical steps you can take now, including:

• Make a will: This can help ensure your partner is provided for if you die.
• Consider a cohabitation agreement: This can set out how property, finances and other assets should be dealt with if you separate.
• how you own your property: If you live together, consider whether the way the property is held properly reflects your respective contributions and intentions.
• legal advice: If you are separating or have concerns about your financial position, advice based on the current law can help you understand your options.

What happens next?

The consultation is now closed and the Government will need to consider the responses before deciding what happens next. Any proposed reforms would need to go through the legislative process before becoming law.

For now, the current law continues to apply.

If you are an unmarried couple, don't rely on the idea of a “common law marriage”. There is no general legal status of common law marriage in England and Wales, and simply living together does not give you the same legal rights as marriage.

If you are concerned about your rights, particularly regarding your home, finances or inheritance, getting advice now can help you understand your position and the steps you can take to protect yourself.

Need advice about cohabitation or separation? Contact the MBH family law team on 01942 206060 or email mbh@wigansolicitors.com for a free, 30-minute, no-obligation consultation.

🌐 www.wigansolicitors.com
📞 01942 206060
📩 mbh@wigansolicitors.com