TRACEY’S PRACTICAL EMPLOYMENT TIP
OF THE MONTH*

MARCH 2010: DOES MY EMPLOYER HAVE TO PUT ME ON A PIP BEFORE TERMINATION?*

A common question from clients is whether the company violated their rights by failing to put them on a performance improvement plan (“PIP”) before terminating them. The answer, in almost all instances, is no.

Company handbooks often contain provisions that provide for a process of verbal, then written warnings, you may receive before termination. In most instances, your company will follow those procedures. However, under New York law the handbook is not a contract between you and your employer. That is because most handbooks contain language stating that the handbook is not a contract and reserving the company’s right to follow its policies in its discretion. (This same restriction applies to promises in the handbook that the company will not retaliate for reporting violations of policy.)

That is why it is so important to “manage up” by seeking feedback on a regular basis as to how you are performing. In this way you can help avoid getting blindsided by a termination based on performance issues.

Next Month's Tip: WHAT TO DO IF YOUR MANAGER VIOLATES COMPANY POLICY

Monthly Tip Archive

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* Disclaimer: The contents of this page are for informational purposes only and nothing herein is intended to constitute legal advice nor should anything contained herein be taken or relied on as such. Each individual executive and employee has a unique set of facts and circumstances that the general discussion set forth above may be wholly inapplicable to. Only through consultation with a lawyer from our firm in which all of the facts and circumstances of an individual’s unique situation are explored and considered can a true legal assessment of your rights and remedies be ascertained. Any use of this information is taken solely at your own risk.