A Performance Improvement Plan (PIP) is a structured, time-bound process used to address ongoing employee performance concerns.

A PIP sets clear expectations, measurable goals, and a timeline to help an employee improve within a defined period. It should be framed as a genuine opportunity to continue the employment relationship, not as a step toward exit.

Day-to-day performance management sits with you as the employee's manager. Remote People (RP), as the legal Employer of Record, does not sit in on coaching conversations or performance discussions, and does not need to review or approve the PIP itself. This keeps the process practical and lets you manage your team the way you normally would.

Your responsibilities during a PIP include:

You don't need to involve Remote People for routine performance management. However, please notify your Remote People contact as soon as either of the following becomes likely:

Flagging this early allows us to prepare the next steps in good time, including any country-specific requirements that may apply.

A PIP may be appropriate in situations such as:

When an employee repeatedly fails to meet expected performance standards despite informal feedback or coaching.

When previous performance discussions or corrective actions have not resulted in improvement.

When additional training, guidance, or support may help the employee improve performance.

When workplace behavior negatively impacts productivity, collaboration, or team dynamics and previous corrective efforts have not been successful.

As the PIP is owned and run by you, the steps below are ones you carry out directly. Remote People does not provide step-by-step guidance on local labor law compliance during the PIP itself, but is available if you have questions or if the situation may lead to a Warning Letter or termination.

Provide clear and factual examples of the performance or behavioral issues.

This may include:

Set specific improvement goals and expectations. These goals should be:

Consider including support measures such as:

Hold regular check-ins throughout the PIP period to review progress, discuss challenges, and provide feedback.

Let the employee know the potential consequences if the required improvements are not achieved.

At the end of the PIP period, review the employee's progress to determine the appropriate next steps.

Possible outcomes may include:

If the PIP does not resolve the issue and you anticipate needing to issue a Warning Letter, contact your Remote People representative as early as possible so we can advise on the requirements for the employee's country.

A PIP generally lasts between 30 and 90 days, depending on the nature of the performance concerns and the employee's role.

Typically 30 to 90 days with regular progress reviews.

A PIP is a good management practice, but on its own it is not automatically a valid legal basis for termination in every country. Employment laws vary significantly by jurisdiction, and running a PIP the wrong way (or treating it as sufficient grounds for dismissal where it isn't) can expose you to legal or compliance risk.

Remote People will advise you on the appropriate process and legal requirements for the employee's specific country before you rely on a PIP as part of any termination decision.

If you have questions about starting a PIP or managing a performance concern, contact support@remotepeople.com