First, it is not correct that “at will” employees can be terminated for “any” reason. While most people, lawyers and judges seem to believe that, it is a very incorrect statement. What is true is that “at will” employees can be terminated for “any proper” reason. So, employers cannot terminate employees for improper reasons, such as discrimination, retaliation, harassment, because they will not engage in improper or illegal behavior, and/or many other “improper” reasons. Second, employers are not required to pay severance when someone is terminated, but when severance is paid, it is not due to any “requirement.” Rather, severance is paid to reduce risks, including risks that employees will claim they were fired for “improper” reasons. Performance Improvement Plans are almost always instituted (a) to create a seemingly “proper” reason (and paper trail) to fire someone (b) in order to deny them severance, and possibly even unemployment benefits. By instituting Performance Improvement Plans (or “PIP’s”), employers (i) humiliate, (ii) infuriate, and (iii) intimidate employees. Then, as a direct result: • Often after a PIP, an employee will quit in disgust; presto: no severance and even no unemployment benefits, and the employer does not have to explain to anyone why they wanted the employee to leave. • Often after a PIP, an employee will feel intimidated, and simply accept his or her termination; presto: no employee request or expectation of severance, and the employee will be too intimidated to ask for a reason for his or her being singled out. • Often, after a PIP, an employee will feel infuriated, and either shout or engage in some other bad conduct; presto: they are then fired for “cause” and given no severance and not entitled to unemployment benefits. • Often after a PIP, HR will say to an employee, “You know, your resume would look so much better if you resigned, than were fired; we will ‘let you’ resign, as a favor.” Presto: no severance, no unemployment benefits, and the employer does not have to give a reason for pushing the employee out. • Often, after a PIP, HR will say to an employee: “If you resign, in the future you may come back and work for this company. But if you are fired for performance reasons, you can never come back.” Presto: the employee quits, without request or expectation of severance, and is even denied unemployment benefits. • Often, after a PIP, HR will say to an employee, “If you resign we can give you a neutral reference, and maybe we will even not contest your application for unemployment.” Presto: no severance, and no need to provide a reason for wanting an employee to leave. So, many times PIP’s are used to hide improper reasons for wanting an employee to leave, when the real reason is improper. Also, using PIP’s helps employers reduce severance costs, and even lowers their unemployment insurance premiums, which are based on how many of their employees collect unemployment benefits. While some Performance Improvement Plans are honest and in good faith, such good faith use of PIP’s is quite rare. Most are false and fraudulent, and so very upsetting. I believe it is the humiliating, the infuriating and the intimidating effects of the vast majority of Performance Improvement Plans that are the source of their power for employers, and the essence of their evil.
Well said: bottom line, is this is standard practice for every healthcare company (small & big pharma, device, CRO, biotech, et al). The best thing we as employees can do is recognize the PIP for what it is - a reason to go find a better job.
if you receive a PIP or are on one----Get the heck out of the company----it never ends well for you. They have it in for you to be gone and you will be gone. take the pay while you are looking for another position and then start the other job and keep getting paid from the other place until its time to go.
