TRW & Co · Employment law
Performance Improvement Plans in Singapore: A Lawful Process for Employers and Employees
A performance improvement plan in Singapore is not required by statute, but it is often the best evidence that a performance-based exit was genuine. The Tripartite Guidelines on Wrongful Dismissal accept poor performance as a valid reason for dismissal with notice, provided it can be substantiated. This guide explains how to design, run and close a PIP, and what employees can do if one is unfair.
Key pointPoor performance justifies dismissal with notice, never without it, and a false stated reason makes a dismissal wrongful even if notice was paid. The PIP file is what proves the reason was real.
At a glance
No statutory PIP rule
The Employment Act does not require a performance improvement plan, but the tripartite framework expects poor performance to be substantiated before a dismissal on that ground.
Notice, not summary dismissal
The Tripartite Guidelines on Wrongful Dismissal say poor performance alone does not justify dismissal without notice; summary dismissal is reserved for misconduct after due inquiry.
False reasons are wrongful
If an employer states a reason for a dismissal with notice and that reason is proven untrue, the guidelines treat the dismissal as wrongful.
One-month claim window
MOM says employees should file a wrongful dismissal claim with TADM within one month of their last day of employment, before any tribunal hearing.
Six months for managers
Managers and executives dismissed with notice or salary in lieu need at least six months' service before they can bring a wrongful dismissal claim.
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The short answer: is a performance improvement plan in Singapore required by law?
No statute requires a performance improvement plan in Singapore. The Employment Act does not mention PIPs, and an employer can lawfully end most employment contracts by giving the contractual notice. But where the real reason for an exit is poor performance, a well-run PIP is usually the best evidence that the reason was genuine, that the employee was told what was wrong and that they had a fair chance to improve.
That evidence matters because of how wrongful dismissal works. The gazetted Tripartite Guidelines on Wrongful Dismissal treat poor performance as a valid reason for dismissal with notice, but expect the employer to be able to substantiate it. They also say poor performance alone does not justify dismissal without notice. If an employer states a reason that turns out to be untrue, the dismissal can be wrongful even though notice was paid.
So the practical question is not "must we have a PIP?" but "if this exit is challenged, what will the documents show?" A PIP that is specific, time-bound, supported and honestly assessed protects both sides. A PIP that is vague, rushed or launched straight after a complaint is often the centrepiece of the employee's case.
The legal framework behind PIPs
Several layers of law and guidance shape how a performance improvement plan in Singapore should be designed and used. None of them prescribes a template, which is why consistency and documentation do so much of the work.
The Employment Act and the contract
The Employment Act 1968 allows either party to terminate by giving notice, or salary in lieu of notice, in line with the contract or, where the contract is silent, the statutory minimum. Dismissal without notice is reserved for misconduct, and only after a due inquiry. Poor performance is not misconduct, so treating a missed target as a summary dismissal offence is a common and avoidable error.
The employment contract and handbook matter just as much. If the handbook promises a particular appraisal or capability process, departing from it gives the employee an argument that the dismissal was procedurally unfair or in breach of contract. Our employment policies team regularly finds that handbooks promise more process than managers actually follow.
The Tripartite Guidelines on Wrongful Dismissal
The Tripartite Guidelines on Wrongful Dismissal are the reference point for the Tripartite Alliance for Dispute Management (TADM) and the Employment Claims Tribunals (ECT). They define dismissal to include termination with notice, salary in lieu of notice and involuntary resignation. They list poor performance as a valid reason, and one illustration describes a valid dismissal with notice where the employer had documented performance reviews and the employee did not improve.
The guidelines also identify wrongful reasons: discrimination, depriving an employee of benefits such as maternity entitlements, punishing an employee for exercising an employment right, and giving a false reason. A PIP does not cure any of these. If the true motive is wrongful, the plan becomes evidence of pretext.
Fair employment and the Workplace Fairness Act
The Tripartite Guidelines on Fair Employment Practices already expect performance decisions to be based on merit and job-related criteria. The Workplace Fairness Act 2025 will put this on a statutory footing for employers with 25 or more employees. MOM has said it aims for the Act to take effect at the end of 2027. Once in force, appraisals and dismissals must not be based on protected characteristics such as age, nationality, sex, pregnancy, caregiving responsibilities, race, religion, disability or mental health conditions, and retaliation against employees who raise grievances will be prohibited. Our Workplace Fairness Act checklist covers preparation.
Personal data
Performance notes, ratings and PIP records are personal data. The Personal Data Protection Act 2012 allows employers to collect and use personal data without consent for evaluative purposes and for managing the employment relationship, but the data must still be accurate, protected and kept only as long as there is a business or legal purpose. See our guide to employee personal data under the PDPA.
What a defensible PIP contains
A performance improvement plan in Singapore is only as strong as its weakest element. Tribunals and mediators look for a plan that the employee could actually understand and achieve, not a list of grievances written after the decision to exit was made.
| Element | What good looks like | Common failure |
|---|---|---|
| Performance gap | Specific shortfalls tied to the job description, KPIs or past appraisals, with examples and dates | General criticism such as "attitude" or "not a team player" with no examples |
| Targets | Measurable, achievable standards that match what peers in the same role are expected to deliver | Targets set above the team norm, or changed mid-plan without explanation |
| Duration | Long enough to show change, often several weeks to a few months depending on the role and cycle | Two weeks to fix a quarterly sales result, or an open-ended plan with no end date |
| Support | Named coach, training, resources or reduced distractions, recorded in writing | Support offered in principle but never delivered |
| Review meetings | Scheduled check-ins with short written notes and the employee's comments | No meetings until a final "fail" letter |
| Consequences | Clear statement of possible outcomes, including extension, redeployment or termination with notice | Threat of summary dismissal, or no warning that the job is at risk |
| Decision maker | A second manager or HR reviews the outcome before any termination | The same manager designs, assesses and decides with no oversight |
Two points deserve emphasis when drafting a performance improvement plan in Singapore. First, the plan should reflect existing evidence: prior appraisals, feedback emails, sales figures or quality data. A PIP that appears from nowhere after years of satisfactory ratings invites the question of what really changed. Second, the targets must be achievable. Setting a bar nobody in the team meets is one of the clearest signs of a pretextual plan.
Running a performance improvement plan in Singapore step by step
The sequence below works for most roles. Adapt the timing to the job: a sales role may need a full quarter, an operational role may show change within weeks.
- Check the context first. Before issuing the plan, ask whether anything else is going on: a recent pregnancy announcement, a medical issue, a grievance, a salary claim or an imminent retrenchment exercise. Each changes the risk profile.
- Gather the evidence. Collect appraisals, KPIs, customer complaints and feedback already given. If there is little on file, consider informal feedback first rather than going straight to a formal plan.
- Draft the plan with HR. Set out the gap, the target, the timeframe, the support and the review dates. Use plain language and attach the job description.
- Hold the opening meeting. Explain the plan, give the employee time to read it, invite comments and record them. Ask the employee to acknowledge receipt, not agreement.
- Deliver the support and meet regularly. Keep brief notes of each review, including progress and any obstacles the employee raises. Adjust targets only for documented reasons.
- Assess honestly at the end. Compare results with the targets. If performance has improved, close the plan in writing. If it has partly improved, consider an extension.
- Decide the outcome with oversight. If termination is proposed, have a second decision maker review the file, confirm notice entitlements and prepare a termination letter that states the true reason accurately.
Write every PIP document as if a TADM mediator will read it, because one may. Short, factual, dated notes of what was discussed and agreed are far more persuasive than a long final memo prepared after the decision. If a manager would be uncomfortable reading the plan aloud to a tribunal, it should be rewritten.
Possible outcomes and how to end the plan
A performance improvement plan in Singapore can end in one of four ways, and each needs its own paperwork.
- Successful completion. Confirm in writing that the plan has closed and that normal performance management resumes. Do not leave the employee in limbo.
- Extension. Where there is real progress but not enough, extend once with clear reasons and a fixed end date. Repeated extensions suggest the plan was never meant to be assessed.
- Redeployment. A different role may suit the employee's strengths. Record the offer and the response, particularly if salary or grade would change.
- Termination with notice. Give the contractual notice or salary in lieu, and state the reason accurately. Do not dismiss without notice for poor performance.
On a challenge, the burden of proof differs. MOM's wrongful dismissal guidance says that for a dismissal with notice or salary in lieu, the employee must prove the dismissal was wrongful, while for a dismissal without notice, the employer must prove it was not. Managers and executives dismissed with notice need at least six months' service before they can file a wrongful dismissal claim.
Some employers offer a mutual separation agreement instead. That can be sensible, but the offer must be genuinely optional. Telling an employee to "resign or be dismissed" without a proper basis can be treated as an involuntary resignation, which the guidelines count as a dismissal. Our guide to constructive dismissal explains how forced resignations are assessed, and our executive exits page covers negotiated departures for senior staff.
When a PIP is a pretext: the employee's perspective
Employees often suspect that a PIP is simply a paper trail for a decision already made. Sometimes that is true. The signs include a plan issued shortly after a complaint, a pregnancy announcement, a request for flexible work or a salary claim; targets that nobody else meets; no support; no review meetings; or a replacement being recruited during the plan.
An employee who receives a PIP they believe is unfair should engage with it rather than ignore it. Practical steps include:
- Respond in writing, politely, identifying factual errors and asking for the support or resources needed.
- Keep copies of the plan, review notes, targets and your own results, within the limits of your confidentiality obligations.
- Raise a formal grievance through the company's process if you believe the plan is discriminatory or retaliatory.
- Seek advice early from your union, TADM or a lawyer, especially if you are asked to resign.
If the employment ends, the time limit is short. MOM says a wrongful dismissal claim should be filed with TADM within one month of the last day of employment. If mediation fails, the claim can go to the ECT, which hears claims up to S$20,000, or S$30,000 where the dispute has gone through tripartite or union-assisted mediation, according to the Singapore Courts. MOM told Parliament in 2026 that the ECT awarded compensation in 623 wrongful dismissal claims between 2020 and 2025, about 30% of those filed. Our wrongful dismissal guide explains the process in more detail.
Illustrative scenario: a regional account manager
This scenario is illustrative only and does not describe any real client or matter.
A Singapore subsidiary of an overseas group employs an account manager who has met targets for three years. A new regional head arrives, ratings drop, and within two months the manager is placed on a four-week PIP requiring a 40% increase in revenue in a quarter when the whole team is below target. Two weeks earlier, the manager had asked for a flexible work arrangement to care for a parent.
On these facts the plan is vulnerable. The targets are out of line with peers, the timeframe is too short for the sales cycle, and the timing follows a caregiving request. If the manager is dismissed with notice and the termination letter says "poor performance", the manager will argue the stated reason is false and the real reason was caregiving responsibilities.
A defensible approach would look different. HR would pause, review the prior appraisals, separate the flexible work request and handle it under the tripartite guidelines on flexible work arrangement requests, and set targets benchmarked to the team over a full quarter, with coaching from a named senior colleague. If performance still falls short after that, a termination with notice stating the documented reason would be far easier to defend.
Risks and common mistakes
Starting a PIP soon after a protected event
Launching a plan shortly after an employee announces a pregnancy, returns from maternity leave, raises a grievance, files a salary claim or requests flexible work creates an inference of a wrongful motive. The guidelines give examples of dismissals that are wrongful because they deprive employees of benefits or punish them for exercising rights.
This does not mean performance can never be managed in those periods. It means the evidence of the performance issue must predate the event and the decision should be reviewed by someone independent of the original manager.
Treating poor performance as misconduct
Summary dismissal is reserved for misconduct after a due inquiry. Failing to hit targets, even repeatedly, is not misconduct. If the real concern is dishonesty, negligence or refusal to follow instructions, run a proper disciplinary inquiry instead, with notice of the allegations and a chance to respond. Our workplace investigations page explains how to structure one.
Ignoring health and mental wellbeing
A sudden drop in performance can have a medical cause. Pressing ahead with a PIP without asking whether adjustments are needed can look like disability or mental health discrimination, which the Workplace Fairness Act will expressly cover. Where an employee discloses a condition, consider reasonable adjustments, medical input and a revised timeline, and keep that information confidential and separate from the general PIP file.
Stating the wrong reason in the termination letter
Employers sometimes describe a performance exit as a "restructuring" to soften it, or cite performance when the real reason is a headcount cut. The guidelines treat a false stated reason as wrongful. If the role is later refilled, the restructuring explanation collapses. State the true reason, briefly and accurately, and make sure the file supports it.
Copying a group template without localising it
Global PIP templates often assume a statutory capability procedure, a right to be accompanied or a minimum warning sequence drawn from another country's law. Using them unchanged can promise rights Singapore law does not require, which then become contractual expectations. Adapt the template to the Singapore handbook and notice provisions.
Cross-border angle: regional managers and work pass holders
Multinationals often run a performance improvement plan in Singapore under a regional manager based in London, Dubai, Shanghai or Dhaka. That is workable, but the reporting manager may not know Singapore notice rules or the tripartite framework. A local HR or legal reviewer should sign off on the plan and any termination.
For Employment Pass and S Pass holders, the end of employment also ends the basis for the pass. Employers must cancel the pass and handle repatriation obligations where they apply, so the exit timetable should be planned with the work pass position in mind. Foreign employees can still bring wrongful dismissal claims, and the one-month TADM window runs from the last day of employment whether or not they remain in Singapore.
Where a group-level decision drives the exit, for example a global performance calibration, check that the Singapore entity can show the decision was made on job-related criteria and that local process was followed. TRW & Co advises groups on coordinating exits across jurisdictions, working with Singapore counsel where tribunal or court representation is required.
What to do next
Whether you are an employer designing a performance improvement plan in Singapore or an employee who has just been given one, the same checklist applies.
- Confirm the performance concern is documented and predates any complaint, leave request or other protected event.
- Benchmark targets against peers and set a realistic timeframe for the role.
- Record the support offered and actually provided.
- Keep dated notes of every review meeting, including the employee's comments.
- Have a second decision maker review any proposed termination and the stated reason.
- Check notice, salary in lieu, leave encashment and work pass consequences before the exit.
- For employees: respond in writing, keep records and note the one-month TADM deadline.
Our employment disputes team advises on performance management, exits and claims, and our employment law Q&A hub answers common follow-up questions. To review a plan or an exit before it becomes a dispute, contact our team.
Frequently asked questions
01How long should a performance improvement plan last in Singapore?
There is no legal minimum or maximum. The plan should be long enough for the employee to show genuine improvement against the specific targets, which depends on the role. Operational roles may show change in a few weeks, while sales or project roles may need a full quarter or business cycle. A very short plan for a long-cycle role is a common sign of pretext. Set a fixed end date, schedule review meetings and, if progress is real but incomplete, consider one documented extension rather than an immediate termination.
02Can I refuse to sign a PIP?
You can decline to sign anything that says you agree with the assessment, but refusing to engage with the plan is rarely wise. It is usually better to sign only to acknowledge receipt, and to set out your disagreement in a short written response that corrects factual errors and asks for the support you need. Refusing a reasonable instruction to participate could itself become a conduct issue. Keep copies of the plan and your response in case the matter later goes to TADM.
03Can my employer dismiss me while I am on a PIP?
An employer can generally terminate with contractual notice at any time, but dismissing someone partway through a PIP undermines the argument that poor performance was the real reason. If the employer gives a performance reason that the file does not support, the employee may argue the reason was false and the dismissal wrongful. Dismissal without notice is only available for misconduct after a due inquiry, not for performance shortfalls.
04Is a PIP the same as a warning letter?
Not quite. A warning letter usually addresses conduct, such as lateness or breach of policy, and may form part of a disciplinary process. A PIP addresses capability or performance and sets targets, support and a timeline. Some employers combine the two, which can confuse the issue. Keep conduct and performance processes separate, so that it is clear whether any eventual dismissal is for misconduct after inquiry or for poor performance with notice.
05Does a PIP apply during probation?
Probation contracts usually allow termination on short notice, and many employers do not run a formal PIP during probation. However, a probationer can still bring a wrongful dismissal claim if the real reason was discriminatory or otherwise wrongful, subject to the service requirement for managers and executives dismissed with notice. Giving clear feedback and documenting the reasons for not confirming the employee is still good practice.
06Can a PIP be used in a retrenchment exercise?
It should not be used as a disguise for retrenchment. If the role is being removed for business reasons, the exit is a redundancy and should follow MOM's responsible retrenchment guidance, including any retrenchment benefit and the mandatory notification where it applies. Labelling a redundancy as a performance exit to avoid retrenchment costs risks a finding that the stated reason was false.
Sources and official materials
- Tripartite Guidelines on Wrongful Dismissal — Valid and wrongful reasons for dismissal, including poor performance
- Ministry of Manpower: Wrongful dismissal — Filing time limit, burden of proof and service requirement
- Employment Act 1968 — Notice, termination and misconduct provisions
- Singapore Courts: Cases eligible for employment claims — Employment Claims Tribunals claim limits and TADM referral
- MOM written answer on wrongful dismissal claims and claim limits (2026) — ECT outcomes for wrongful dismissal claims, 2020 to 2025
- MOM press release: Workplace Fairness (Dispute Resolution) Bill — Workplace Fairness Act timing and dispute process
General information only, current as at 5 November 2026. It is not legal advice and does not create a lawyer–client relationship. Singapore law and regulatory practice change; check current official sources and take advice on the facts of your matter.
