Should I Stay Or Should I Go? Performance Management Or Exit Option?

In Ireland, a performance – related dismissal can often become a long and burdensome process for employers. While performance management procedures are designed to get an underperforming employee back on track, adherence to such processes also provides an employer with a stateable defence to any potential unfair dismissal claim.

As businesses seek to streamline and speed up their internal processes, there has been increased appetite to explore the ‘PIP or Go’ model. This involves a calculated-risk approach, arguably “skipping” the fair process element of the dismissal and simply offering the employee the option of an exit instead of a performance process. While this approach can speed up internal processes, it comes with a “price tag” of (i) an ex gratia termination payment; and (ii) potentially significantly increased risk exposure for the employer should a waiver agreement not be secured.