KEY PERFORMANCE INDICATORS AND EMPLOYMENT CONTRACTS IN MALAYSIA: A LEGAL ANALYSIS
Key performance indicators (KPIs) are considered as measurable values used by for companies, institutions, or organisations in order to estimate the success rate of their set objectives. Therefore, it is important to select appropriate indicators that will be used for the measurement. In Malaysia, the KPI came into the spotlight when the Prime Minister introduced it for measuring the performance of the cabinet ministers in 2009. Since then, KPIs became the focus in the private and the public sectors in Malaysia. Thus, this article attempts to examine the values behind KPIs and its function within the contract of employment. The article further examines whether non-performance of KPIs can be categorised as poor performance, which could open employees to termination or disciplinary actions. This article is mainly based on the analysis of existing literature, journal articles, books, information obtained in online news portals and judicial decisions. The article finds that non-performance of KPI can be used as a basis to terminate or dismiss an employee from employment.
- Consent to publish: The Author(s) undertakes that the article named above is original and consents that the IIUM Press publishes it.
- Previous publication: The Author(s) guarantees that the article named above has not been published before in any form, that it is not concurrently submitted to another publication, and that it does not infringe anyone’s copyright. The Author(s) holds the IIUM Press and Editors of IIUM Law Journal harmless against all copyright claims.
- Transfer of copyright: The Author(s) hereby transfers the copyright of the article to the IIUM Press, which shall have the exclusive and unlimited right to publish the article in any form, including on electronic media. The Journal in turn grants the Author(s) the right to reproduce the article for educational and scientific purposes, provided the written consent of the Publisher is obtained.