DRAFT

COMPANY POLICY
PERFORMANCE IMPROVEMENT PLAN

Purpose This policy guides superiors and employees in addressing the need to improve
performance, including problems in fulfilling the duties of a position by an employee. The
policy is based on the principle that performance issues are correctable thus providing the
employee the opportunity and provide support to improve their performance while still
holding them accountable for past performance.
Scope Applicable to all permanent and contract employees employed by the Company inclusive
of foreign workers and expatriate employees.
Revision XXXXX
date
Issued by Human Resource Department
Approved by Executive Director

1.0: Introduction
1.1: A Performance Improvement Plan (PIP) is a series of measure designed to help
improve employee’s performance. The PIP communicates the performance
discrepancies, when an improved level of performance is to be achieved and the action
steps that will assist the employee in meeting performance expectations.

1.2: PIP should be implemented to aid in correcting performance challenges associated

with the skills and expertise of employees and not be used to correct inappropriate
behavioural conduct or a violation of work rules.

1.3: To address and correct behavioural challenges, superiors should follow Company’s
Disciplinary Policy.

2.0: Definition of Poor Performance

Poor performance is defined as “performance results that for not meet the job requirements”.
An employee who is unable to meet the targets/objectives of “WHAT” set out for him/her by
the Company or superior.

3.0: Inclusion into the Performance Improvement Plan

An employee’s performance is determined during the annual performance appraisal exercise
or during any time of the financial year and therefore an employee can be put into PIP anytime
of the year.

4.0: Duration of the Performance Improvement Plan

4.1: The duration performance improvement plan is minimum three (3) months and
maximum nine (9) months.

4.2: A full PIP review shall be carried out by the employee’s superior quarterly basis and
the employee shall be informed on the outcome. Managers are encouraged to conduct
regular review on monthly basis apart from a full PIP review.

5.0: Performance Standard and Expectation

PIP communicates performance standards and expectations to assist an employee in
delivering their duties & responsibilities effectively. Effective performance standard and
expectation should consist the following elements.

5.1: Specific:
Performance standard should let employees know exactly which actions and results
they are expected to accomplish.

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 5.2: Measurable:
Whenever possible, objective and standard should be based on quantitative measures
such as direct counts, percentages, and ratios.

5.3: Attainable:
The objective or standard should be achievable, and set based on reasonable
productivity standard.

5.4: Relevant:
The performance standard should be relevant to the job responsibilities.

5.5: Timely:
Results should be delivered within a time that meets the department and Company’s
needs.

5.6: Supportive Measures:

Any reasonable steps the superior agrees to put in place to support improvement such
as training, coaching or mentoring; additional supervision, reallocation of duties,
additional support from colleagues, change in process, new software or equipment
and reasonable adjustments.

5.7: Feedback:
Regular feedback session should be put in place to let employee know whether they
are on track to deliver the required performance improvement.

6.0: Outcome of the Performance Improvement Plan

6.1: Should the employee’s performance meet the expectation at the end of the review
period, he/she will be successfully opted out from PIP.

6.2 An employee who successfully completes PIP shall remain in current position and is
required to continue to maintain his/her performance level.

6.3: An employee who did not meet the expected performance after review period can be
demoted to a lower job grade or dismissed from employment.

7.0: Superior Responsibilities

7.1: Superior must communicate performance issues to the employee via a face to face
discussion in a confidential manner.

7.2: Superior shall provide constructive feedback to an employee periodically or as frequent

as possible throughout the review period and document all communications.

7.3: If the issue is a result of lack of skills or knowledge, superior is expected to provide
and/or arrange for necessary training, resource, tool, support, and environment to
enable employee to perform his duties.

8.0: Employee’s Responsibilities

8.1: Employees must be accountable to ensure they fulfil their duties and responsibilities
of their positions, as outlined in their job descriptions and targets assigned by their
superiors.

8.2: Employees are advised to seek adequate information and feedback on their
performance and deliverables from time to time and reach out to their superiors if any
support is needed.

8.3 Employees must understand that if their work performance falls below the required
standard of their role, superiors will be obliged to address this and seek advice from
Human Resource.

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9.0: Human Resource Responsibilities
9.1: Human Resource acts as a mediator between the superior and employee to ensure a
smooth implementation of PIP.

9.2: Human Resource manager sits in with superior and employee during reviewing period
of the employee to ensure a fair and consistent review is done.

9.3: Human Resource manager may further provide valuable feedback to the employee
and address any concerns raised by them.

10.0: Process of Performance Improvement Plan

10.1: Phase 1 (Duration: 1 – 3 months)
10.1.1: The superior holds a formal meeting to discuss concerns regarding
employee’s performances and formalises this in writing by issuing a PIP
Notification letter. This letter informs the employee that he/she has been
formally placed under the PIP.

10.1.2: The superior establishes an action plan guided by a PIP form aimed at
correcting the employee’s performances. The action plan consists of
mutually agreed objective or target with appropriate timeframe given.

10.1.3: The superior need to identify and propose additional training required for the
employee to enhance his/her skill and knowledge to perform at the expected
level. Besides training, superior must provide coaching, adequate resources,
and tools for the employee to perform effectively.

10.1.4: At the end of the Phase 1, superior conducts a review and evaluate
employee’s performance in the last three (3) months. If satisfactory progress
has been made, employee will be notified in writing and will be opted out
from PIP.

10.1.5: As part of the PIP process, superior provides regular feedback on the
employee’s performance indicating the extent to which the employee is on
track to deliver the improvements set out in the programme.

10.1.6: Following a successful completion of PIP, superior continues to monitor

employee’s performances for a duration of maximum six (6) weeks.

10.1.7: If the progress has been at insufficient level, the superior proceeds the PIP
to Phase 2 with further extension of three (3) months.

10.1.8: Employee will be issued a stern warning due to the him/her failing to meet
the expected performance level.

10.2: Phase 2 (Duration: 4 – 6 months)

10.2.1: The employee’s superior holds a meeting to formally consider the
employee’s incapability to carry out his/her role.

10.2.2: At this Phase, the superior should also seek to establish if there is any new
or change objective or target to be considered to the employee’s
circumstances which are affecting him/her ability to reach the required level
of standard and performance.

10.2.3: Superior continues to provide necessary support measures and coaching for
the employee to perform effectively.

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 10.2.4: At the end of the Phase 2, superior conducts a review and evaluate
employee’s performance in the last extended of three (3) months. If
satisfactory progress has been made, employee will be notified in writing
and will be opted out from PIP.

10.2.5: Following a successful completion of PIP, superior continues to monitor

employee’s performances for a duration of maximum six (6) weeks.

10.2.6: If the progress again has been at insufficient level, the superior proceeds the
PIP to Phase 3 with further and final extension of three (3) months.

10.2.7: Employee will be issued a final warning due to the him/her failing to meet
the expected performance level.

10.3: Phase 3 (Duration: 7 – 9 months)

10.3.1: The employee’s superior holds a formal meeting to discuss on the
continuous performance deficiencies that need to be improved immediately.

10.3.2: Superior discuss with employee and readjust or further specify the objective
or target where required. Superior should also emphasize examples of
unmet objective or target in previous months and the details of the business
impact.

10.3.3: Superior continues to provide necessary support measures and coaching for
the employee to improve his/her performances.

10.3.4: At the end of the Phase 3, superior conducts a review and evaluate
employee’s performance in the final extended of three (3) months. If
satisfactory progress has been made, employee will be notified in writing
and will be opted out from PIP.

10.3.5: Following a successful completion of PIP, superior continues to monitor

employee’s performances for a duration of six (6) weeks.

10.3.6: If the progress has been insufficient or no overall improvement despite the
superior has taken reasonable steps to allow the employee to perform at an
acceptable level, but that these measures have not worked; then, Human
Resource will proceed with further action.

10.3.7: Human Resource will issue a show cause letter to the employee to seek
explanation for his/her continued underperformances in the last nine (9)
months.

10.3.8: Human Resource will peruse through all the evidences and documents
presented by superior. Human Resource will further consider the details of
the underperformances, the support given by superior, the impact of the
underperformances to the Company and the employee’s explanation of the
show cause letter for his/her continued underperformances.

10.3.9: Human Resource will provide the decision in writing within five (5) working
days. The potential outcome of the decision may include demotion, or
dismissal with notice.

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11.0: Demotion
11.1: Demotion will be at Company’s discretion subject a suitable vacancy exist and the
Company is confident that the employee will be able to perform well in such role.
Further, it will normally be offered only as an alternative to dismissal in circumstances
in which the organisation is satisfied that the employee should no longer be allowed to
continue to work in their current role.

11.2: The offer will be issued in writing and the employee will have five (5) working days to
consider the offer and respond in writing.

11.3: If demotion is accepted, the new terms and conditions of the role and grade will apply.
The Salary shall be revised accordingly to the salary structure of the identified role.

11.4: Refusal of the offer will normally result in termination of employment.

12.0: Dismissal
12.1: Dismissal on the grounds of continuous unsatisfactory performance and there is no
alternative role available or suitable for the employee in the Company.

12.2: Any dismissal will be with full payment in lieu of notice.

12.3: The decision to dismiss together with the reasons for dismissal will be set out in writing
to the employee.

13.0: Appeal
An employee has the right of appeal against a sanction issued under Stage 3 of this procedure.
A request of an appeal should be sent in writing to the Executive Director of the Company and
set out the grounds on which the employee believes that the decision was flawed or unfair.
The request should be sent within five (5) days of the employee receiving written confirmation
of the decision imposed on him/her.

14.0: Sanctions
Superiors and employees who violates or manipulates this policy for whatsoever reasons shall
subject to disciplinary action which may include termination.

15.0: Equality & Diversity

This policy aims to promote diversity, fairness, social justice, and equality of opportunity by
adopting and promoting fair policies and procedures.

16.0: Monitoring & Reporting

This policy will be reviewed regularly to ensure compliance with applicable legislative changes,
changes within Company and best practice.

17.0: Documentation
17.1: PIP objective or target and subsequent review shall be documented where a copy is
provided to the employee concerned.

17.2: The objective or target to be achieved during PIP shall be clearly defined which should
consist the expected outcome and deadlines.

18.0: Restriction
During PIP, employees shall not attend business trips and/ or external/internal trainings unless
it is necessary as part of his/her improvement plan. Employees are also prohibited to apply for
other positions that becomes available during the course of PIP.

19.0: Others

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 19.1 The Company reserves the right to amend this policy from time to time and shall notify
all employees when such amendment has been made and has been approved by the
Management.

19.2 Should there be a translation of this policy into other languages, the English version of
this policy shall be authoritative in the event of any dispute or confusion.

*Additional Clause to consider for company with Trade Union:

This policy is also applicable for an employee who is a trade union member. During the formal stages
of demotion and dismissal of this policy, the employee has the right to be accompanied by the trade
union representative.

The employee is responsible for making the necessary arrangements and liaising with their trade union
representative

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