Bonus-malus system

Bonus-malus system,

Definition of Bonus-malus system:

  1. An incentive program designed to give a negative bonus for poor performance. This has recently become considered more seriously by corporations for employees or executives that fail to meet their objectives but are not necessarily dispensable. This system is also not widely adopted because employees tend not to accept or agree to this at the time of the employment contract.

Meaning of Bonus-malus system & Bonus-malus system Definition