The Key Performance Indicators (KPIs) serve as a condition for evaluating the Employee’ task completion level. In addition, there are no regulations allowing the Employer to combine the salary scale and table with the KPIs to evaluate the the Employee’s task completion level and to raise his or her salary; also, there is not any guideline on what contents should be included in the salary scale and table. In practice, the salary scale and table often include such contents as positions, titles/levels and the salary plus corresponding allowances excluding KPIs. Moreover, as prescribed by labour law, the salary scale and table do not need to be notified and submitted to the local labour management State agency but if needed, the Employer could combine the salary scale and table with the KPIs system.
In other words, the Employer can issue pay
raise regimes in accordance with the Labour Code.
Besides, to make grounds for the unilateral termination of the
LC for the reason that the Employee regularly
fails to fulfil the tasks assigned, the Employer must specify the KPI system in
So, it will be more appropriate for the Employer to issue pay raise regimes in
combination with the KPIs system to evaluate the Employee’s performance;
accordingly, the Employer will have the grounds to not only unilaterally terminate
the LC if the Employee regularly fails to fulfil the tasks assigned but also
have the basis for raising salary recurrent for the Employee. Of note, the pay
raise regime combined with the KPIs should also be consulted with the
organisation presenting the Employee at the grassroots level before it is
Article 103 of the Labour Code
Article 36.1 (a) of the Labour Code