What does bonus-malus system mean?

bonus-malus system meaning in Law Dictionary

program that provides bad extra for a poor work done. If an employee doesn't satisfy goals they have been fined. Its maybe not a well known motivation system.

bonus-malus system meaning in Business Dictionary

a bonus program built to offer a negative bonus for poor performance. This has recently become considered more really by corporations for employees or executives that fail to fulfill their objectives but are not always dispensable. This technique can also be perhaps not commonly followed because staff members tend not to take or agree to this during the time of the employment agreement.