Common use of Performance Based Pay Clause in Contracts

Performance Based Pay. Pricing of work done on performance-based pay shall be based on the job-specific wage and performance norms for the work. The pricing wage corresponding to normal job performance in incentive pay work shall be 15 per cent higher than the job- specific wage for the work. Contract work shall be priced so that the wage when working at a normal pace of contract work is 20 per cent higher than the job-specific wage for the work. This shall also apply to incentive pay work in which the volume of work corresponding to the employee’s normal pace for contract work may be determined, for example by time and motion studies. The employee shall be paid at least the basic wage for work on performance-based pay. Before beginning performance-based pay work and agreeing on the unit price, the employee shall be entitled to information on the wage criteria for the work and on the manner of determining the wage. A written work specification submitted to the employee or to a group of employees shall specify both the volume of work on performance-based pay and the unit price. The employer shall agree the unit price of performance-based work with the employee(s) to whom it is offered before the work begins. If no agreement can be reached on the unit price of the work to be done, then it shall be priced in accordance with the collective agreement. The unit price shall remain unchanged when there is no change in the factors affecting pricing. The unit price and any underlying time value of work, i.e. the work value, shall correspond to actual circumstances and methods. An employee shall be paid at the personal time rate during any interruption in incentive rate work unless the work that has caused the interruption can be arranged at the incentive rate. If, at the employer’s behest and without advance notification, an employee has to interrupt an agreed direct contract that the employee has already begun performing on account of other work, and the work that has caused the interruption cannot be arranged at the incentive rate, then the employee shall be paid for the said work at the employee’s average hourly wage rate for up to no longer than six working days.