Underperformance Clause Samples
The Underperformance clause defines the consequences and procedures that apply when one party fails to meet specified performance standards or benchmarks outlined in the agreement. Typically, this clause sets out the criteria for measuring underperformance, the process for notifying the underperforming party, and any remedial actions or penalties that may follow, such as requiring corrective measures or allowing for contract termination. Its core function is to ensure accountability and provide a clear mechanism for addressing inadequate performance, thereby protecting the interests of the non-breaching party.
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Underperformance. 6.1 Subject to any event of Force Majeure, upon the determination of Underperformance in accordance with this Section 6, the Purchaser shall have the option to assume management control of the Company in a manner set out in Clause 6.3 below and the Founders will forthwith cease to have authority over the Business and the provisions of Clause 5 of this Agreement would cease to be effective,. The determination of the annualised Net Income of the Company under this Section 6 shall be made on the basis of past business practises and Management Information Systems adopted by the Company prior to March 31, 2007 as agreed between the Founders and the Purchaser.
6.2 For the purpose of this Section 6, “Underperformance” shall mean the following:
Underperformance. 97.1 Under this clause, procedures are established for managing underperformance by an employee.
97.2 This clause applies to all employees, except casual employees. In applying these procedures to officers on probation, or fixed term employees who have been engaged for a continuous unbroken period of less than two years, the head of service may determine that procedures and practices throughout Clause 97 may be applied on an appropriate basis according to the circumstances of the case, and in accordance with the principles of procedural fairness and natural justice.
97.3 The objectives of these procedures are to:
(a) provide advice and support to an employee whose performance is below standard; and
(b) to provide a fair, prompt and transparent framework for action to be taken where an employee continues to perform below expected standard.
97.4 Consistent with good management practice, concerns about unsatisfactory work performance should be raised by the manager with the employee at the time that the concerns arise. The manager should offer advice and support to the employee to overcome these concerns. The manager should inform the employee that the following procedures might be invoked if the work performance continues to be unsatisfactory.
97.5 These procedures must be applied in accordance with the principles of natural justice and procedural fairness and in a manner that promotes the values and general principles of the ACTPS.
97.6 In order to ensure that these procedures operate in a fair and transparent manner, the manager will be responsible for making written or audio records of all relevant discussions under these procedures. The employee must be given the opportunity to comment on any records before signing them.
97.7 The Directorate must adhere to record keeping and record disposal requirements of the TR Act and the associated Territory Administrative Records Disposal Schedule.
97.8 Where a manager considers that an employee‘s work performance is not satisfactory and the manager has previously discussed concerns about the employee‘s performance with the employee and the problem continues or recurs, the manager will inform the employee in writing of this assessment and the reasons for it. The employee will be invited by the manager to provide the manager with written comments on this advice, including any reasons that may have contributed to the recent standard of work performance of the employee.
97.9 After taking into account the comments from ...
Underperformance. In no event shall City be penalized for underperformance or non- performance, other than to have future and/or event-month payments reduced to reflect Delivered Capacity.
Underperformance. In the event Customer underperforms or fails to perform during a Test Event(s) or Demand Response Event(s), Customer’s Capacity Payments will be reduced by the applicable Underperformance Adjustment set forth above and such Underperformance Adjustment, if any, shall be offset against EnerNOC’s payments to Customer. In no event shall Customer be required to return previously distributed payments to EnerNOC, provided, however, that EnerNOC will reduce Customer’s future payments to account for any Underperformance Adjustment and that the portion, if any, of such Underperformance Adjustment that exceeds EnerNOC’s payments to Customer for a given Delivery Year may be carried over by EnerNOC to subsequent Delivery Years.
Underperformance
Underperformance. 23.1. Underperformance will be dealt with in accordance with the Ombudsman's Performance Development Program.