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FAQEmployee ManagementWho manages performance issues?

Who manages performance issues?

Last updated: May 15, 2026

Performance management is primarily the responsibility of the client company. As the operational employer, the client sets work expectations, conducts performance reviews, provides feedback, and decides whether performance standards are being met.

MalayHire's role in performance matters is to ensure that any formal action taken is compliant with Malaysian employment law. Specifically:

  • If the client wants to issue a formal performance improvement plan (PIP) or warning letter, MalayHire can provide templates and guidance to ensure the documentation is legally sound
  • If performance issues reach the point where termination is being considered, MalayHire must be involved — as the legal employer, MalayHire is responsible for ensuring the termination is for just cause and conducted correctly under Malaysian law

Do not proceed with a termination for performance reasons without first consulting MalayHire. Wrongful dismissal claims in Malaysia can be costly — MalayHire will advise on the correct procedure to minimise risk.