A retention bonus agreement is a document that outlines the terms and conditions under which an employee will receive a bonus for staying with a company for a certain period of time. Such agreements are common in companies where the loss of key employees could have a significant impact on the business. In this article, we will provide retention bonus agreement samples to help you understand what such agreements look like.

Sample #1: Retention Bonus Agreement for Key Employee

This agreement is for a key employee who has been identified as critical to the success of the company. The agreement outlines the following terms:

– The employee will receive a bonus of [dollar amount] if they remain with the company for [number of months/years].

– The bonus will be paid in [one lump sum/ installments].

– The employee must not give notice of their intention to leave the company during the retention period.

– The employee must be in good standing with the company at the end of the retention period to receive the bonus.

Sample #2: Retention Bonus Agreement for Entire Workforce

This agreement is for the entire workforce of a company. The agreement outlines the following terms:

– All employees who remain with the company for [number of months/years] will receive a bonus of [dollar amount].

– The bonus will be paid in [one lump sum/ installments].

– The employee must be in good standing with the company at the end of the retention period to receive the bonus.

– The company reserves the right to adjust the bonus amount or requirements at any time.

Sample #3: Retention Bonus Agreement for Executives

This agreement is for executives in a company. The agreement outlines the following terms:

– The executive will receive a bonus of [dollar amount] if they remain with the company for [number of months/years].

– The bonus will be paid in [one lump sum/ installments] and will be subject to applicable taxes and other deductions.

– The executive must not give notice of their intention to leave the company during the retention period.

– The executive must be in good standing with the company at the end of the retention period to receive the bonus.

– The company reserves the right to adjust the bonus amount or requirements at any time.

In conclusion, retention bonus agreements are an effective way to incentivize employees to remain with a company for a certain period. These agreements can be tailored to suit specific situations and employee groups. It is important to have a clear understanding of the terms and conditions of the agreement before signing it.