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The Retention Letter To Employee is a strategic human resources document used in the German market when companies need to ensure the continued employment of key personnel during critical periods such as mergers, acquisitions, major projects, or significant organizational changes. It must comply with German labor law requirements, including the Bürgerliches Gesetzbuch (BGB) and relevant employment regulations. The document typically includes specific retention periods, bonus structures, payment terms, and conditions for receiving the retention benefits. It serves as a formal modification to the existing employment relationship, requiring careful consideration of works council rights (if applicable) and ensuring all terms align with German employment protection standards. The letter is particularly crucial in competitive industries where retaining skilled employees is essential for business continuity and success.

1. Letter Header: Company letterhead, date, and employee's contact information

2. Subject Line: Clear indication that this is a retention letter

3. Opening Statement: Acknowledgment of employee's value to the company and expression of desire to retain their services

4. Current Role Reference: Brief description of employee's current position and contributions

5. Retention Period: Specific timeframe for which the retention arrangement applies

6. Retention Compensation: Details of the retention bonus or special compensation being offered

7. Payment Terms: Timing and conditions of retention bonus payments

8. Continued Employment Conditions: Any specific requirements or expectations during the retention period

9. Existing Terms Confirmation: Statement confirming that other employment terms remain unchanged

10. Confidentiality Statement: Reminder about keeping the terms of the retention letter confidential

11. Acceptance Process: Instructions for accepting the retention offer and deadline for response

12. Closing: Professional closing with space for signatures