A Retention Bonus Agreement is commonly used when organizations need to ensure key employees remain with the company during critical periods such as mergers, acquisitions, major projects, or organizational restructuring. This document, governed by Singapore law, establishes the terms under which an employee will receive additional compensation for remaining employed for a specified period. The agreement typically includes details about the bonus amount, payment timing, performance requirements, and consequences of early departure. It must comply with Singapore's Employment Act, CPF regulations, and tax requirements while protecting both employer and employee interests.
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Key Requirements PROMPT example:
Retention Bonus Agreement
"Need a Retention Bonus Agreement for our Singapore-based Senior Developer, offering SGD 50,000 bonus payable in two installments if they stay until March 2025, with clawback provisions if they leave early."
1. Parties: Identifies the employer and employee entering into the agreement
2. Background: Explains the context and purpose of the retention bonus
3. Definitions: Defines key terms used throughout the agreement
4. Retention Period: Specifies the duration of the retention period
5. Bonus Amount and Payment Terms: Details the bonus amount and payment schedule
6. Conditions for Payment: Outlines conditions that must be met to receive the bonus
7. Termination Provisions: Describes what happens if employment ends before retention period
1. Performance Criteria: Additional performance requirements, used when bonus is partly performance-based
2. Clawback Provisions: Terms for recovering paid bonus, used when risk of early departure exists
3. Non-Compete Clauses: Restrictions on future employment, used for senior positions
4. Tax Provisions: Specific tax treatment agreements, used for large bonuses or international employees
1. Payment Schedule: Detailed breakdown of payment dates and amounts if paid in installments
2. Performance Metrics: Detailed performance criteria if applicable
3. Calculation Formula: Formula for calculating bonus if variable components exist
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