You must specify in your contract how terminations work. We do not want to give a complete sample, because it really depends on how you structure your agreement. As always, make sure your legal team reads this directive to ensure that you comply with all local, state and federal laws. Then you want to go straight into what is in this letter: the offer of a conservation bonus agreement. We recommend getting straight to the point: consider a retention bonus agreement as the opposite of a severance agreement. While a compensation agreement involves payment if the employee agrees that they have been terminated fairly, the retention bonus contract offers them a payment to remain fixed. As you can see, it goes straight to the point. You need to make sure that you can set up your retention bonus contract so that the person knows exactly what you`re talking about above. Good people have value.
If you want to encourage an employee to stay in your business, you can use a loyalty agreement. It describes the agreement between the employee and the company that the employee will remain in the business for a certain period of time and will receive a guaranteed retention bonus (even if the business may face a purchase or a change of direction or ownership, which could ultimately result in the loss of a job). And, as we said above, the first step is to create a great conservation bonus deal trying to stay in the file so you can use it if you need it. If we do not, let`s talk directly about how you can make one of these agreements to make sure it does everything you need. The next part of the agreement indicates how the person`s role in the newly created organization will change, how long the agreement will last and how much they will be paid if they stay long enough. Once you have made this part crystal clear, you must also add other legal parts to your agreement to ensure that they stop. Ultimately, your retention bonus contract should benefit both you and the employees you want to keep. By offering a bonus, you can encourage your best talent to maintain themselves and help you achieve your business goals after a merger or buyout. At the same time, you reward the commitment of your employees.
All of these things need to be mentioned in the conservation bonus letter so that your employee fully understands what you are offering them. The last thing you want is to either confuse your employee and is not willing to accept the offer, or let countless employees arise with simple questions that you may have answered in an email/agreement. This agreement must be solid and easy to understand. So be sure to talk to your legal team before you offer it, and even tell your employee to check with his or her lawyer. The last thing you want to have right after a big business event like a merger or acquisition is to end up in court. SHRM stipulates that deduction premiums are generally refunded to the organization when a person ceases to be under the agreement. One way or another, you need to fully understand the financial side of the bonus before offering the incentive to your employees. However, we advise you to reach an agreement during the early stages of the merger or acquisition, so that you can fill out areas later, so that you have registered a document and are ready to send it.