Retention Bonus Agreement Template for Singapore

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.

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