Document background
A Transaction Bonus Agreement is essential when companies in the UAE undertake significant corporate transactions such as mergers, acquisitions, public offerings, or major restructurings. This document serves to retain key employees during critical periods and incentivize them to ensure successful transaction completion. The agreement must comply with UAE Federal Decree-Law No. 33 of 2021 (UAE Labor Law) and related regulations, while addressing specific bonus calculations, payment conditions, and employee obligations. It is particularly important in scenarios where employee retention is crucial for transaction success, and typically includes detailed provisions about confidentiality, payment timing, and performance requirements. The agreement can be customized based on whether the company operates in mainland UAE or in free zones, with appropriate considerations for local regulations and corporate governance requirements.
