¶¶Òõ¶ÌÊÓƵ

All Countries
Employment
Employee Retention Bonus Agreement

Employee Retention Bonus Agreement Template for India

Create a bespoke document in minutes,  or upload and review your own.

4.6 / 5
4.8 / 5

Let's create your Employee Retention Bonus Agreement

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Get your first 2 documents free

Your data doesn't train Genie's AI

You keep IP ownership of your information

Key Requirements PROMPT example:

Employee Retention Bonus Agreement

"Need an Employee Retention Bonus Agreement for our senior software development team in Bangalore, offering a 25% bonus of annual salary payable in two installments during 2025, with specific performance metrics related to our cloud migration project."

Celebrated by
Collaborations with
Investors
Document background
The Employee Retention Bonus Agreement is a strategic tool used by organizations in India to retain valuable employees during critical periods such as mergers, acquisitions, important projects, or competitive market conditions. This document, governed by Indian contract and labor laws, establishes a formal commitment between the employer and employee, offering a financial incentive in exchange for continued employment for a specified period. The agreement is particularly relevant in high-attrition industries or during organizational transitions, providing clarity on bonus amounts, payment schedules, conditions for payment, and tax implications. It must comply with various Indian regulations including the Payment of Bonus Act, 1965, Income Tax Act, 1961, and relevant state-specific employment laws.
Suggested Sections

1. Parties: Identifies the employer and employee, including their legal names, addresses, and any relevant registration numbers

2. Background: Sets out the context of the agreement, including the purpose of retention bonus and the employee's current role

3. Definitions: Defines key terms used throughout the agreement including 'Retention Period', 'Retention Bonus', 'Cause', etc.

4. Retention Period: Specifies the duration for which the employee must remain employed to receive the bonus

5. Bonus Amount: States the total retention bonus amount and any applicable conditions

6. Payment Terms: Details the payment schedule, including whether paid as lump sum or installments

7. Conditions for Payment: Outlines the requirements that must be met to receive the bonus

8. Termination Provisions: Describes what happens to the bonus if employment terminates before the retention period ends

9. Confidentiality: Requires the employee to keep the terms of the bonus agreement confidential

10. Tax Implications: Clarifies the tax treatment of the bonus payment and responsibilities for tax payment

11. Governing Law: Specifies that Indian law governs the agreement

12. Entire Agreement: Confirms this document represents the complete agreement regarding the retention bonus

Optional Sections

1. Clawback Provisions: Optional section used when the employer wants the right to recoup the bonus under certain circumstances

2. Performance Criteria: Include when the bonus is tied not just to retention but also to performance metrics

3. Non-Competition: Added when the employer wants to restrict the employee's ability to work for competitors after receiving the bonus

4. Dispute Resolution: Optional section specifying arbitration or other alternative dispute resolution methods

5. Force Majeure: Include when wanting to address circumstances beyond parties' control that might affect the agreement

6. Assignment: Added when there's a need to address potential company restructuring or acquisition scenarios

Suggested Schedules

1. Schedule A - Bonus Calculation: Details the formula or method for calculating the retention bonus amount

2. Schedule B - Payment Schedule: If paid in installments, provides detailed payment dates and amounts

3. Schedule C - Performance Metrics: If applicable, details any performance criteria linked to the bonus payment

4. Appendix 1 - Employee Details: Contains specific employee information including current role, salary, and employment history

5. Appendix 2 - Company Policies: References relevant company policies that interact with the bonus agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions






























Clauses


























Relevant Industries

Information Technology

Financial Services

Manufacturing

Healthcare

Professional Services

Telecommunications

Retail

E-commerce

Pharmaceuticals

Construction

Energy

Education

Media and Entertainment

Automotive

Real Estate

Relevant Teams

Human Resources

Legal

Finance

Information Technology

Operations

Sales

Research and Development

Product Development

Marketing

Customer Service

Engineering

Quality Assurance

Business Development

Strategy

Administration

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Technology Officer

Director

Senior Manager

Project Manager

Technical Lead

Senior Software Engineer

Financial Controller

HR Manager

Operations Manager

Department Head

Regional Manager

Key Account Manager

Research Scientist

Principal Architect

Senior Consultant

Product Manager

Sales Director

Vice President

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

Find the exact document you need

Simple Compensation Agreement

An Indian law-governed agreement that establishes comprehensive compensation terms between employer and employee, including salary, benefits, and payment conditions.

find out more

Transaction Bonus Agreement

An Indian law-governed agreement establishing terms for a special bonus payment tied to a corporate transaction, outlining payment conditions and obligations for both employer and employee.

find out more

Bonus Agreement Employee

An Indian law-governed agreement establishing bonus payment terms and conditions between employer and employee, compliant with the Payment of Bonus Act.

find out more

Consulting Agreement With Stock Options

An Indian law-governed agreement establishing a consulting relationship with stock option compensation, combining service terms with equity incentives.

find out more

Stock Compensation Agreement

An Indian law-governed agreement establishing terms for employee equity compensation, including grant details, vesting conditions, and regulatory compliance requirements.

find out more

Employee Stock Grant Agreement

An Indian law-governed agreement formalizing the grant of company shares to employees, detailing terms, conditions, and regulatory compliance requirements.

find out more

Employee Bonus Incentive Agreement

An Indian law-governed agreement establishing terms for employee performance-based bonus compensation, including eligibility, calculations, and payment conditions.

find out more

Incentive Bonus Agreement

An agreement governing performance-based bonus payments between employer and employee under Indian law, outlining calculation methods and eligibility criteria.

find out more

Referral Compensation Agreement

An Indian law-governed agreement establishing terms for business referrals and associated compensation between parties, including referral processes and payment structures.

find out more

Independent Contractor Compensation Agreement

An Indian law-governed agreement establishing the terms and conditions of engagement between a company and an independent contractor, including compensation and service terms.

find out more

Transition Bonus Agreement

An Indian law-governed agreement establishing terms for a retention bonus during organizational transition periods, including payment terms and conditions.

find out more

Severance Payment Agreement

An Indian law-governed agreement detailing severance payment terms and conditions between employer and departing employee, including compensation, benefits, and mutual obligations.

find out more

Equity Award Agreement

An Indian law-governed agreement detailing the terms of equity-based compensation granted by a company to an employee, including grant, vesting, and exercise provisions.

find out more

Severance Pay Non Compete Agreement

An Indian law-governed agreement combining severance payment terms with non-compete obligations for departing employees.

find out more

Salary Deferral Agreement

An Indian law-governed agreement establishing terms for temporary salary deferral, including payment schedules and statutory compliance requirements.

find out more

Compensation For Non Compete Agreement

An Indian law-governed agreement providing compensation in exchange for non-compete commitments, structured to ensure enforceability under Indian contract law.

find out more

Employee Retention Bonus Agreement

An Indian law-compliant agreement establishing terms for employee retention bonus payments, including amount, conditions, and payment schedule.

find out more

Hiring Bonus Agreement

An Indian law-compliant agreement specifying terms and conditions for payment of a hiring bonus to a new employee, including payment schedule and repayment terms.

find out more

Deferred Salary Agreement

An Indian law-governed agreement establishing terms for salary deferral arrangements between employer and employee, ensuring compliance with local labor and tax regulations.

find out more

Equity Grant Agreement

An Indian law-governed agreement detailing the terms and conditions for granting company equity shares to recipients, including vesting schedules and regulatory compliance requirements.

find out more

Download our whitepaper on the future of AI in Legal

By providing your email address you are consenting to our Privacy Notice.
Thank you for downloading our whitepaper. This should arrive in your inbox shortly. In the meantime, why not jump straight to a section that interests you here: /our-research
Oops! Something went wrong while submitting the form.

³Ò±ð²Ô¾±±ð’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; ³Ò±ð²Ô¾±±ð’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

Our bank-grade security infrastructure undergoes regular external audits

We are ISO27001 certified, so your data is secure

Organizational security

You retain IP ownership of your documents

You have full control over your data and who gets to see it

Innovation in privacy:

Genie partnered with the Computational Privacy Department at Imperial College London

Together, we ran a £1 million research project on privacy and anonymity in legal contracts

Want to know more?

Visit our for more details and real-time security updates.

Read our Privacy Policy.