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HOW IT WORKS
How it works
Great employees are valuable. If you want to encourage an employee to stay at your company, you can use an Employee Retention Agreement. It outlines the agreement between the employee and the company that the employee will remain at the company for a set period of time and be provided a guaranteed retention bonus (even if the company may be facing a buyout or change in management, or ownership, which could ultimately result in the employee's loss of a job).
An Employee Retention Agreement is designed to help retain valuable employees during periods of uncertainty and transition. If your company is facing a buyout, merger, or other management changes, you can use an Employee Retention Agreement to entice valuable employees to remain at the company, so that you can keep running your business without interruption.
Interested in learning more about essential employment forms? Check out our HR Guide for additional information.
Other names for this document: Employee Retention Plan, Employee Loyalty Agreement, Employment Retention Agreement
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