Bonus Clause (Performance Based)

Summary

This is a sample clause that can be used in an employment agreement outlining the employee's right to a bonus, including whether the bonus is discretionary or not and whether it is based on the performance of the employee or the performance of the company generally. It includes practical guidance, explanations, drafting notes and tips for preparing this clause. An employment agreement is a contract that sets out the terms and conditions, as well as the rights and obligations, of the employment relationship between an employer and its employee. The contract may be written or oral and may contain express or implied terms. It is advisable to have an employment contract in written form to avoid confusion about the terms and conditions of employment and to reduce liability in the event of the termination of the employee. Employment contracts generally cover the following terms of employment: commencement date and term of employment, the duties and responsibilities of both the employer and ...