If you are considering signing a retention contract with your employer, it is important to confer with an experienced attorney to ensure that you are fully protected. Below are examples of common provisions that do not benefit employees, but are often found in retention agreements:
Termination “For Cause” Provision
Employers often do not define what constitutes termination “for cause,” which gives the employer significant power. Your attorney can help exclude broad language such as “failure to satisfy performance expectations.” This type of catchall language allows the employer to have control over your employment as well as your eligibility to receive the bonus payment.
Payment of Bonus is Subject to Employer’s Discretion
Employers commonly offer a lump sum bonus payment to the employee, but they outline certain requirements that must be met before the employee is eligible to receive the payment. Examples of requirements an employer typically uses are that the employee must work through a specified date or accomplish certain goals in order to receive the bonus payment. Your attorney can help ensure that these requirements are fair and as objective as possible.
An employee should not agree to be “locked in” to work until a certain date in order to receive the retention payment. This can cause problems with your ability to search for and start a new job. It is more reasonable to negotiate for a prorated amount to be paid if you leave before the specified date, so at least you receive something.
Before you sign a retention contract, it is important to seek legal advice. The attorneys at Mailly Law can review the agreement and eliminate the provisions that make you vulnerable. Negotiating and drafting retention agreements is our primary area of practice. Let us fight for your rights and help obtain a contract is the most beneficial to you as possible. Contact our office today.