Document background
The Retention Bonus And Severance Agreement is a strategic employment document used in Canadian business contexts to secure the continued employment of key personnel during critical periods such as corporate restructuring, mergers and acquisitions, or other significant organizational changes. This agreement serves dual purposes: incentivizing valued employees to remain with the organization through specific periods while also providing clarity on severance terms. It typically includes detailed provisions for bonus calculation, payment schedules, performance expectations, and comprehensive severance arrangements. The document must comply with both federal and provincial employment standards, including minimum notice periods and severance requirements, while often providing enhanced benefits beyond statutory minimums. It's particularly crucial for organizations seeking to maintain stability and retain essential talent during periods of transition or uncertainty.
