"Sign-On Bonus Agreement Template"

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What Is a Sign-On Bonus Agreement?

A Sign-On Bonus Agreement is a legal contract that is signed between an employer and an employee (or a company and a candidate) under which an employer is legally bound to pay an employee a sign-on bonus. The agreement is generally signed after or at the same time with an Employment Contract between the same parties. The purpose of the agreement is to secure the employee's right to receive the bonus, promised by their employer.

Alternate Name:

Signing Bonus Agreement.

A sign-on bonus is a type of monetary compensation to the employee at the beginning of their employment. Usually, employers tend to offer it when they want to hire somebody who is already employed, or when they want to hire a very qualified specialist and need to make sure they will agree to their offer.

A Sign-On Bonus Agreement template can be downloaded below or you can make your own using our online form builder.

How to Make a Sign-On Bonus Agreement?

Making a Signing Bonus Agreement is an easy-going process. The document has a certain structure that an employer should follow in order to describe any important moments that could potentially come up. The agreement may contain parts such as:

Title. The agreement should start with a title. It will help to determine the nature of the agreement.
Introduction. In this part of the agreement, the employer should designate the parties who are entering the contract. They should also state their names and addresses.
Relationship Between Parties. If the agreement is being signed after the employment contract was signed, then the parties can designate the information about it here. Stating the employment contract's date and the number would be enough.
Main Terms. The employer may define the terms that will be used the most in the contract. They can give definitions to such terms as the Sign-On Bonus, the employment contract, the employer, etc.
Bonus. Parties can use this part of the document to state the bonus amount, as well as, when and how it will be paid to the employee. If there are any other requirements that the employee must fulfill to receive the bonus they should be listed here as well.
Other Terms and Conditions. If the involved parties have agreed on any other contract terms and conditions, they should state them in this part of the document.
Contact Information. Here the parties can enter their contact information for notification purposes, such as their telephone numbers, address, and emails.
Signatures. To express their consent with everything mentioned in the document and state that they are entering the agreement under their own free will, the parties should sign the agreement.

The parties can agree to include other sections in the agreement, such as severability, governing law and jurisdiction, information about representatives, and other clauses.

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Sign-On Bonus Agreement

This S ign-On Bonus Agreement (hereinafter referred to as the “Agreement”) is entered

into as of _______________ (hereinafter referred to as the “Effective Date”) by and

between ______________________, with a mailing address of ____________________

_____________________________________ (hereinafter referred to as the “Company”)

and ______________________, with a mailing address of ________________________

____________________________________ (hereinafter referred to as the “Employee”),

collectively referred to as the “Parties,” both of whom agree to be bound by this

Agreement.

1. Sign-On Bonus. T he Company shall pay the Employee a cash payment equal to

$__________________ (hereinafter referred to as the “Sign-On Bonus”).

2. Payment Dates. The Sign-On Bonus shall be paid in the following manner:

● The Company shall pay _______% of the Sign-On Bonus no later than the first

scheduled payroll date after the first _______ days of the Employment Period.

● The Company shall pay the rest of the Sign-On Bonus no later than the first

scheduled payroll date after the first anniversary of the Effective Date.

3. Termination. The Agreement will remain in effect provided that the Employee

remains employed with the Company through the applicable payment dates.

The Employee understands that the remainder of the Sign-On Bonus is forfeited if

Employee is no longer in the position to which they are hired or if their performance is

not satisfactory.

Notwithstanding the foregoing, in the event that the Employee is terminated for cause at

any time during their employment period, the Employee shall be obligated to

immediately repay to the Company any portion of the Sign-On Bonus paid to him.

4. Governing Law. T he Parties agree that this Agreement shall be governed by the laws

of ______________________.

S tate

The Parties agree to the terms and conditions set forth above as demonstrated by their

signatures as follows:

T EMPLATEROLLER.COM