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Bonus Letter To Employee
1. Employee Information: Full name, employee ID, position, and department of the employee receiving the bonus
2. Effective Date: The date from which the bonus arrangement takes effect
3. Bonus Type and Amount: Clear specification of the bonus type (e.g., performance, retention, annual) and the amount or calculation method
4. Performance Criteria: Specific, measurable criteria that must be met to earn the bonus
5. Payment Terms: When and how the bonus will be paid, including any installment arrangements
6. Tax Treatment: Statement about tax withholding and other statutory deductions
7. Employment Conditions: Requirements regarding continued employment for bonus eligibility
8. Company Signature Block: Signature section for authorized company representative
1. Clawback Provisions: Include when the bonus may need to be repaid under certain circumstances
2. Pro-rata Calculations: Include for partial year or employment period calculations
3. Confidentiality Clause: Include when bonus information is considered confidential
4. Non-recurring Nature: Include for one-time bonuses to clarify no future entitlement
5. Holiday Pay Impact: Include when the bonus affects holiday pay calculations
6. Group Performance Metrics: Include when bonus depends on team or company performance
1. Bonus Calculation Method: Detailed explanation of how the bonus amount is calculated, including any formulas or metrics
2. Performance Targets: Specific breakdown of KPIs or targets that determine the bonus amount
3. Payment Schedule: If paid in installments, detailed timeline of payments
4. Historical Performance Data: Reference data used for bonus calculations, if applicable
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