Document background
The Employee Bonus Agreement is a crucial document for organizations operating in Ireland that wish to implement a structured performance-based compensation system. This agreement is typically used when companies want to formalize their bonus arrangements, whether for annual performance bonuses, sales commissions, or special incentive schemes. The document must comply with Irish employment law, including the Payment of Wages Act 1991 and relevant tax legislation. It should be implemented when establishing new bonus schemes, modifying existing arrangements, or onboarding new employees into bonus-eligible positions. The agreement provides clarity on bonus calculations, payment terms, eligibility criteria, and the relationship between performance and reward, while protecting both employer and employee interests through clear documentation of all terms and conditions.
