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bonus structure "contract" and involuntary termination language Arizona

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  • bonus structure "contract" and involuntary termination language Arizona

    I have a valuable employee for whom we are developing a new performance based bonus structure for the remainder of the year. The terms are agreeable with one exception, there is no language covering involuntary termination. While we are certain we will not terminate him prior to the end of the year, with the money involved I can understand why the request is being made to include some clause.

    What is happening is we are significantly enhancing some new software to automate some processes that this individual helped build initially. Without him the cost to enhance the software would be significantly greater. We have outlined a bonus structure to cover specific deliverables which will pay out a specific amount at each deliverable. Then at the end of the project, when the new software is operational, there is a significant payment. The concern here is that there is no language to protect against the employee being let go prior to the software being deemed "operational" and thus being denied the significant payout yet has turned over the expert knowledge needed.

    We are structuring some protection for the employee, but I wanted to see if anyone could offer some sample language for an involuntary termination clause that is fair to both the business and the employee.

    Thanks in advance!

  • #2
    You will have to show whatever it is you have in writing to a local attorney to see whether or not it reaches the level of a contract.
    Last edited by cbg; 05-05-2008, 04:20 AM.


    • #3
      Jack, for future posts, advertising within the confines of your post is not permitted.
      The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.


      • #4
        You will need to run it by your legal dept. or talk to a local employment or contract attorney.
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