Home Blog Retention Agreement Review: Key Terms, Tips, Legal Help

Retention Agreement Review: Key Terms, Tips, Legal Help

Jump to Section

Quick Facts — Retention Agreement Lawyers

What is a Retention Agreement Review?

A retention agreement is a contract between an employer and employee. It offers the employee compensation for staying longer at the company. It’s common to use a retention agreement during a company’s transitional period, such as if they’re merging with another business.

If you’ve had a retention agreement drafted, you’ll want to review it carefully to ensure it’s clear and reasonable to both parties.

Read the rest of this article to explore what key terms you should review in a retention agreement, tips for reviewing it, and why you should hire a lawyer for help with the process.

What Key Terms Should Be in a Retention Agreement?

A retention agreement usually contains the following terms for clarity between parties.

  • Period. The retention period, such as six or 12 months, must be clearly defined so that there’s no confusion about when the retention period comes to an end.
  • Payout. The bonus provided to the employee might be paid in one lump sum, installments, or at the end of the retention period. This must be clearly stated.
  • Clawback provisions. There might be times when the bonus needs to be repaid, such as if the employee terminates the agreement before its end date.
  • Duties. The agreement must specify the employee’s required job role and duties. If these are going to be changed during the retention period, these changes must be listed.
  • Taxes. Since the bonus can be considered supplemental income, there should be clarity about how it will be subject to taxes.
  • Dispute resolution. The agreement should explain what happens if parties disagree. There should be a dispute-resolution method included, such as arbitration or mediation, to resolve conflicts quickly.

What are Tips for Reviewing a Retention Agreement?

When reviewing your retention agreement prior to signing it, you should look for the above-mentioned key terms and then consider other important tips to protect your interests.

Consider the Offer

As an employee, you should review the offer mentioned in the retention agreement. This bonus amount must be strong enough to persuade you to remain with the company. Compare it to offers you’ve received in other job roles to assess if it’s worth accepting.

Look for Transparency

Both parties should review the retention agreement to ensure that all details are specific and clear. Transparency is key to maintaining a strong working relationship and avoiding disputes.

Flag any vague words or phrases, such as “reasonable” or “from time to time,” as these leave the contract open to misinterpretation.

Read the Entire Agreement

You mustn’t skim over any sections of the retention agreement. Check every sentence for clarity. If you notice anything unclear or challenging to understand, don’t ignore it as it could put you at risk.

For example, if there is a retainer fee that’s non-refundable, this could affect your right to regain the money if the agreement is terminated suddenly.

Consider Termination

A big concern that your retention agreement should tackle is what happens if the employee leaves the company before the term ends. Make sure that termination clauses are fair, such as by not requiring very long notice periods or stating that there are hefty penalties for the employee who resigns.

Think About Non-Competes

If there is a non-competition agreement already in place, this could affect the employee’s future employment. When signing a retention agreement, a non-compete should be cancelled so that the employee won’t struggle to find employment after the contract ends.

If you can’t remove a non-compete, you and the other party might be able to negotiate it, such as by reducing its geographic scope or restricted period.

Do You Need a Lawyer for a Retention Agreement Review?

While you don’t always need to hire a qualified lawyer to review your retention agreement, it’s advisable, especially if you’re dealing with significant compensation or the retention agreement is unclear.

A lawyer will help you in the following ways:

  • Spotting hidden risks. A lawyer will use their legal expertise to notice clauses that can carry significant consequences, such as hidden clawbacks.
  • Explaining complex terms. This will help you to understand everything in the agreement so you feel confident to accept its terms.
  • Checking payment is fair and reasonable. The payment structure must match the benefits the employee is going to receive.
  • Flagging unfair or unbalanced terms. An example involves one-sided termination clauses that put the employee at a disadvantage.
  • Negotiating terms. If the agreement has clauses that should be changed, a lawyer can negotiate with the other party on your behalf.
  • Preventing future disputes. Litigation can be expensive. A lawyer helps you to avoid conflict by revising terms so that they can’t be misunderstood.

Where to Find a Lawyer for a Retention Agreement Review

If you need to hire a lawyer for a retention agreement review, you can easily find a qualified lawyer on an online legal platform like ContractsCounsel.

ContractsCounsel is an online legal marketplace that connects you to a network of vetted lawyers with experience in contract drafting and review.

It’s simple to ask a lawyer to review your retention agreement. Follow these easy steps online to connect with a reliable lawyer:

1. Go to the ContractsCounsel marketplace, where it’s free to post your project. Include a few details to help you match with the most suitable lawyer.

2. Wait for bids. You’ll receive multiple bids from lawyers directly on the platform who are experienced to assist you.

3. Once you receive the lawyer bids, review the lawyers’ profiles. There’s lots of info on the platform to help you choose the best lawyer, such as their location, client ratings, years of experience, and field of expertise.

4. Connect with a lawyer you think is best suited to your requirements and hire them to review your retention agreement.


ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.


Meet some of our Lawyers

Ted A. on ContractsCounsel
View Ted
4.9 (23)
Member Since:
August 10, 2023

Ted A.

Managing Attorney
Free Consultation
New York, New York
27 Yrs Experience
Licensed in NY
Yale Law School

Equity Investments, Agreements & Transactions | Securities & Lending | Corporate Governance | Complex Commercial Contracts | Outside General Counsel & Compliance

Recent  ContractsCounsel Client  Review:
5.0

"Ted was extremely responsive, knowledgeable, easy to work with and was able help me the same day. I would confidently recommend him in the future."

Michael M. on ContractsCounsel
View Michael
4.9 (333)
Member Since:
September 10, 2022

Michael M.

Principal
Free Consultation
Los Angeles, California
39 Yrs Experience
Licensed in CA
NYU

www.linkedin/in/michaelbmiller I am an experienced contracts professional having practiced nearly 3 decades in the areas of corporate, mergers and acquisitions, technology, start-up, intellectual property, real estate, employment law as well as informal dispute resolution. I enjoy providing a cost effective, high quality, timely solution with patience and empathy regarding client needs. I graduated from NYU Law School and attended Rutgers College and the London School of Economics as an undergraduate. I have worked at top Wall Street firms, top regional firms and have long term experience in my own practice. I would welcome the opportunity to be of service to you as a trusted fiduciary. In 2022 and 2023, I was the top ranked attorney on the Contract Counsel site based upon number of clients, quality of work and number of 5 Star reviews.

Recent  ContractsCounsel Client  Review:
5.0

"Michael's expertise and judgment impressed me. I brought him in for contract advisory work, and he quickly asked the questions I hadn't considered, identified the risks that mattered, and set aside the ones I had wrongly prioritized. He changed how I understood the contract. He is an excellent advisor - highly recommended."

Darryl S. on ContractsCounsel
View Darryl
5.0 (142)
Member Since:
November 9, 2023

Darryl S.

Founder and Counselor-at-Law
Texas
33 Yrs Experience
Licensed in TX
The University of Texas School of Law Austin

I offer flat/fixed fees rather than hourly work to help lower your legal costs and align our interests. I specialize in contract law and focus on making sure your contract is clear, protects your interests and meets your needs. You can expect fast, straightforward communication from me, making sure you understand every step. With my experience, you'll get a detailed review of your contract at a fair, fixed price, without any surprises. I have over 30 years of business and legal experience that I bring to your project. I graduated from The University of Texas School of Law with High Honors in 1993 and practiced at Texas' largest law firm. I have founded companies and so understand how to be helpful as both a lawyer and business owner.

Recent  ContractsCounsel Client  Review:
5.0

"Excellent attorney! D was thorough, communicative, very helpful, and knowledgable about the relevant SaaS topics. Really appreciate his ethical and practical approach to the law--specifically lets you know if certain elements are unnecessary extras charges. I look forward to working with him and his team again in the future!"

Ryenne S. on ContractsCounsel
View Ryenne
4.9 (610)
Member Since:
October 11, 2022

Ryenne S.

Principal Attorney
Free Consultation
Chicago, Illinois
16 Yrs Experience
Licensed in IL
DePaul University College of Law

My name is Ryenne Shaw and I help business owners build businesses that operate as assets instead of liabilities, increase in value over time and build wealth. My areas of expertise include corporate formation and business structure, contract law, employment/labor law, business risk and compliance and intellectual property. I also serve as outside general counsel to several businesses across various industries nationally. I spent most of my early legal career assisting C.E.O.s, General Counsel, and in-house legal counsel of both large and smaller corporations in minimizing liability, protecting business assets and maximizing profits. While working with many of these entities, I realized that smaller entities are often underserved. I saw that smaller business owners weren’t receiving the same level of legal support larger corporations relied upon to grow and sustain. I knew this was a major contributor to the ceiling that most small businesses hit before they’ve even scratched the surface of their potential. And I knew at that moment that all of this lack of knowledge and support was creating a huge wealth gap. After over ten years of legal experience, I started my law firm to provide the legal support small to mid-sized business owners and entrepreneurs need to grow and protect their brands, businesses, and assets. I have a passion for helping small to mid-sized businesses and startups grow into wealth-building assets by leveraging the same legal strategies large corporations have used for years to create real wealth. I enjoy connecting with my clients, learning about their visions and identifying ways to protect and maximize the reach, value and impact of their businesses. I am a strong legal writer with extensive litigation experience, including both federal and state (and administratively), which brings another element to every contract I prepare and the overall counsel and value I provide. Some of my recent projects include: - Negotiating & Drafting Commercial Lease Agreements - Drafting Trademark Licensing Agreements - Drafting Ambassador and Influencer Agreements - Drafting Collaboration Agreements - Drafting Service Agreements for service-providers, coaches and consultants - Drafting Master Service Agreements and SOWs - Drafting Terms of Service and Privacy Policies - Preparing policies and procedures for businesses in highly regulated industries - Drafting Employee Handbooks, Standard Operations and Procedures (SOPs) manuals, employment agreements - Creating Employer-employee infrastructure to ensure business compliance with employment and labor laws - Drafting Independent Contractor Agreements and Non-Disclosure/Non-Competition/Non-Solicitation Agreements - Conducting Federal Trademark Searches and filing trademark applications - Preparing Trademark Opinion Letters after conducting appropriate legal research - Drafting Letters of Opinion for Small Business Loans - Drafting and Responding to Cease and Desist Letters I service clients throughout the United States across a broad range of industries.

Recent  ContractsCounsel Client  Review:
5.0

"Ryenne is great. Very quick to respond, she set up the consultation immediately for the next business day and we were done in 1/2 hour! Definitely recommend!"

Odini G. on ContractsCounsel
View Odini
5.0 (8)
Member Since:
August 7, 2024

Odini G.

Attorney
Free Consultation
Aspen
19 Yrs Experience
Licensed in CO, GA, NY
Emory University School of Law

I am an accomplished attorney with more than 19 years of experience and extensive expertise in business negotiations, commercial contracts, and technology transactions. With a proven track record of providing strategic legal advice and delivering exceptional results, I have successfully assisted numerous clients in drafting, reviewing, and negotiating various business arrangements. My experience encompasses a wide range of areas, including intellectual property, data privacy and security, SaaS agreements, and software licenses. I co-founded a reputable general corporate law firm with three offices in Aspen, Atlanta, and New York. As a partner and attorney, I represented diverse clients, including start-ups, public corporations, investors, financial institutions, educational institutions, and non-profit entities. With a focus on delivering comprehensive legal solutions, I provided general counsel, expert dispute resolution, efficient litigation management, and skillful contract drafting and negotiations for businesses across industries.

Recent  ContractsCounsel Client  Review:
5.0

"Supremely responsive and works surprisingly quickly. Strongly recommend!"

Janice K. on ContractsCounsel
View Janice
5.0 (19)
Member Since:
August 30, 2023

Janice K.

Counselor
Free Consultation
Washington
24 Yrs Experience
Licensed in CA, WA
Empire College School of Law, Santa Rosa, CA

Twenty-plus years experience in family law, employment law, public agency law, federal, state and local contracts drafting and review, appellate practice.

Recent  ContractsCounsel Client  Review:
4.7

"Janice was friendly, kind and efficient. She always held my best interest in mind and was very respectful and helpful at all times. Thank you so much Janice!"

Tetyana J. on ContractsCounsel
View Tetyana
Member Since:
September 4, 2023

Tetyana J.

Attorney/Owner
Free Consultation
Houston
4 Yrs Experience
Licensed in TX
University of Houston

I am a highly accomplished and dedicated immigration attorney, renowned for providing top-tier immigration legal services that consistently exceed expectations. I am known for my expertise in offering exceptional representation across a broad spectrum of immigration cases, including EB-2 National Interest Waivers (NIW), O visas, EB-1A, family-based immigration, TPS, Adjustment of status, asylum petitions, and skillful advocacy in Immigration Court proceedings. My clients rely on my unwavering commitment to their immigration needs, trusting in my in-depth knowledge of the intricate legal processes and my steadfast determination to secure favorable outcomes. My reputation as a leading authority in the field is a testament to my unwavering commitment to delivering unparalleled, high-quality immigration services. In addition, I am fluent in Ukrainian and Russian.

Find the best lawyer for your project

Browse Lawyers Now

See Real Retention Agreement Projects

California AMC Review
  • California
  • 7 lawyer bids
  • $350 - $750
View Details
Delaware Review and improvement of a draft retainer agreement for professional services Review
  • Delaware
  • 8 lawyer bids
  • $249 - $999
View Details
Wisconsin Review Transition Bonus Agreement Review
  • Wisconsin
  • 9 lawyer bids
  • $325 - $3,000
View Details

See all Retention Agreement projects

Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.

View Trustpilot Review

Need help with a Retention Agreement?

Post Your Project

Get Free Bids to Compare

Hire Your Lawyer

CONTRACT LAWYERS BY TOP CITIES
See All Business Lawyers
RETENTION AGREEMENT REVIEW LAWYERS BY CITY
See All Retention Agreement Review Lawyers

Contracts Counsel was incredibly helpful and easy to use. I submitted a project for a lawyer's help within a day I had received over 6 proposals from qualified lawyers. I submitted a bid that works best for my business and we went forward with the project.

View Trustpilot Review

I never knew how difficult it was to obtain representation or a lawyer, and ContractsCounsel was EXACTLY the type of service I was hoping for when I was in a pinch. Working with their service was efficient, effective and made me feel in control. Thank you so much and should I ever need attorney services down the road, I'll certainly be a repeat customer.

View Trustpilot Review

I got 5 bids within 24h of posting my project. I choose the person who provided the most detailed and relevant intro letter, highlighting their experience relevant to my project. I am very satisfied with the outcome and quality of the two agreements that were produced, they actually far exceed my expectations.

View Trustpilot Review

How It Works

Post Your Project

Get Free Bids to Compare

Hire Your Lawyer

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call

Find lawyers and attorneys by city