FREE 10+ Employee Compensation Agreement Samples in MS Word | Google Docs | Apple Pages | PDF

Working in a company would be mean receiving different types of compensation and benefits, the longer you are in the company and depending on your job position and rank, the greater the benefits you are likely to receive. This is one of the ‘perks’ a company has to offer to its new employees. And is one way of attracting job applicants to apply for a position in the company. Over time new employees are given the opportunity to get a raise, or perhaps are offered a higher or different job position in the company. Once this takes effect, an employee compensation agreement is then prepared by the employer to record the changes in the compensation and benefits of an employee. To know more about this, let us discuss this further below. And if you need help preparing a compensation agreement for your employee, check out our free employee compensation agreement samples that are available for download below.

10+ Employee Compensation Agreement Samples

1. Employee Compensation Agreement Template

2. Employee Compensation Agreement

3. Employee Executive Compensation Agreement

4. Non-Employee Compensation Independent Agreement

5. Employee Office Compensation Agreement

6. Employee Death Compensation Agreement

7. Employee Deferred Compensation Agreement

8. Employee Voluntary Compensation Agreement

9. Sample Employee Compensation Agreement

10. Employee Workers Compensation Agreement

11. Employee Compensation Reduction Agreement

What Is an Employee Compensation Agreement?

As a company grows, it is also important that employees also need to develop and advance in their careers. This is a sign that the company is heading in the right direction and are able to attain the goals for the year. Once an employee has been awarded by the company for a salary increase, or perhaps a new job promotion would mean changes on the employee’s compensation. Changes such as these must be properly documented through an employee compensation agreement. This document is used to write down negotiated changes in wage or earnings potential for an employee. Both parties could use a compensation agreement to document the change.

How To Create an Employee Compensation Agreement?

When we speak about an employee’s compensation these commonly are:

• Cash compensation consisting of wages or salaries
• Health and Life Insurance
• Paid Vacation and Sick Leaves
• Retirement Plan

An employee compensation agreement acts as a supplemental form to an employment contract, in that it does not replace it, but rather amends or changes the details regarding employee compensation to the new terms. It is important to note all these changes and ensure that these are properly monitored and documented in case of sudden disputes and misunderstandings that could arise in the future. To help you create an employee compensation agreement here are the following details that could be included in the document.

1. Introduction

Information about the parties involved which is the employer and employee.

2. Background Information

In this section, it should be explained what this compensation agreement is connected with or list any document that defines the relationship between the parties involved. For example, an employment contract.

3. Compensation Details

It should be properly explained in the contract the details about how the employee will be compensated for their work. For example, his or her hourly rate, yearly salary, commissions, allowances, and will there be any deductions, if it’s taxable, etc. Included also is the payment of wages which is how many times a month does this occur and what particular dates. The more thorough the details are the fewer the questions will be from the employee.

4. Other Benefits

Other common benefits that may be included in the agreement are the leave credits, company-paid insurance, company-issued equipment such as a laptop, mobile phone, or vehicle.

5. Ammendemnts and Termination

Terms on any amendments should be included in the documents as well as a termination clause which must be agreed upon by both parties.

6. Signatures

Parties involved must affix their signature as a sign of agreement of the terms written in the contract.

FAQs

It should be part of every company’s policy to record any changes in an employee’s compensation and benefits, should he or she be given a raise or has a change in work status. Make sure to record all these in an employment compensation agreement. To make it easier to prepare don’t forget to download our free templates above.