The Employee Bonus Agreement is a crucial document used in Danish employment relationships to formalize the terms and conditions under which an employee may earn additional compensation based on performance, company results, or other specified criteria. This agreement type is commonly implemented when companies wish to establish clear, measurable incentive structures for their employees, ensuring alignment with business objectives while maintaining compliance with Danish employment law. The document includes detailed provisions on bonus calculations, performance metrics, payment terms, and tax implications, making it essential for both employers and employees to understand their rights and obligations. It's particularly relevant in the context of Danish business culture, which emphasizes transparency and fair compensation practices, and must comply with specific requirements under Danish employment legislation regarding bonus schemes and variable remuneration.

1. Parties: Identification of the employer company and the employee, including their full legal names and addresses

2. Background: Brief context of the agreement, including reference to the main employment agreement and purpose of the bonus scheme

3. Definitions: Key terms used throughout the agreement, including 'Bonus Period', 'Performance Targets', 'Base Salary', etc.

4. Bonus Structure: Overview of the bonus scheme, including types of bonuses (performance, retention, etc.) and general framework

5. Eligibility Criteria: Conditions that must be met to qualify for the bonus, including minimum employment duration and performance requirements

6. Performance Metrics: Detailed description of the KPIs or targets that will be used to determine bonus payments

7. Calculation Method: Formula and methodology for calculating the bonus amount, including any pro-rata calculations

8. Payment Terms: Timing and method of bonus payments, including any deferral mechanisms

9. Tax Treatment: Statement about tax and social security contributions treatment of bonus payments

10. Termination Provisions: Impact of employment termination on bonus entitlements

11. Clawback Provisions: Circumstances under which the company may reclaim paid bonuses

12. General Provisions: Standard legal clauses including governing law, amendments, and entire agreement provisions