Agreement to Suspend Salary Payment
This Agreement is made and entered into on this ________ day of __________, 20__ by and between ______________________, hereinafter referred to as the Employer and _______________________, hereinafter referred to as the Employee.
WHEREAS, The Employer desires to suspend the payment of the salary of the Employee for certain agreed upon period of time, and
WHEREAS, the Employee, for the consideration agreed to below, consents to the suspension,
Now, therefore, in consideration of the premises and mutual covenants and agreements herein contained, and for other good and valuable consideration, the parties agree as follows:
1. Suspension of Salary Payment.
The parties executed this Agreement in order to suspending the payment of the salary of the Employee. During the period of this Agreement, the Employee has agreed to remain employed by the Employer without being paid during the period, provided that no other benefits such as insurance, vacation, or sick days will be provided in times of suspension, and provided further that the Employer shall make no deductions from the salary for taxes or other withholdings.
2. Considerations.
In consideration for the Employees agreement to accept the suspension of payment, the Employer shall, within __________ days of the expiration of this Agreement, pay the sum of ____________ to the Employee representing the amount of the salary that would have been paid during the period of suspension.
3. Additional Benefits.
During the period of suspension, the Employer agrees to extend additional benefits to the Employee, including health insurance and life insurance coverage, at no cost to the Employee. In addition, the employees vacation and sick day accumulations shall be left intact, and the Employee may take vacation time while on suspension.
4. Qualification for Promotion.
The period of suspension and the services performed by the Employee during the period shall be taken into account by the Employer in determining the eligibility of the Employee for any advancement or promotion.
5. Agreement to Resume Duties.
At the expiration of this Agreement, and when the salary reinstatement period has commenced, the Employee fully agrees to resume all duties of the position held prior to the agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first above written.
Employer
Employee
