Payback Sign-On Bonus?
So i started this job less than a year ago and they said to get your sign-on bonus you have to sign a form that says you can't leave before a year. so i just got a decent job offer and its been less than a year, but i received the money and never signed the form, do you think they'll come after me even though I didn't sign the form? any advice would help.
thanks.
I think they will. Don't be a flake anyway, either honor your agreement and stick it out a year or pay them the money back. If you can't afford it outright, then ask them to let you do a payment plan. They are usually pretty good about that.
Most firms will make you payback a prorated amount of any signing bonus if you leave before the specified period, usually one year. If you do leave, paying back a prorated portion of your bonus is a lot better than having a former employer who will, more or less, call you a thief if they are called for a reference. This has happened before and I'm sure your former company will work with you on it if you are honest with them.
yeah but since I didn't sign anything and they paid it would i be obliged to pay back, since i'm contractually not obligated?
Whether you're obligated to or not doesn't really matter. It's not worth torching those bridges for a signing bonus.
How do you pay this back? Let's say your bonus is 35,000. Are you expected to pay it in cash? Payment plan? Layaway? Consignment?
You have a verbal contract, regardless of whether or not it is officially in writing. They do have legal recourse against you for the bonus.
Also, Wall St. is a small street, so you can easily become that "thief" referenced in an above post.
You would be expected to pay it back in cash, but they would work with you on a payment plan if you couldn't pay it all up front.
This hits the nail on the head. Just pay it back and enjoy the new career
Some legal nut correct me if I'm wrong but I think a verbal agreement wouldn't apply since the bonus is probably over a certain amount.
You're wrong. The amount has absolutely nothing to do with anything.
A contract has 3 elements; offer, acceptance, and consideration. There was an offer: We will pay you this amount of money if you agree to work here for 1 year. There was acceptance: He took the money and started working there. There is consideration: He is providing a service to the company for whatever his job description was, and he is being paid for this.
Interesting. Thanks for clearing that up for me.
i verbally didn't agree and its not a firm in nyc or even on the street. its a big jump that im thinking about making.
Is it worth the burned bridges (and this could extend past this firm)? Is it worth the risk of being sued (and probably losing)? Is what you are doing ethical?
The fact that you accepted the money with knowledge on both sides that you would have to pay it back if you leave before a year sounds like sufficient evidence on their part.
Unless repayment of this bonus would severely hinder you for the rest of your life, I wouldn't suggest keeping the money (prorated or not) and risk the legal battle afterwards.
That is, even if they care, which I assume they would since they brought the topic up in the contract.
Does anybody know the answer to this question - Lets say your 1 year is completed on July 1st. Can you give your two weeks before so your last day is July 1st? or do you have to give your two weeks on July 1st?
Good question. My inclination is that, and I am assuming you're asking in relation to the "payback bonus" situation above, giving them notice of your resignation as of the day that your year would expire would be sufficient since you will have fulfilled your portion of the contract, to work there one year. You could technically tell them 3 months out and say that your last day will be "July 1st" and fulfilled your obligation.
This is especially true in this case since the contract was verbal and there would be no way for the employee to know if the paper contract contained any language regarding termination. The firm could technically tell you not to come back and you would not have met your full year since you would be two weeks away. This is what I mean about termination. It depends on what the contract say's, but it could be written so that a termination prior to one year required payback of the bonus. I doubt that there would be something to that effect, and that it would simply be general and say employed for one year, but it could say something to that regard and it would impact someone who signed a physical form (or should have reasonably believed this to be the case and entered into a verbal contract).
Hope that makes sense. Either way OP, may advice is to pay that shizz back.
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