Any legal minds out there who can read between the lines of a FT offer letter? It says if the candidate fails to join the bank by whatever date, the sign-on bonuses are subject to a clawback. But what happens if the bank pulls our offer as we approach our start date, do we get to keep our sign-ons?
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Thx for the info. CS pays the early sign-on portion in September and the remaining (main) in Feb. Already got the early part, so was asking
What if you refuse to pay?
You have to pay it back full even the tax…
We have to essentially pay CS to fire us 🤣🤣🤣🤣🤣🤣🤣🤣🤣
No, in most if not all cases of a clawback, the bank will simply cancel the deposit (Just like canceling a credit card purchase). Assuming you have sufficient funds in your bank account, you wouldn't have to worry about anything like sending them a check, etc. You don't have to pay "extra" taxes. You only need to return the after-tax amount that was deposited into your account, and that like I said is done automatically by the bank.
Source: I lateraled to a different bank before completing one full year from a BB to another BB, and this was the clawback process.
This is true for when you lateral over before your clawback period is over, but cancelling a contract by the bank prior to start date is different :
1. If they have already paid you, they will usually not clawback anything. They will simply write in to let you know that the contract is rescinded with no further obligations on either side (including returning the sign-on if its already been paid). By accepting the terms (i.e. by keeping the sign-on) you also agree to absolve the bank of any course of action you think you might have . This also assumes that the bank is rescinding the contract for no cause (i.e. no fault of yours e.g. failing drug test, background test, etc.). Usually done by the bank to avoid any further lawsuits.
2. If they have not yet paid you, you are unlikely to be paid a sign on. Some banks have a policy where they may honor the sign-on by paying you in lieu of them rescinding the contract - but this is a bonus and not likely to be the norm.
Source: I know someone older who went through this process with BB in 2008.
Disagree, lateraled myself before one year but didn't quit until January so had to payback pretax amount. That said, I got a receipt from accounts payable at the bank and got to use the tax amount to offset my taxes for the next year.
Had I left by December 31st, I would have paid the after-tax amount
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