Any lawyers or corporate bros in here that have experience regarding a repayment of a bonus that amortizes over a specified period? I'm at a top real estate firm (global/Big 4) for a valuations position and was awarded a $50,000 licensure/sign-on bonus in 2023. Wanting to know what constitutes “leaving” in a workplace, if that means the employee voluntarily resigns or quits. To me, it doesn’t seem like being terminated would fall under “leave”, otherwise the language “if employee becomes unemployed with "XXX” may have been used as an all encompassing stipulation for repayment? Below is how the agreement is laid out. Any advice is appreciated!
"Employee will receive a bonus in the amount of $50,000 from XXX, LLC (“XXX”) in connection with Employee’s recent receipt of certification (“Certification Base Bonus”). The Certification Bonus will be paid within 90 days after Employee provides a copy of their state Certified General license.
Employee acknowledges and agrees that the Bonus will amortize as one award, over three (3) years, with 1/3 of the Bonus vesting annually. By way of example only, if Employee receives the full bonus and leaves "XXX" within six (6) months after receipt of its appraisal certification, then Employee will be required to repay the entire Bonus; if Employee leaves within the first and second anniversary of its receipt of the applicable appraisal certification, then Employee will be required to repay 2/3 of the Bonus.
Nothing in this Agreement is intended to create a contract of employment by "XXX" or to modify the at-will basis of Employee’s employment, meaning either Employee and "XXX" may terminate the employment relationship at any time, for any or no reason or cause."
Based on the most helpful WSO content, here are some key points to consider regarding your bonus agreement repayment:
Definition of "Leaving":
Termination vs. Voluntary Resignation:
Amortization and Repayment:
At-Will Employment:
Recommendations:
If you need more detailed advice or have specific scenarios in mind, feel free to ask!
Sources: https://www.wallstreetoasis.com/forum/investment-banking/jefferies-are-these-rumors-true?customgpt=1, Leaving for another fund - How to deal with current employer?, 2 successful years at the firm, 2 years of 0 bonus and minimal pay rise, Not Paying Back Signing Bonus, What to pay attention to when signing a contract?
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