If a job comes with a one year contract and I take it, what will happen if I find something better within the one year and want to leave?
Leaving My Job Before My Contract Is Up
Most employment in the United States is employment at will which means that either party can terminate at any time. The video below explains in further detail.
That being said, if you leave your job within the first year, you may activate a breaking clause that requires some reparations such as paying back a signing bonus.
User @abedneg06", a private equity managing director, shared a detailed response:
There should be an out or breakup clause that stipulates the penalty. If there's no penalty, perhaps you hand over a pro rata % of your signing bonus to avoid burning bridges. Generally employment contracts are longer than a year so I doubt the firm would give much trouble although HR might get upset. A one year contract also should exclude hefty provisions such as a non-compete, but if it is in there then you would have to carefully structure the scope & even region of your alternative positions.
Read More About Employment Contracts on WSO
- Contract Breaking: 2 Jobs at Once?
- Using an Employment Lawyer to Review Contract
- Employment Contract Questions
Find the Best Jobs on Wall Street
Subscribe to our extensive list of finance jobs! Free one month subscription to the job board if you fill out a WSO Applicant Profile by clicking here. Just send the link of your profile to [email protected] once it's created and get access within 24 hours.
Depends on the details of the contract and your firm relationship. There should be an out or breakup clause that stipulates the penalty. If there's no penalty, perhaps you hand over a pro rata % of your signing bonus to avoid burning bridges. Generally employment contracts are longer than a year so I doubt the firm would give much trouble although HR might get upset. A one year contract also should exclude hefty provisions such as a non-compete, but if it is in there then you would have to carefully structure the scope & even region of your alternative positions. If you're based in CA, it is easier to break employment agreements as it is a labor-friendly state.
Generally speaking nothing. The only thing that could happen from a legal standpoint is if there was some stipulated damages clause, which would basically mean a forfeit of your bonus -- it is highly unlikely that your agreement has any claw back provisions.
I agree with what the poster above said. Of course read the employment agreement, but what you'd want to be more concerned with is the potential reputational damage -- all that means is make sure you leave on a good note with your superiors and co-workers...don't worry about HR.
You can break any type of contract. The question that follows is, "how much will you have to pay?"
Non-competes are nearly impossible to enforce, especially at the junior level as they would have to show you are somehow using their proprietary information to gain the new employer a competitive advantage and then try to show damages.
You may have to give back part of your bonus etc, just read the contract.
Generally, most employment in the United States is "at will", meaning that either party can break the contract at any time for any reason (or no reason at all). It's likely that if you break your contract abnormally early (within the first year of employment), you'll have to repay some or all of your signing bonus.
Alright thanks guys, I'm still going through the stages of the interview process but if I receive the offer I'll just take a close look at the contract. I was just wondering in case I accepted the offer and a month down the road I was offered something at a better company, as I'm still going through a bunch of interviews.
Quas et quia optio assumenda autem id ratione. Et blanditiis in velit. Enim eligendi aut quaerat rerum occaecati voluptates perspiciatis. Nihil quaerat saepe sapiente delectus repudiandae quibusdam error earum. Accusamus dolorum est in dolorum quisquam. Vel ea molestiae eaque qui.
Ut et ea debitis aut voluptas fugiat unde. Explicabo quidem eligendi eligendi molestiae rem fuga. Aliquam enim et omnis ex. Voluptas quasi autem et. Aut voluptatem quas hic sit voluptas.
Corporis porro optio mollitia minus qui. Impedit qui ducimus molestiae eligendi. Delectus impedit praesentium natus repellat provident laudantium quidem.
Non adipisci fugiat quo placeat. Maxime enim fugiat et cupiditate repudiandae. At debitis non magni consequatur rerum facilis vero autem. Qui quos voluptatem accusantium hic distinctio.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...