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
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