Hello everyone. I have a question that I am hoping someone on here who's qualified can answer for me. I started at a company about 10 months ago and received a sign-on bonus of $10k with the stipulation that I remain with the company for at least one year or the bonus is repayable. This was outlined in an offer letter that was emailed to me but never signed. Anyway, I have been offered a much better position and my new employer is willing to have me start after my one year anniversary passes with my current employer. Here is my question: I intend to inform my current boss of my resignation 2 weeks before I actually leave but with an effective date AFTER my anniversary. So technically I will still be an employee on my anniversary date, even though I would be leaving the company the day after. Can I be held liable for the repayment of the bonus because I announce my resignation before my anniversary date? Remember, my last day will be after one year of service. I would appreciate any insights. Thanks in advance!
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Repay signing bonus?
- Thread Starter hearmenow
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I'm not an attorney so I can't answer your question but you will be screwed if he decides to let the day you hand him your notice be your last day. He doesn't have to let you work it out. He could just tell you to go home that day and you will be obligated to pay back the bonus.
cbg
Super Moderator
Your employer would not be under any legal obligation to allow you to work out your notice. He could ask you to leave the same minute you hand in your resignation, and it would be entirely legal.
Under those circumstances, you would NOT still be an employee on the anniversary date. The fact that you were willing to work until after the anniversary date does not mean you are still an employee until the last day of an unworked notice.
I'm not judging you; only you can decide if this is the right move for you or not. But you are violating the agreement in spirit if not in letter. If you hand in your resignation before the anniversary date and your employer asks you to leave immediately, which he legally can, he could conceivably demand return of the bonus. And you would not have fulfilled the terms of the agreement; you would not have worked the full year; you would not have legal justification to refuse.
The only safe way I can see to be certain you do not have to repay the bonus, is to fulfil the agreement and not turn in your resignation until after the anniversary date has already passed.
Under those circumstances, you would NOT still be an employee on the anniversary date. The fact that you were willing to work until after the anniversary date does not mean you are still an employee until the last day of an unworked notice.
I'm not judging you; only you can decide if this is the right move for you or not. But you are violating the agreement in spirit if not in letter. If you hand in your resignation before the anniversary date and your employer asks you to leave immediately, which he legally can, he could conceivably demand return of the bonus. And you would not have fulfilled the terms of the agreement; you would not have worked the full year; you would not have legal justification to refuse.
The only safe way I can see to be certain you do not have to repay the bonus, is to fulfil the agreement and not turn in your resignation until after the anniversary date has already passed.
Interesting...
Thank you both for your thoughts. I was actually of the mind that if I gave my notice prior to the one year but with an effective date after and he decided to let me go, then in effect, I was relieved of the duty to repay the bonus since he made the decision to terminate me prior to the anniversary date. I am fully willing and prepared to work through the one year and out of courtesy I am giving me 2 weeks notice. Thank you for your opinions.
Thank you both for your thoughts. I was actually of the mind that if I gave my notice prior to the one year but with an effective date after and he decided to let me go, then in effect, I was relieved of the duty to repay the bonus since he made the decision to terminate me prior to the anniversary date. I am fully willing and prepared to work through the one year and out of courtesy I am giving me 2 weeks notice. Thank you for your opinions.
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