Legal Question in Employment Law in New Jersey

Paying Back a sign-on Bonus when terminated

The wording in my offer letter is: ''If you resign your employment for any reason other than job elimination the entire sum is to be repaid within two months.'' I was terminated, and did not resign my position. Will I have to repay the sum?


Asked on 6/02/07, 4:59 pm

2 Answers from Attorneys

Glenn Brown Real World Law, P.C.

Re: Paying Back a sign-on Bonus when terminated

Would need to read the entire agreement to be sure, however this language suggests a voluntary action on your part rather than an act by the company.

Good luck to you.

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Answered on 6/02/07, 6:49 pm
John Corbett Corbett Law Firm LLC

Re: Paying Back a sign-on Bonus when terminated

Agreements should always be read in context, so it is difficult to say for sure without reading the whole document. That said, it certainly seems as if an involuntary terminiation through no fault of yours would not trigger the payback requirement. Additionally, consideration given as an inducement to accept a job is usually earned when the job is accepted absent an agreement to the contrary. So, you should be able to keep any signing bonus.

You may want to look further. Depending on the circumstances, the law will sometimes imply a contract to continue the employment for a reasonable period of time if you have to move or make other sacrifices to accept a new job. Your situation may fit if any written contract is silent on the length of employment.

See also: http://info.corbettlaw.net/lawguru.htm

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Answered on 6/03/07, 10:00 am


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