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Q: Resigning after receiving a bonus check ( Answered 5 out of 5 stars,   6 Comments )
Question  
Subject: Resigning after receiving a bonus check
Category: Business and Money > Employment
Asked by: flower123-ga
List Price: $20.00
Posted: 13 Feb 2006 08:32 PST
Expires: 15 Mar 2006 08:32 PST
Question ID: 445229
I work for a Four Seasons Hotel.  How long do I need to wait after
receiving a bonus/incentive check based on my performance in 2005
before resigning?  Is the Four Seasons Hotel & Resorts company
different than other companies?  And, does each hotel have a different
policy?  Thank you very much
Answer  
Subject: Re: Resigning after receiving a bonus check
Answered By: richard-ga on 18 Feb 2006 20:21 PST
Rated:5 out of 5 stars
 
Hello and thank you for your question.

The comments below are correct - - unless you have specifically
committed to a term of employment, you are free to resign at any time.
 The bonus that you received is recognition of your past services, and
carries no commitment for future work.

"To use the at-will relationship most effectively, you need to
understand what it means. Generally, employees who do not have
contracts guaranteeing employment for a specific period of time (such
as one year) are considered to be at-will employees. Under the at-will
doctrine, employers have the right to terminate employees without
these types of contracts at any time and for any legally permissible
reason. Employees also have a similar right to resign whenever they
want. In other words, it is a cold, somewhat harsh, legal concept that
says both parties can terminate the relationship at any time.
http://www.ppspublishers.com/articles/atwill_terminate.htm

Even in the more extreme case - - where the bonus is a 'signing bonus'
the person can fulfill his or her obligation in full by showing up and
working a minute or a day:
"Accepting a signing bonus forms a legal commitment by the job
candidate to work for the employer. However, the job is still
employment-at-will and the employee can resign one minute after
beginning work. Even if the job candidate terminates the relationship
before starting the job, the employer may not be able to obtain a
refund of the bonus.
Because most employment offers and acceptances are for unspecified
periods of time, the creation of an enforceable employment contract
based on an offer and acceptance is highly unlikely. While there may
be a moral commitment to follow through with the employment
relationship, especially in the case of a signing bonus, the employer
and job candidate must rely on their ethical commitments to each other
for the agreement to have any viability."
The Ethics of Offers and Acceptances
http://www.rpi.edu/dept/cdc/NACEarticles.html

Another example can be found in an employment agreement where there
was a specific agreement regarding receipt and repayment of bonuses. 
Clearly if you haven't made such an agreement you are purely an
employee-at-will.
"Signing Bonus:            You will receive a signing bonus equal to$5,000,000.
                          The signing bonus will be reduced by the
amount of any gain realized from the exercise of any vested stock
options you have received from your previous employer (i.e., the
difference between the "strike price" of any such options and the
price at which such shares close on the date exercised or the actual
selling price on that date). You will provide the necessary 
documentation to establish the amount of such realized gain and the
resulting reduced signing bonus amount (the "Net Signing Bonus"). The
Net Signing Bonus will be paid as follows:
                          50% on the later of 30 days after the
employment start date or 7 days after the Net Signing Bonus is
determined
                          25% on the first anniversary of your
employment start date;
                          15% on the second anniversary of your
employment start date; and
                          10% on the third anniversary of your
employment start date.

                          In the event that you resign without Good
Reason or are terminated for cause within one (1) year after your
employment start date, you agree to return to GCL the first payment of
the Signing Bonus, prorated on a monthly basis for the period worked."
http://contracts.corporate.findlaw.com/agreements/globalcrossing/cohen.emp.2000.04.26.html
[Wouldn't we all like to work for Global Crossing!]

Anyway, enjoy your bonus - - you've earned it!

Search terms used:
employee "at will" resign bonus

Thanks again for letting us help.
Google Answers Researcher
Richard-ga
flower123-ga rated this answer:5 out of 5 stars and gave an additional tip of: $5.00
The comments & answer were most helpful and helped me to understand my
situation further.  Thank you very much.  What a wonderful tool!

Comments  
Subject: Re: Resigning after receiving a bonus check
From: tr1234-ga on 13 Feb 2006 08:41 PST
 
Did you sign any sort of employment agreement with this company that
would specify their policy? It certainly seems that this would be the
kind of thing that varies from employer to employer, but I can't quite
imagine any sort of employment agreement typical to your situation
where your employer could reclaim your earned bonus after it's been
paid to you...
Subject: Re: Resigning after receiving a bonus check
From: nelson-ga on 13 Feb 2006 11:13 PST
 
Building on what tr1234-ga said, unless you have a written & signed
agreement to the contrary, the minute you deposit the check would be a
good time to dial up the boss and say "so long, sucker".
Subject: Re: Resigning after receiving a bonus check
From: flower123-ga on 13 Feb 2006 12:40 PST
 
The only paperwork I signed when I started was a 1 page document
stating my salary & position and something noting that I received &
read the employee handbook.  I reviewed the handbook and it does not
mention anything about bonuses.  Thank you so much for your help.
Subject: Re: Resigning after receiving a bonus check
From: frankcorrao-ga on 14 Feb 2006 11:30 PST
 
As soon as the check clears, you are free to resign, given you signed
nothing stating otherwise.  It's pretty standard practice on Wall
Street.  Bonus week is also employee edodus week.
Subject: Re: Resigning after receiving a bonus check
From: tr1234-ga on 14 Feb 2006 18:19 PST
 
Another thought to add to everyone's comments:

Many employers 'protect' themselves by structuring their incentive
plans so that the bonus is paid some time after the period for which
the work incentivized is done AND with the understanding that if the
employee is not employed (e.g. quits) when the bonus is scheduled to
be paid, then the employee forfeits the bonus.

For instance, the employer's incentive plan may cover work during the
calendar year (thru December 31) but be payable to the employee on,
say, March 31st. If the employee quits before March 31, then he/she
does not get the bonus.  In many if not most cases, that window of
time is all the protection employers seek or have against employees
quitting too soon after a bonus is earned.
Subject: Re: Resigning after receiving a bonus check
From: joe916-ga on 18 Feb 2006 12:44 PST
 
California labor code 221 states

 It shall be unlawful for any employer to collect or receive
from an employee any part of wages theretofore paid by said employer
to said employee.

I don't know what state you're in, but if in CA I'd wait for the check to clear.
Also give 72 hour notice and if you don't receive ALL pay due file a
claim with the D.L.S.E. you'll also get penalties.

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