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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 |
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Subject:
Re: Resigning after receiving a bonus check
Answered By: richard-ga on 18 Feb 2006 20:21 PST Rated: |
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
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The comments & answer were most helpful and helped me to understand my situation further. Thank you very much. What a wonderful tool! |
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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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