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Joyce K. Reynolds is an expert Business Coach who works with CEOs, Sr. Execs, entrepreneurs and countless others providing knowledge, solutions, motivation and support that assist her clientele in successfully meeting workplace challenges. Find out more about Joyce's coaching practice.

Keeping a Signing Bonus

Question: I was recently employed for one month by a company that paid a signing bonus within the first 2 weeks of employment. I did not sign any documents stating that I have to remain employed with the company for any specified amount of time. I resigned from the company because the work conditions were not as expected. Will I be required by law to return the signing bonus due to the short amount of time employed even though there were no written documents indicating this upon accepting the position?
Nancy

Answer: Generally, there is a designated period of time after which a sign-on bonus would not have to be repaid if a new hire leaves. That period fluctuates depending on company policy and the level of position involved, typically, no less than 30 days.

The question you ask is about the legality of keeping the sign-on bonus in light of not having signed any agreement even though it appears that you left voluntarily after only one month's employment. If there were no contractual arrangements, there is little for the company to pursue by way of recovering the bonus paid to you. If, however, the bonus is significant enough to the company and there was some witnessed verbal agreement that would support a claim of return, they might opt to threaten court action. From your brief description this seems an unlikely outcome which leaves you with an ethical deliberation.

So, let's contemplate a few things. You state that your reason for leaving the company had to do with the work conditions being less than what you expected. You do not say that the company misrepresented the actual position in any way or that they were trying to alter the job without your consent. It is not clear why you didn't know what the working conditions were before you were hired. Certainly, it is up to the prospective employee to ascertain where they will be working and under what conditions before they accept a position. You can, therefore, start seeing that it would be helpful for you to discover and accept what your part was in what turned out to be a mistaken hire.

Were you unduly swayed by the bonus? Did you truly perform your due diligence before accepting it and the job? Why did it take a month for you to discover these unacceptable conditions? Was this a simply matter of your not negotiating good working conditions for yourself? After you have asked and answered these questions, you'll know a little more about what your part was in this episode.

Ethics involves determining not necessarily what is legal but what is right or wrong. Some ethicists might assert that there's always a right thing to do based on moral principle - which would mean - give the bonus back. Others might tell you that the right thing depends on the situation. In the end, what you need to determine is if keeping the bonus can possibly pass the 'fairness test.' If you are left with a simple matter of conscience - ask yourself if you risk lowering your opinion of yourself or if your outside reputation as a principled, fair individual might be tainted in anyway by keeping the money. Ultimately, it's up to you to determine what your un-rationalized truth really is, where your moral compass is leading you. All that said and done, my bet is you'll give the money back.

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Disclaimer: The information in this column is intended to provide the reader with general ideas or concepts to be used as part of a broader base of knowledge they collect to determine their own best course of action and solutions most suitable for solving their workplace challenges. The information in this column is not guaranteed to be the appropriate solution for each individual.