A startup is offering $5000 as sign-on/relocation, but there's a catch saying that if the employment is terminated, then I'm responsible for paying the full amount back to the company. Is this a usual practice? It's my first time signing up with a startup! Please help. #startup #bonus #sign-on
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Clawbacks is standard for any company, not just startups.
Rarely enforced tho. Too much trouble for the company
For 5k unlikely but dependent on the size of the sign on. I know people where they received notification from companies that intended to enforce so it does happen.
You can usually ask the next company to cover that.
That’s shitty relocation assistance. You’ll get $2700 after taxes.
Agreed! But that's all they give! Recommend against joining?
I’d have to know total comp, location YoE all that to give an opinion. Sign-on is nice to help you get over the RSU cliff. It should be treated as part of total comp.
That’s a very bad relocation package. It’s not even sign on bonus.
Ask for bonus separate from relocation expenses
Yeah I had one like that years ago. The devil is in the details. Mine said if I terminate the job then I had to pay it back. If they fired me then I did not had to pay it back. Also, If a year had passed then no pay back was needed and it did not matter the reasons or if I left by my own. Check the details of the wording and yes it is standard practice.
You shouldn’t have to pay back if they terminate you. If you leave, clawbacks are common for relocation and sign on bonuses.
Yeah you can claim constructive dismissal and leave to avoid repayment.
Standard practice. Kroger does the same
Run
Huh usually if you stay longer than a year then you don't pay anything back
Yeah, that's what they say! But is it usual for companies to mention a clause like that?
Yes it's usual if they specify a time. Some will ask for relocation back if leaving within a year as well.