I would be interested in hearing the contract terms other hospitals offer on sign-on bonuses, after my own recent (bad) experience with one.
I recently accepted a full time position in this hospital. At the time of interview, offer, and acceptance, there was no mention of a bonus nor of any commitment. When I started work, and filled out all the papers in HR, they said I was "eligible" for a sign-on bonus with a 4-year commitment and to speak with my supervisor if I was interested. I did, and she wasn't even aware of it, but checked into it and then came back and said I was eligible and gave me a contract and a separate promissory note, both already signed by 4 administrators of the hospital.
I looked it over for a day, and there were terms that made me very uncomfortable. Such as:
"Recruit agrees to execute a Promissory Note made payable to in the amount of bonus which will expire unpon the completion of the four years of service."
"If prior to the completion of four years of service, Recruit resigns, quits, self-terminates or otherwise leaves the service of for any reason including forced termination initiated by , Recruit agrees to pay the $7500.00 Bonus that he/she received in full within 90 of separation."
"If Recruit is terminated for just cause prior to the completion of four years of service, Recruit agrees to pay the $7500.00 Bonus that he/she received in full within 90 days of separation".
Well, my problems were many! First off, they would tax the you-know-what out of it, so that I would net maybe only $4000. Not really a lot of money for a 4-year commitment when you think about it.
Secondly, there was no proration clause. This was my first sign-on bonus, but I have worked several seasonal contracts where they have a monthly stipend bonus and there is always a proration clause, where if you don't finish the contract, you owe them a prorated amount based on how much time you did finish.
Thirdly, I was hired for a newly created position in this hospital. What if they eliminated the position and did not have another comparable full time position? What if I got sick with some longterm illness or injury and had to leave? Not only would I be cash-strapped, but I would have this debt to the hospital!
Lastly, a legal promissory note? In my mind, that then makes it a loan, and not a bonus. In fact, there would be interest (at an unspecified rate) if not paid back within 90 days, and clauses about having to pay their legal expenses if I defaulted and they had to collect. This was not a bonus!!
I asked them if we could modify and reword the contract, and they said no. So I told them that I would decline the bonus, thank you very much for the offer, etc. I kept the original unsigned contract in my possession.
There is more to the story. In a nutshell, they actually paid me the bonus by direct deposit to my bank account, after I had verbally declined it! And then (I felt) the HR guy tried to coerce me into accepting it and signing the contract, even after I had declined it.
(I gave the net amount back, and they finally agreed that, since it was their "mistake", to be responsible for getting the taxes back from the IRS. (I hope it doesn't screw up my taxes for this year!))
My question for you is this: For those who had received sign-on bonuses, what kind of terms did they give you? What was the length of your commitment? Was there any kind of prorated schedule if you left before your commitment? Could they initiate a "forced termination" and then demand the money back? Did they make you sign an actual legal promissory note?
I'm really interested in hearing how other hospitals handle this. Thanks!
