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Lady Themis
Lady Themis, Lawyer
Category: Legal
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Experience:  General practice experience in many areas of law
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I signed an employment contract on Dec. 1 2008 for three years

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I signed an employment contract on Dec. 1 2008 for three years of service. The contract protected them b/c of a signing bonus they gave me. Since that time they have changed the benefits, particularly the 401k and the vacation time. This not only takes back part of their portion of the contract, but causes me to loose money during that three years. Can I get out of this contract without paying the signing bonus back?

Thank you for your question.


If your employer has breached the employment contract, you can most likely back out without having to pay back the signing bonus. There should be a provision in the contract itself which provides for remedies in the event of the employer's breach. You should read that section carefully to determine your rights under the contract.


If the employer truly breached the contract, you would most likely be entitled to everything you would have been entitled to had your employer not breached. This includes wages, signing bonus, medical insurance, etc. However, you must "mitigate" any damages you receive by attempting to find other work which would lessen your lost wages and other damages.


I truly recommend having an employment attorney in your area review the contract before you back out of the employment, because you don't want to get stuck being the breaching party.


Good luck to you.



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