Am I entitled to my bonus if I quit?

Am-I-entitled-to-my-bonus-if-I-quit

If you have already earned a bonus, then, yes, the employer must pay it out, together with all outstanding wages accrued to your intended date of resignation. 

If you voluntarily resign before bonus is earned, then typically, there is no legal obligation on the part of the employer to pay it out. Similarly, if all or a part of bonus compensation is deferred, and there are legally enforceable forfeiture conditions in the event of resignation, the employee may be out of luck as it relates to deferred bonus compensation.  The employee’s rights will very much depend on the specific language of the bonus plan or contract terms dealing with bonus.  

There are some important exceptions.  For example, if the employee is forced to resign from their employment because they have been constructively dismissed, the employee is entitled to constructive dismissal damages which generally include damages for lost bonuses.  

Further, the forfeiture terms in the contract or plan may not be legally enforceable, in which case, the forfeiture language is void.  There could be a variety of reasons that justify setting aside these types of forfeiture conditions. For example, if the employee was never made aware of the forfeiture language at the appropriate time, or if the language may be contrary to statute.  As lawyers representing employees in these situations, we generally examine the circumstances surrounding the employees resignation, the forfeiture language in question and determine whether there may be a viable claim for earned and accrued bonuses or damages for loss of bonuses. 

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