What happens if you sign a retention contract and later change your mind? First, it is important to note that before you sign this type of agreement you should confer with a knowledgeable attorney who can make sure you are considering all your options and help prevent regret later. Second, if you have already signed the contract and you have changed your mind, it is time to confer with legal counsel. A retention agreement is a legally binding contract, so you do not want to act until you know all the consequences.
If the reason you have changed your mind is because there has been a change in circumstance and you believe your retention value has significantly increased, don’t be scared to attempt to renegotiate with your employer for an increased retention payment. For example, if your retention has become crucial to a merger or other deal closing, your employer may recognize this increase in value and be willing to pay you more.
If the opposite has occurred, and circumstances have worsened, you should politely and respectfully email your boss or human resources department. For example, if you lose your support staff or you are asked to take a cut in pay, it is important to establish a paper trail in case they are trying to force you to quit. If you quit, you may not be entitled to receive your retention bonus, which saves your employer lots of money. However, if you want to leave or feel that you must leave, ask your employer to pay a pro rata portion of your retention payment, according to the amount of time you have completed of the retention period.
If a legal dispute arises between you and your employer regarding the retention contract, it is imperative that you contact an experienced attorney. You may also want to slowly and discreetly start taking your personal items that are at the office to your home. Do not take anything that belongs to your employer, especially confidential information. If you are not sure if something belongs to you or your employer, err on the side of caution and leave it at the office. Your attorney can assist you in providing the employer any necessary notices of default or other matters that can assist you if a lawsuit is initiated.
Negotiating and drafting retention agreements is Mailly Law’s primary area of practice. We have years of experience and understand the complexities involved. Let us fight for your rights and help obtain a contract that is the most beneficial to you. Contact our office today.