Tanya R.

Hi! I am working on guide to help our HR delivery partners navigate Involuntary Terminations and Incentive Bonus Recovery.

BACKGROUND: Verbiage does exist in our employment agreement to recover sign-on and relocation bonuses if the active employee voluntarily terminates during the first twelve (12) months of employment –very standard language. The second restriction discusses the Company terminating said employee for poor performance or Cause at any time during the first employment year, and then goes on to define what Cause is, etc. Like many companies we have several involuntary codes to select when coding terminating employees, they are self-explanatory: Disciplinary, E-Verify Involuntary, Performance Related, Non-Performance Related, and Reduction in Force. Based on the language in the employment agreement, RIFs is easier to navigate than non-performance. Non-Performance typically warrants a discussion or review with Legal.

QUESTION: How would you or have you handled and deciphered the mechanics of a non-performance termination—someone who is not a good fit for the role due to skill mismatch, lack of potential in grade, etc. with a recoverable bonus? This would be an involuntary non-performance termination—through no fault of their own. I understand there is more to consider in this scenario, such as a PIP to correct shortcomings or move the person to a more suitable role, etc. Thank you for your feedback.