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Is a Termination of Contract Penalty standard

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  • Is a Termination of Contract Penalty standard

    Hello,

    I am actively searching for primary care jobs and came across an offer that seemingly had a large (>>100k) penalty for leaving before the end of the contract. This is in addition to prorating and repaying the sign on bonus. Is this typical? Thanks for insight and suggestions!


  • #2
    Sounds like an abusive workplace to me.

    Unless you are working in a remote location. Like Antarctica or Mars.
    ​​​

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    • #3
      If you want the job negotiate it out of the contract. I'd never sign such an agreement.

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      • #4
        I dont think it is standard, but there are a lot of costs which go into recruiting physicians.

        One of the following may apply

        1. the job is so great that they can do that in their contract
        2. the job is horrible and they have had several physicians leave abruptly , so they are trying to keep you by penalizing you financially
        3. the administrator is a ****

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        • #5
          sounds unlikely its number 1, more likely combo 2 and 3

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          • #6
            Don't sign that.
            A non-compete? sure. Pay back a bonus? fine. But a 6 figure penalty? No way.

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            • #7
              I appreciate everyone’s input. I thought it seemed aggressive, and I am glad i wasn’t alone

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              • #8
                Obviously it depends on the market and what others are offering. Somehow I doubt all the other employers are making similar offers to docs.

                I've had a non-compete with a nearly 7 figure option to have the non-compete removed. Obviously I never had the slightest inclination exercise that option. And I suppose having such an option is technically better than not having it at all.
                Last edited by AR; 07-20-2021, 03:59 PM.

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                • #9
                  It's nice that they tell you the job sucks without actually having to say it out loud.

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                  • #10
                    90 to 120 days notice prior to departure is fairly standard in physician contracts. Paying back a signing bonus or retention bonus is also fairly common, typically with a declining amount owed with the passage of time.

                    But a straight up 6 figure penalty for departure is very unusual. Is this a straight penalty, or is it payback of a signing bonus or retention bonus?

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                    • #11
                      Sounds like forum has spoken

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                      • #12
                        The fact that they have that in the contract is telling enough. Walk.

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                        • #13
                          Originally posted by ENT Doc View Post
                          The fact that they have that in the contract is telling enough. Walk.
                          Run!

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                          • #14
                            In case you need one more opinion- RUN!

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                            • #15
                              There are primary care jobs everywhere and the wait for a new patient to get into a primary care office is >3 months even in major cities. Don’t accept stuff like that in your contract.

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