Sign-on Bonus - Physician Contract Glossary

Sign-on Bonus

Definition

A lump-sum payment given upon signing the employment contract or starting work.

Examples in Context

“Physician will receive a $15,000 sign-on bonus within 30 days of start date.”

“The sign-on bonus will be paid in two installments: 50% at contract signing and 50% after the first day of employment.”

Implications for Physicians

• Immediate cash can help with relocation or loan repayment.
• Often includes repayment obligations if you leave early.

Negotiation Tips

• Request partial bonus at contract signing and remainder at start date.
• Ask for a sliding scale repayment if employment ends early.

Red Flags and Pitfalls

• Full repayment demanded regardless of reason for leaving.
• Bonus may be taxed heavily upfront; consider after-tax impact.

Related Terms

• Repayment Provisions
• Loan Forgiveness
• Relocation Assistance

FAQs

• “When do I receive the funds?”
  • Most commonly at contract signing or within 30 days of your start date.
• “Can I negotiate a bigger bonus?”
  • Yes, especially if you're in a high-demand specialty or willing to commit to a longer contract term.
• “Do I have to repay the bonus if I leave early?”
  • Often yes, but you can negotiate for a prorated repayment instead of the full amount.

Legal Disclaimer

The information provided in this glossary is for educational and informational purposes only and should not be construed as legal advice. While we strive to provide accurate and up-to-date information, this content is intended to help physicians better understand common contract terms and does not replace professional legal guidance.

For personalized advice regarding your employment contract or other legal concerns, we strongly recommend consulting with a qualified attorney who specializes in physician employment contracts.

You can find experienced legal professionals through our Physician Contract Lawyer Directory.