Timing your move · 5 min read
Should I quit before or after my bonus?
How bonus rules usually work when you resign, how to read your plan, when to hand in notice, and how to ask a new employer to cover what you'd lose.
The short answer
Usually after. Many bonus plans only pay people who are still employed, and sometimes not under notice, on the payout date. Resigning even a day early can mean losing it. Read your contract and bonus plan for the eligibility rules, check whether the bonus is discretionary or contractual, then time your notice for the day after payment lands if you can. If the new employer can't wait, ask them to make up the loss with a sign-on bonus. In the UK a contractual bonus can be owed even after you resign, and in the US the plan wording usually decides, so get advice if a large sum is at stake.
Key takeaways
- Many bonus plans require you to be employed, and not under notice, on payout day.
- Read your bonus plan and contract before you resign.
- Resign after payment lands if the timing allows.
- Ask a new employer for a sign-on bonus to cover what you'd lose.
On this pageHow bonus rules usually work
How bonus rules usually work
| Clause | What it usually means |
|---|---|
| Employed on payment date | Resign after the money arrives |
| Not under notice on payment date | Hand in notice after the money arrives |
| Pro rata for leavers | You get a share for months worked |
| Good leaver / bad leaver | Resigning may count as a bad leaver |
| Clawback | You may have to repay if you leave within a set time |
Read your plan before you decide
- Find your contract, bonus policy and any annual bonus letter.
- Note the payout date and the eligibility conditions.
- Check for clawback periods or deferred payments.
- Check your notice period, so you know your earliest leave date.
- Ask HR neutral questions, such as 'when is this year's bonus paid?'
UK and US differences
In the UK, if a bonus is contractual and you've met the conditions, it may still be owed after you resign, and discretionary bonuses must be decided rationally. In the US, the US Department of Labor treats many bonuses as part of pay for overtime purposes, but whether a leaver is paid depends mostly on the plan and state law. In both, the wording matters more than custom.
Negotiating with the new employer
Be open with the new employer. Say how much the bonus is, when it pays and what you'd lose by starting early. They can start you later, offer a sign-on bonus, or both. Hiring teams deal with this often, and asking is normal.
Illustrative example
Marcus gets an offer in February. His bonus, worth about two months' pay, is paid on 15 March to staff not under notice. He tells the new employer, who agrees to a start date in mid April. He resigns on 16 March, the day after the payment lands, and leaves on good terms.
If you're already under notice
If you've already resigned and the bonus date falls during your notice, read the plan closely. Some plans pay people under notice, some pay a pro rata share, and some pay nothing. If the bonus is contractual in the UK and you've met the conditions, you may be entitled to it even though you're leaving. Raise it calmly with HR in writing, quoting the clause. For larger sums, Acas, a union or an employment adviser can tell you whether you have a claim.
Questions people ask
- Can my employer refuse to pay my bonus if I resign?
- Often yes, if the plan says you must be employed or not under notice on the payout date. If the bonus is contractual and earned, refusing it may be a breach in the UK. Check the wording and get advice for large amounts.
- What's the difference between a discretionary and a contractual bonus?
- A contractual bonus is promised in your contract if conditions are met. A discretionary bonus is decided by the employer each year. Even discretionary bonuses must be decided fairly and rationally in the UK.
- Will a new employer really pay a sign-on bonus?
- Many will, especially for experienced hires. Show them the amount and date, and ask them to cover it as a sign-on bonus or a later start date.
- Should I tell my manager I'm leaving before the bonus?
- Not if it could affect eligibility. Keep your search private until the bonus has been paid and you've accepted a written offer.
- What about stock that vests soon?
- Treat vesting dates the same way. Check your equity plan for what happens to unvested shares when you leave, and weigh the value against the new offer.
- What if my new employer wants me to start before the bonus date?
- Explain the amount you'd lose and ask whether they can either move the start date or cover it. Many will do one or the other. If they won't, weigh the bonus against the value of the new job over the next few years.
Exercises are practice, not evidence of career fit or a qualification. How to read our guides and report a correction.
Sources
- Fact Sheet #56C: Bonuses under the Fair Labor Standards Act · US Department of Labor
- Employment contracts · GOV.UK
- Giving notice and notice periods · Acas
How this page is written
Sources support the factual background, not a guarantee that an exercise predicts career fit. Fictional practice material is labelled. Dates record content updates; no independent expert review is implied. More about OffLadder.