Breaking a contract - thoughts

consulting
Recent activity on Apr 11, 2018
3 Answers
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Anonymous A asked on Apr 11, 2018

Hey PrepLounge, I've accepted an offer in February to join a Tier 2 firm (let's call them Company X), scheduled to start work in June, but have just recieved an MBB offer. The MBB process took 3 months, and back in Feb I accepted Company X's offer given their offer dealine and the lack of certainty around this MBB process.

Curious to hear whether you would break Company X's contract to join MBB if you were in my position, and why. Also if you would break Company X's contract, how would you go about it? In a serious dillemma and keen to hear thoughts. Cheers.

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Andrea
Expert
Content Creator
replied on Apr 11, 2018
Former BCG Principal and decision round interviewer

Even if there is a contractual impact (you won't get into legal trouble unless you are working for both companies at same time); sign new offer with MBB and negotiate start date with them so you get out of contractual obligations (e.g. do you need to give x weeks notice or do you need to refund sign-on bonus).

Hope it helps,

Andrea

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Vlad
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replied on Apr 11, 2018
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

Hi,

  1. It depends on the country, but in most of the cases legallyy you still can break this contract and they will not sue you if you do it in a polite way
  2. You'll have to give back the sign on bonus if you have one
  3. You'll never get a job in this company again (and in any company that this company acquires)

To mitigate the consequences you should:

  • Be transparent with a firm that you want to move to a different company
  • Explain your reasoning
  • Talk openly not only to HR but also to the manager of the team where you were supposed to be hired
  • Be very polite

MBB is definitely worth it so I guess it's a no-brainer

Best,

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B
Expert
replied on Apr 11, 2018
NOT AVAILABLE

Hey anonymous,

If I was you I would check whether there's any legal impact on doing it in your country (very unlikely, but still worth to check). If there's not... I would definitely break the contract and move to the MBB offer. You just need to be aware that you will not have any chance to work for the tier 2 company anymore in your life, but I wouldn't perceive this as a big issue given you sign for top tier consulting firm

Best

Bruno

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Andrea gave the best answer

Andrea

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Former BCG Principal and decision round interviewer
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