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Salary Penalty from previous employer. What can I do?

I am about to sign a contract with a tier 2 consulting firm in the Middle East. However, I recently discovered that if I leave my current job before completing two years under the contract, I will be required to pay a penalty equivalent to two months' salary. Is it appropriate and/or common for me to ask my new employer (the tier 2 consulting firm) if they would be willing to cover these costs on my behalf?

 By the way, I have tried already to negotiate the office location within the Middle East and I was unsuccessful. Thanks!

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Top answer
Alberto
Coach
on Oct 02, 2023
Ex-McKinsey Associate Partner | MBB Coach | 95% success rate | +13 yrs in consulting | +2,000 real interviews in 3 firms

Hi there,

I definitely recommend you try to negotiate this. When I joined PwC, they gave me an extra signing bonus to cover penalty from previous employer.

Good luck!

Alberto

Ian
Coach
on Oct 01, 2023
Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success

Hi there,

Yes, this is absolutely a fair negotiation tactic - essentially, it can justify a signing bonus (or an increased one).

By the way, it's *possible* current tier 2 firm may not remember/think to claw back the 2 months' salary. It has happened to me…so, you *might* be ok (but, of course, don't count on it!)

on Oct 01, 2023
Ex-BCG Principal | 8+ years consulting experience in SEA | BCG top interviewer & top performer

Hi,

No harm asking politely on whether this will be possible. Sometimes it happens, sometimes it doesnt - it really is the firm's call and also driven by how much leverage you have. I have heard similar things happening but normally for more senior levels.

All the best!

on Oct 01, 2023
ex A. Partner McKinsey |Senior Interviewer| Real Feedback & Free Homework between sessions|Harvard Coach|10+ Experience

Certainly, you can negotiate with your new employer regarding covering the penalty for leaving your current job early. During negotiations, emphasize your value to the firm and be open to compromise if needed. Document any agreements in writing within your employment contract. For specific advice tailored to your situation, consider consulting with a legal professional.

Warm regards,
Frederic
PS: I am advising government entities in the Middle East and am available for further discussions if you'd like to chat.

on Oct 01, 2023
#1 rated McKinsey Coach

Hi there!

Sorry to hear. 

It would be rather unusual for the new employer to cover these costs, but not impossible. 

Basically, I would discuss this with the new employer and tell them that you were made aware of this clause in your past contract and ask them whether they could either cover the costs of the penalty or be willing to defer your entry date so you actually finish two years with your current employer. 

They should be able to accommodate at least the second option if it just means pushing the start date by a couple of months.

Best,
Cristian

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on Oct 02, 2023
#1 Coach for Sessions (4.500+) | 1.500+ 5-Star Reviews | Proven Success: ➡ interviewoffers.com | Ex BCG | 10Y+ Coaching

Hi there,

Congratulations on the offer! In terms of your question:

Q: Is it appropriate and/or common for me to ask my new employer (the tier 2 consulting firm) if they would be willing to cover these costs on my behalf?

You can definitely ask if there is any option for them to help, given that it is a cost related to transitioning to the new firm. However, there is no guarantee they will agree to that.

If they cannot cover the costs, you might ask if they could defer the starting period so that you reach the 2-year mark, in case it makes sense given your goals.

Best,

Francesco

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