My current university has a clause in our contracts that states that we have to pay a percentage of our annual salary if we terminate the contract early. The percentage is quite large and I was wondering if anyone has had any experience with this or knows how enforceable that payment is. Could it be paid in installments?

  • 1
    This is probably a question you have to ask at the university. I've never heard of it, but if it exists several places then it is probably defined only locally. We can't give legal advice here, but generally speaking, contracts are enforceable. And, of course, the law varies from place to place. Ask someone in the financial office of your university.
    – Buffy
    Jul 14, 2019 at 23:46
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    I've never heard of something quite like this, but generally such laws are defined per jurisdiction. Employment contract law is a very complicated issue, so if it is not a trivial amount of money I would consult a lawyer to ensure you are interpreting it right and if it is valid. For instance, it could be that the contract is for 12 months of work, and so it actually says if you leave in the 11th month then you aren't entitled to the last month of pay (as a made up example).
    – BrianH
    Jul 15, 2019 at 0:08
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    As authors have commented, this is a legal matter and depends on the details of the contract and the law in your jurisdiction. No answer to this question could possibly generalize to other contracts, other institutions, or other jurisdictions. Jul 15, 2019 at 1:12
  • 2
    I'd suggest you do NOT ask your university's staff, as they work for the university, not for you, and must protect the university's interests. Jul 15, 2019 at 1:26


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