Do I need to pay back relocation expenses if I was asked to resign?

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Do I need to pay back relocation expenses if I was asked to resign?

My employment contract states that, “If for any extenuating reason I decide to leave the company before 2 years I will need to pay back all relocation expenses (e.g. 4 weeks hotel, shipping costs, airfare for self and family” which adds up to quite a lot of money. Last week my manager asked me to resign. I have worked for this company for 1.5 years. Does this mean I need to pay back these costs or because they asked me to resign then this clause is now moot?

Asked on February 5, 2012 under Employment Labor Law, New York

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

From what you have written here it seems that this section of your employment contract really deals with a voluntary resignation on your part.  Here is the catch 22: they did not fire you; they asked you to resign.  If the resignation does not state that it is not voluntary and that the clause seeking reimbursement of the expenses is void under the circumstances you could be held liable. Please go and seek legal help. Someone needs to read this contract and advise you.  Good luck.


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