If myemployer was bought and is moving to another state, do I still have to pay back relocation expensesif I leave the company?

UPDATED: Jul 13, 2011

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If myemployer was bought and is moving to another state, do I still have to pay back relocation expensesif I leave the company?

I signed a relocation agreement with a company to pay back all relocation expenses if I left within first 2 years of employment. The company was sold in first month I started and is moving their location to another state. Can I voluntarily leave the company now without having to pay back any relocation? Do I need to wait until they give me an end date? Is contract I signed void?

Asked on July 13, 2011 under Employment Labor Law, Illinois


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

1) The contract is probably not void--generally, when a company buys another, it buys that company subject to existing contracts and obligations. That's not to say that it *can't* be void--it's possible, for example, to buy a company's assets without taking over contracts or buying the company (i.e. the corporation or LLC) itself--but it's more likely that the contract is still in force.

2) For a definitive answer, you need to carefully read the terms of the contract/agreement itself--those terms will control. If you're in doubt, have a lawyer help you. Usually in agreements like this, if you leave voluntarily--even if you know that the business will be closing, moving, etc. in the near future--you have violated the agreement and repay the relocation expenses. You may need to wait until the company officially moves and discontinues your employment at this location, which would be termination or, even if they offered to relocate you again, constructive termination. If/when the company ends the relationship, then the employee usually does not need to repay; but again, you should review the contract and ideally consult with an attorney to be sure.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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