What to do about termination and repaymanet of relocation expenses?

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What to do about termination and repaymanet of relocation expenses?

I signed a contract 6 months ago when I was hired. It stated that I have to work for 1 year, and if I quit early, I have to repay the relocation fees. If I give a 6 month notice and they let me go before my year is up, would I still have to pay those fees?

Asked on May 16, 2012 under Employment Labor Law, Kentucky

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

There is a good chance you would have to pay those fees. In the first place, they could possibly treat your notice as a resignation--an indication that you are leaving their employment--effective immediately; there is no law requiring that employers honor notice, so they could focus on the resignation, not the notice period. Second, they could arguably consider that you intended all along to use them to just pay for your relocation and signed the agreement and took the job under false pretenses (fraud). In either event, they could release you immediately and require you to repay the expenses. You would almost certainly be better served by working a bit past the one year mark, then providing notice of resignation.


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