Are Relocation Repayment Agreements Enforceable

Arouh: “These agreements are more often used in companies and sectors with high fluctuation rates” – those where workers do not hesitate to leave jobs for more demanding or better-paying jobs. These sectors, he says, include high technology, science, aerospace and communications. A refund contract is a legally enforceable document that generally states that the employee agrees to reimburse the moving costs paid by the company on his behalf, if the employee voluntarily resigns or if he is terminated by the company for a specified period. Some reimbursement agreements apply only to withdrawals and omissions of redundancies for reasons that have not been explained in their dreams. The reason is that if the company has wisely chosen its talents, there should be no layoffs “for reasons”. According to lawyer Jeffrey Arouh, a partner at Holland-Knight LLP in New York, whose practice includes corporate and employee transfer cases, most amortization agreements involve a transitional reduction in the amount the employee must repay. Amortization clauses usually cover the first year of relocation, sometimes the first 18 or 24 months, “but I haven`t seen anything more than that,” he says. The aim, of course, is to prevent the policy from ever being implemented. Snodgrass says that experience shows that “you can limit a lot of pain, torment and potential errors during relocations that would otherwise occur if you manage to a well thought out process upstream. … Think ahead about possible movements and do so in a thoughtful and sophisticated way by involving the employee in the process.

Each company must decide for itself the value of a depreciation contract, says Snodgrass. “They need to do what they think is right and right in their organization to adapt their culture, achieve their financial goals and achieve their personnel transfer goals.” Implementation. “From a practical point of view, it is extremely important for companies that have these agreements to monitor and implement them in a consistent and consistent way within the staff,” says Arouh. Here`s what you should think before signing this moving contract: Thus, the employee fully understands the terms of the moving package before formally adopting the position/relocation, the refund contract should be part of the relocation policy and be included in the job offer letter. It is also important to stop launching moving services until the signed contract is concluded with the company. In particular, say relocation experts, make sure that any depreciation policy you pursue is clearly communicated to employees and that it is applied and applied consistently. However, some companies decide not to enter into repayment agreements, fearing that they will turn against them. Jim Schriner, who heads the New York-based firm of Deloitte`s Fantus Corporate Real Estate Solutions, says the companies he works with are constantly looking for ways to encourage employees to relocate and are waiving depreciation provisions because they could be considered “deterrents.” Second, there is no right to employment in “work at will” – the country`s employment law. Your employer does not need to employ you or make your job a reasonable or rewarding job. On the contrary, they can treat you as they wish, and work can be excessively stressful and destructive to your quality of life, and it`s quite legal.