Payback of Relocation Expenses

The company I currently work for has been bought out by another company. My department has been informed that our jobs are being eliminated in our current location but we may bid on similar jobs in two other locations (requiring a relocation). I myself had a intra-company relocation to this office 18 months ago. At the time I relocated, I signed an agreement that specified that if I were to leave the company within 0-12 months I would owe 100% of my relo benefit; that number dropped to 50% during the 13-24 month period. Since my job is being eliminated, I have found another position outside of the company. The company is now telling me that I will have to pay back 50% of my relo benefit ($26K) since I have only fulfilled 18 months of the contract. My question is this...Can they hold me to that contract since my job is being eliminated and they can make no guarantees that I will have another job within the company? The other twist is that if I were to stay until the day they close this office, I will be paid a "stay" bonus, plus severance, that will total somewhere near $45K, so they will be saving money by letting me go now.

I need more information to help you out. First, the relo contract you signed, does it specify the reason you may leave such that the payback kicks in? In other words, does it say that if the company downsizes, then you will not owe us any money? I need to know the exact wording of the contract.

Second, why can't you stay until the company closes the doors? Don't go to that new job outside of the company. Stay put and get some money without having to pay back anything. If you stay, anything that you may have to pay back can just come out of the severance pay.

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Mark B. Replogle