What is the name of your state (only U.S. law)? NY and MA
I was formerly employed by a company that relocated my myself and my family to NY state.
I have supplied the verbatim relocation agreement below and will supplement with my specific information here and am asking for opinions advice on how to deal with this situation:
Employment start date :3/24/08
On 4/23/09: Senior VP of department visits site and announces subsequent closure of site by 2010. No announcement is made on specific details of closing or whether employees at current site in NY will be offered employment and another site. In this month, HR and relocation is contacted to determine what this means in regards to my relocation repayment and no response is received.
On 6/15/09: A subsequent visit by senior managment details that they will be selecting specific emplyees to transfer and that this will be considered a severence eligible event for those not selected or those who decide not to accept position. Additioanlly, at this time I am visited specifically by the VP and told verbally I will be offred a position, but that this position will be in NJ which is approximately 350 miles from my current work location. I am asked to visit the site and make a determination of interest. In this month, HR and relocation is contacted to determine what this means in regards to my relocation repayment and am told that I would likely not be told to repay, but that they must look into it.
In July 2009: I have visted the NJ site and informa my management that I will not likely be pursuing any formal offer of employment there. In this month, HR and relocation is contacted to determine what this means in regards to my relocation repayment and I specifically ask that if there is to be repayment I should be notified else I will assume that they have determined it not necessary. I as not notified.
In August of 2009: Offered another position of employment with another company.
On Sept 1 2009 (last day of empoyment at the Company): Resigned my position of employment and accepted other offer.
Subsequently was asked to repay relocation funds in the amount of 50% of total
In November 2009: Remaining employees offered employment at other sites and given 45 days to accept or take severence.
Given this information, I felt at the time that the Company had sufficiently breached the terms of our agreement of which I had completed ~18/24 months of and I was therefore not liable for repayment as detailed in the agreement. At that time I detailed this to the employer including dates of contact and specific repsonses given and received via certified letter. No response was received. subsequent to this (April 2010) the employer has hired a debt collection agency to attempt to recoup the funds.
The terms of the relocation agreement are supplied here verbatim:
Upon acceptance of the relocation and before and relocation expenses can be incurred, you will be asked to sign this Relocation repayment agrment. This agreement requires repayment of relocation benefits according to the following schedule if you terminate your employment with the Company for any reason within 24 months of your start date, as applicable:
0-12 months = 100%
13-24 months =50%
You hereby agree and understand that you will owe the above percentage of relocation expenses to the Company and you hereby authorize the Company to recover the above funds from money not yet paid to you, but otherwise owed to you from the Company, including, but not limited to, salary, accrued vacation or other amounts, but excluding any amounts from retirement plans. In the event such monies are insufficient to recover the amounts set forth above, you agree to provide the Company the additional funds required for reimbursement prior to your official termination date.
By signing below, I acknowledge that I have read the NEW HIRE Guidline, and that I understand the terms, conditions and benefits outlined in the procedure and in this agrement. I further understand and agre that nothing in the agreement creates a contract or guarantee of employment between the Company and me for any period of time. I agree to refund the Company a prorated portion of any and all relocation advances, allowances, fees and reimbursements which were made to me or on my behalf in connection with my relocation and subsequent move, should I terminate for any reason within a 24-month period, based on the schedule set forth above. Repayment is due and payable to the Company within 60 days from the termination date.
Additionally, Attachment A is included in this agreement.
Repayment is due if termination occurs as a results of:
- Voluntary termination of employment;
-Willful misconduct or activity deemed detrimental to the interests of the company. This may include, but not limited to, the following acts: Acts involving dishonesty, violation of company policies (such as those related to alcool or drugs), violation of safety rules, disorderly conduct, discriminatory conduct, such as harrassment, unauthorized disclosure of company confidential information, or the entry of a plea of nolo contendere to, or the conviction of a crime;
- Willful failure or refusal to substantally perform your duties with the company (except where the failure results from incapacity due to disability); or;
-refusal to accept a transfer to a position (for which you are qualified by reason of training or experience) at a new work location that is less than 50 miles farther from your residence than your work location immediately prior to the proposed transfer.
In the event that all or part of the Company's assets are sold to a third-party, repayment is due if the employee is offered employment with the acquirer of such assets in connection with such sale and refuses employment. Notwithstanding the foregoing, if the conditions surrounding such offer of emplyment would be considered a severence eligible event under the Company's Severance Plan (eg, wouldrequire transfer to a new location that is more than 50 miles further from the employee's residence), repayment would not be due.
I was formerly employed by a company that relocated my myself and my family to NY state.
I have supplied the verbatim relocation agreement below and will supplement with my specific information here and am asking for opinions advice on how to deal with this situation:
Employment start date :3/24/08
On 4/23/09: Senior VP of department visits site and announces subsequent closure of site by 2010. No announcement is made on specific details of closing or whether employees at current site in NY will be offered employment and another site. In this month, HR and relocation is contacted to determine what this means in regards to my relocation repayment and no response is received.
On 6/15/09: A subsequent visit by senior managment details that they will be selecting specific emplyees to transfer and that this will be considered a severence eligible event for those not selected or those who decide not to accept position. Additioanlly, at this time I am visited specifically by the VP and told verbally I will be offred a position, but that this position will be in NJ which is approximately 350 miles from my current work location. I am asked to visit the site and make a determination of interest. In this month, HR and relocation is contacted to determine what this means in regards to my relocation repayment and am told that I would likely not be told to repay, but that they must look into it.
In July 2009: I have visted the NJ site and informa my management that I will not likely be pursuing any formal offer of employment there. In this month, HR and relocation is contacted to determine what this means in regards to my relocation repayment and I specifically ask that if there is to be repayment I should be notified else I will assume that they have determined it not necessary. I as not notified.
In August of 2009: Offered another position of employment with another company.
On Sept 1 2009 (last day of empoyment at the Company): Resigned my position of employment and accepted other offer.
Subsequently was asked to repay relocation funds in the amount of 50% of total
In November 2009: Remaining employees offered employment at other sites and given 45 days to accept or take severence.
Given this information, I felt at the time that the Company had sufficiently breached the terms of our agreement of which I had completed ~18/24 months of and I was therefore not liable for repayment as detailed in the agreement. At that time I detailed this to the employer including dates of contact and specific repsonses given and received via certified letter. No response was received. subsequent to this (April 2010) the employer has hired a debt collection agency to attempt to recoup the funds.
The terms of the relocation agreement are supplied here verbatim:
Upon acceptance of the relocation and before and relocation expenses can be incurred, you will be asked to sign this Relocation repayment agrment. This agreement requires repayment of relocation benefits according to the following schedule if you terminate your employment with the Company for any reason within 24 months of your start date, as applicable:
0-12 months = 100%
13-24 months =50%
You hereby agree and understand that you will owe the above percentage of relocation expenses to the Company and you hereby authorize the Company to recover the above funds from money not yet paid to you, but otherwise owed to you from the Company, including, but not limited to, salary, accrued vacation or other amounts, but excluding any amounts from retirement plans. In the event such monies are insufficient to recover the amounts set forth above, you agree to provide the Company the additional funds required for reimbursement prior to your official termination date.
By signing below, I acknowledge that I have read the NEW HIRE Guidline, and that I understand the terms, conditions and benefits outlined in the procedure and in this agrement. I further understand and agre that nothing in the agreement creates a contract or guarantee of employment between the Company and me for any period of time. I agree to refund the Company a prorated portion of any and all relocation advances, allowances, fees and reimbursements which were made to me or on my behalf in connection with my relocation and subsequent move, should I terminate for any reason within a 24-month period, based on the schedule set forth above. Repayment is due and payable to the Company within 60 days from the termination date.
Additionally, Attachment A is included in this agreement.
Repayment is due if termination occurs as a results of:
- Voluntary termination of employment;
-Willful misconduct or activity deemed detrimental to the interests of the company. This may include, but not limited to, the following acts: Acts involving dishonesty, violation of company policies (such as those related to alcool or drugs), violation of safety rules, disorderly conduct, discriminatory conduct, such as harrassment, unauthorized disclosure of company confidential information, or the entry of a plea of nolo contendere to, or the conviction of a crime;
- Willful failure or refusal to substantally perform your duties with the company (except where the failure results from incapacity due to disability); or;
-refusal to accept a transfer to a position (for which you are qualified by reason of training or experience) at a new work location that is less than 50 miles farther from your residence than your work location immediately prior to the proposed transfer.
In the event that all or part of the Company's assets are sold to a third-party, repayment is due if the employee is offered employment with the acquirer of such assets in connection with such sale and refuses employment. Notwithstanding the foregoing, if the conditions surrounding such offer of emplyment would be considered a severence eligible event under the Company's Severance Plan (eg, wouldrequire transfer to a new location that is more than 50 miles further from the employee's residence), repayment would not be due.