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Does a Relocation Repayment Agreement Remain Valid if Employer is Sold

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  • 10-26-2011, 03:24 PM
    chem3
    Does a Relocation Repayment Agreement Remain Valid if Employer is Sold
    My question involves labor and employment law for the state of: IL
    I relocated with Sara Lee and signed a relocation agreement that agrees to repay relocation cost if I terminate employment within 24 months. Recently, Sara Lee sold thier fresh bakery business (including me) to BBU. In two weeks I become a BBU employee. Is my agreement with Sara Lee void or does it transfer to BBU? Can BBU make me repay if I leave my job?
  • 10-26-2011, 04:33 PM
    Law Firm Business Manager
    Re: Relocation Agreement - Sold to a Different Company
    Interesting question and there may be too many unknown legal issues related to the sale from Company A to Company B to get a definitive answer here.

    Question 1: Presumably you have a copy of the signed relocation agreement - does it address this issue? The wording of that agreement may be important, especially if it rises to the level of an employment agreement. Obviously, we can't read the agreement from here.

    Question 2: Is your employment with Sara Lee being terminated and are you being hired as a new employee of BBU? I'm assuming your relocation agreement required you to repay those costs in your voluntarily terminated employment. If that is the case and if Sara Lee terminates your employment, I would lean towards your not having to repay the relocation cost provided you don't quit before Sara Lee terminates you.

    Question 3: Is BBU retaining your seniority, benefits, etc. from your original hire date with Sara Lee? If they are assuming all former Sara Lee obligations to you, it may very well be that your repayment obligation continues.

    I'm not an expert on Illinois law; someone else may have more definitive info but this may very well be a "consult a contracts lawyer" situation.
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