Results 1 to 6 of 6
  1. #1
    Join Date
    Nov 2013
    Posts
    5

    Default When Do You Have to Repay a Relocation Bonus After Resigning

    My question involves labor and employment law for the state of: IL
    (I currently work in Arkansas, but the company is headquartered in IL.)

    I'm planning on resigning from a company I've been working with for a few months (5 months). The only document I ever signed was the initial offer letter, which stipulated that I pay back the joining bonus if I leave before 12 months, which is fair, and what I plan to do. However, in that document there is no mention of paying back the initial relocation reimbursements they gave me. I've checked other company documents for relocations, and they mention paying back relocation expenses if I leave before 12 months after a relocation. (The company has relocated me once since the original move, and I plan on paying back those expenses if needed.)

    My question is, if the company asks for the initial relocation expenses back, could I justifiably refuse them? As I said before, the initial offer letter is the only document I have ever signed, and it never stipulated that I need to repay relocation if I left before a year, only the bonus. The only other mention of the initial relocation I received was via e-mail, and that was simply the amount, with no terms or obligations attached.

    Second, I'm a bit confused by the wording of my contract (shown below). Does payment in lieu thereof mean that instead of giving 30 days notice, I could pay some penalty and leave immediately?

    Termination at will: This Contract may be terminated by either the Company or you
    without cause by serving a written notice of such termination 30 days prior to the date of
    termination or payment in lieu thereof. In the event of termination by the employee
    without notice or payment in lieu thereof, the Company shall be entitled to recover all
    costs and expenses incurred in enforcing this Contract including attorney’s fees and other
    reasonable expenditure
    Also, is the one month notice enforceable? I'm already paying back the bonus as stipulated, can they really do anything to me if I quit before the notice period is over?

  2. #2
    Join Date
    Aug 2013
    Posts
    284

    Default Re: When Do You Have to Repay a Relocation Bonus After Resigning

    It is going to be hard to get a clean answer here because there is a lack of specific law on the subject. The main federal labor law (FLSA) is mostly about minimum wage and overtime. Bonus payments (mostly) are not discussed at all, and so-called conditional wage payments also not discussed at all. Meaning what labor exists is mostly state law (assuming there is some actual state law on the subject).

    Lets flip the issue and pretend that you are the employer for the moment. They tell the employee to "give us money", and the employee refuses. If they still owe the employee money, they can try deducting their claim from that, although federal and state labor laws may have something to say about that. They can try taking the employee to court, which may or may not work. If there is an actual contract (according to the local state's rules), they can try a Contract Law remedy. Otherwise, they can use the letter you mentioned and try a Common Law remedy such as small claims court. I am not saying that they cannot win, but I do not like their chances, especially since they could have greatly improved their chances by structuring the payment(s) as a formal loan which would be conditionally forgiven. That law is a lot clearer then the law of conditional wage payments.

  3. #3
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: When Do You Have to Repay a Relocation Bonus After Resigning

    If an employer pays a bonus and wants to impose a condition on that bonus, there must be a contract through which the employee agrees to the condition. If there's no agreement to repay, it's game over for the employer. If the employer paid two separate bonuses, one clearly defined and understood as a "joining bonus" and another clearly defined and understood as a "relocation bonus", and the contract provides only for repayment of the "joining bonus" then that's all the employer can enforce.

    The thirty day notice provision seems a bit silly to me. An employer cannot force you to keep working after you quit, even if you don't give notice. In narrow contexts (e.g., professional sports contracts) the employer may be able to prevent you from working somewhere else for the duration of the contract, but for run-of-the-mill employees that's not going to happen. What, if anything, does the contract define as "payment in lieu" of 30 days notice?

  4. #4
    Join Date
    Nov 2013
    Posts
    5

    Default Re: When Do You Have to Repay a Relocation Bonus After Resigning

    That's what I thought, the only part that had me worried was the one below. It was so generally worded, that I wasn't sure if the company would be able to enforce any of its' guidelines, even those I hadn't explicitly signed off on the contract. Also, does that mean that the other relocation reimbursements need not be paid back? There is no contract associated with that them, and I haven't explicitly agreed to them in any form. The repayment for those is just written down in company documents.

    I have carefully read and understood the terms of this agreement /offer letter and accept

    the same unconditionally. I agree to be bound by rules and regulations of the company as may be

    amended from time to time.
    The contract doesn't define anything as "payment in lieu". And I'm very glad to hear that! So, even if I quit before/while the notice period occurs, the company wouldn't have any grounds to do anything to me? I wouldn't have to pay a penalty?

  5. #5
    Join Date
    Mar 2012
    Posts
    1,360

    Default Re: When Do You Have to Repay a Relocation Bonus After Resigning

    I don't think "payment in lieu" has much to do with what you might owe them, but more with what they owe you if they chose to let you go, not give you 30-days notice. They'd simply hand you a check for 30-days, and you'd be on your way.

  6. #6
    Join Date
    Nov 2013
    Posts
    5

    Default Re: When Do You Have to Repay a Relocation Bonus After Resigning

    Quote Quoting chyvan
    View Post
    I don't think "payment in lieu" has much to do with what you might owe them, but more with what they owe you if they chose to let you go, not give you 30-days notice. They'd simply hand you a check for 30-days, and you'd be on your way.
    I think I understand. And if I left before the 30 days, I assume they mean that they wouldn't pay me for the full 30, which makes sense.

    1. Sponsored Links
       

Similar Threads

  1. Resignation: When Do You Have to Repay a Prorated Sign-On Bonus
    By john8393 in forum Employment and Labor
    Replies: 4
    Last Post: 08-10-2013, 02:35 AM
  2. Compensation and Overtime: Employer Delayed Sign-on Bonus - Need I Repay
    By sam2011 in forum Employment and Labor
    Replies: 4
    Last Post: 06-28-2011, 03:26 PM
  3. Resignation: How to Not Repay Sign on Bonus
    By snkblls in forum Employment and Labor
    Replies: 2
    Last Post: 07-16-2010, 07:55 AM
  4. Expenses and Reimbursement: Requirement To Repay Relocation and Sign-On Bonus
    By scrapping1973 in forum Employment and Labor
    Replies: 3
    Last Post: 05-06-2007, 11:36 AM
  5. Resignation: If You Resign for Valid Reasons Do You Have to Repay a Signing Bonus
    By pureinherg in forum Employment and Labor
    Replies: 1
    Last Post: 02-27-2007, 12:35 PM
 
 
Sponsored Links

Legal Help, Information and Resources