Repaying Costs Associated With Recruitment Agency: Company making me pay $11000 upon my resignation because I did not meet the 2 year requirement.
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Repaying Costs Associated With Recruitment Agency: Company making me pay $11000 upon my resignation because I did not meet the 2 year requirement.
I recently gave 2-week’s notice to my employer. After talking to HR, I was informed I owed $11000 for my “placement and relocation”. I was AWAREI had to repay the relocation cost of $2000 but was UNAWARE of the recruiting cost. The original contract states “If you voluntarily leave the company within 24 months you will be responsible for repaying a pro-rated portion of the costs associated with your placement and relocation.” I did not seek a recruiter, he contacted me after finding my resume online. I was never given the dollar value of my “placement”. Is this legal?
Asked on June 25, 2009 under Employment Labor Law, Tennessee
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 15 years ago | Contributor
If you signed a contract indicating that you would repay a pro rata portion of the costs, it is legal. You had the option of requesting to see what those costs would be before you signed the contract, and either turning down the placement and relocation or trying to bargain the amount down.
Note that if you were not presented with the contract until AFTER you had already accepted the job and been relocated, you might be able to challenge it successfully; if you'd already taken the job and moved without any conditions or repayment terms, your company could not retroactively change the "bargain" between you. However, if you signed it prior to the relocation, it would be binding. You can at least ask to see the original bills, so you can do your own calculation that they are being pro rated accurately; and if the bills are much higher than normal relocation or recruitment, you could probably fight them on the grounds that the costs are excessive and at least push them down.
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