Relocation Bonus feedback

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Latest post Sun, Apr 9 2017 8:38 AM by ClydesMom. 7 replies.
  • Fri, Apr 7 2017 11:14 AM

    • Jenk2168
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    Relocation Bonus feedback

    Hi.

    I received $35,000 bonus when I took a promotion and moved out of state.  The paperwork states if I leave before 24 month this is the payback:

    0-12 months $35,000

    13-24 months $17,500

    If I leave at month 22 will they enforce the $17,500 in your opinion or do you think it would be prorated negotiable?

     

  • Fri, Apr 7 2017 11:25 AM In reply to

    Re: Relocation Bonus feedback

    Jenk2168:
    If I leave at month 22 will they enforce the $17,500 in your opinion or do you think it would be prorated negotiable?

    Your post raises no legal issue, and we have no conceivable way of knowing what some unknown person or persons with an unknown employer will or won't do (and no, I'm not implying that you should identify your employer).  We could all say "yes" or "no," but that would be about as useful to you as flipping a coin.

  • Fri, Apr 7 2017 12:26 PM In reply to

    • Jenk2168
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    Re: Relocation Bonus feedback

    Well. I know it's not a legal brief but it's not that complicated of a question. If there is an attorney out there that was dealt with relocation bonuses should be able to give their OPINION on their experiences on what companies will pursue. 

  • Fri, Apr 7 2017 2:52 PM In reply to

    Re: Relocation Bonus feedback

    Jenk2168:
    it's not that complicated of a question.

    I agree.

     

    Jenk2168:
    If there is an attorney out there that was dealt with relocation bonuses should be able to give their OPINION on their experiences on what companies will pursue.

    Any such "opinion" would be nothing but a complete guess and will be as useful as flipping a coin.  Just because Employer X may have enforced a similar provision in similar circumstances has utterly no bearing on whether YOUR employer will enforce the provision.  Even if 100 out of 100 employers have chosen not to enforce similar provisions in similar circumstances, it has nothing at all to do with what YOUR employer will do.  Likewise, you could flip a coin 100 times, and it COULD come up heads every one of those 100 times, but that has no bearing whatsoever on the outcome of the 101st flip of the coin.

    The absolute most anyone here could tell you is what he or she would do under the circumstances described, but that wouldn't be useful either.

  • Fri, Apr 7 2017 3:24 PM In reply to

    • Drew
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    Re: Relocation Bonus feedback

    I can tell you hat long ago my boss that t called such shots would  NOT prorate it...people talk and bending would set an expectation for others ......I might suggest that you find some way to stretch your official departure date 1 day past the recovery date....I am aware of that sort of thing with no show duties ...

     

     



  • Sat, Apr 8 2017 5:14 AM In reply to

    Re: Relocation Bonus feedback

    Jenk2168:

    Well. I know it's not a legal brief but it's not that complicated of a question. If there is an attorney out there that was dealt with relocation bonuses should be able to give their OPINION on their experiences on what companies will pursue. 

    It is not a complicated question. But it depends entirely on (1) the exact terms of the agreement and which state’s law governs the agreement and (2) the attitude of the people running the company for whom you work. I don't have the information in (1) and I don't know the people in your employer's firm that would make the decision what to do should you leave before the two years are up.

    If I assume that the provision for repayment is enforceable and that nothing in the contract states it will be prorated then legally the employer could insist on repayment of the whole $17,500 if you left just one day before the 2 year term was up. Would your particular company do that? No one here can answer that because it would require knowing the people who make those decisions. Our guess would be no better than flipping a coin, as previous responses have indicated. As for my experience, I have seen situations in which a company went after the repayment when an employee left with just two weeks left to run, another in which an employee who had about a month left to go was not required to repay anything. I've also seen where they agreed to prorate it even though under the agreement it was not required. This illustrates why a simple yes or no answer does not work for this.

  • Sun, Apr 9 2017 7:48 AM In reply to

    • cbg
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    Re: Relocation Bonus feedback

    The odds are somewhere between 0 and 100% that they will pro-rate it.

    That is my opinion.

  • Sun, Apr 9 2017 8:38 AM In reply to

    Re: Relocation Bonus feedback

    Taxagent:
    But it depends entirely on (1) the exact terms of the agreement and which state’s law governs the agreement and (2) the attitude of the people running the company for whom you work.

    I will throw out a possible third and fourth factor:  WHY the employee is leaving and the budget.

    I worked for a company that had this type of relocation pay back clause in their agreements.  We had one employee that had to leave because a parent developed serious medical problems and needed the employee for long term care.  The employer did not ask for the repayment under the agreement.  However, the guy they hired that irritated the CRAP out of everyone he worked for and with was made to repay the full amount under the agreement when he left after 6 months.  

    If the money would be needed for the possible relocation package of the new hire to replace the departing employee then repayment would likely be sought.  If the budget is not strapped or there is no intention to replace the employee leaving then they may not seek it.  

    Too many factors to give a one size fits all answer on what they will do.

    "That's just my opinion, then again I might be wrong."  Dennis Miller

     

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