Bonus/Relocation cost agreements

I was hired 4 and 1/2 months ago by a major financial services company based in PA. I accepted an offer to work at the Scottsdale, AZ office location that included a bonus and relocation expenses. I signed an offer letter stating that I had to repay the bonus if I left the company for any reason before one year. I also signed a relocation agreement stating that I must repay relo. costs if I left before two years.

The company has now decided to move my department back to the PA headquarters, and is offering me: 1) a different position in AZ; 2) relocation to the PA office in a new position. The position I was hired for is not being offered to me.

Question: If I elect to leave the company now, will I be obliged to pay back the bonus and/or relocation costs?

1 answer  |  asked Jul 26, 2001 12:06 PM [EST]  |  applies to Arizona

Answers (1)

Francis Fanning
Relocation payback

To determine whether you would be obligated to return the relocation costs or bonus, I would need to review the entire package of documents involved. In order to be excused from your obligation under the agreement, you would need to argue that the company breached its obligation to you. If it did not promise you continued employment for a given period of time in the position you were offered, the company may not be in breach, and you would not have an excuse for leaving. Other issues might arise from a review of the documents or the circumstances. Have an attorney discuss the entire situation with you before making a decision to leave.

posted by Francis Fanning  |  Jul 26, 2001 2:55 PM [EST]

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