[Zackpasses]

So its been a tough week. I found out on the 9th that I failed the last part of the exam by one point and I found out yesterday that my company is centralizing the finance group and eliminating all field positions (which includes my own). Should we wish to relocate, we can put in for one of 30 positions (of which I could qualify for approx 8), and hope we get one of the empty spots.

It is not all bad news. The finance team was given this news and the date of severance for my group isn’t until December. The company has committed to telling us by May if we will be one of the ones chosen for the jobs at the centralized location. That gives me some time to get my ducks in a row so to speak. Now the bad part is I signed a relocation agreement approximately a year and three months ago that expires around December. The terms of the relocation was to make a two year commitment to the site and that I was to be considered a local hire. The significance of this point is that I was not part of the rotational program and committed to staying in this area long term. As of today, the company intends to hold me liable to the agreement which would mean that if I left prior to December for a new job I would owe 20k.

The worst part is that December is an awful time to try to find work. The paltry severance that the company is issuing most likely will not see me through my job search if I were to be let go in December. I guess my question is this… Did the company materially change the terms of our contract and if so does that absolve me from liability for the agreement? I have read and reread the agreement and the company explicitly says that voluntary termination or termination for cause prior to the date of the agreement will result in repayment of the relocation.

I know that I am biased, but it seems like what I signed, and what is occurring are no longer the same thing. I am currently negotiating this with human resources but I won’t find out any outcomes until next week at the earliest. I think they are running this by their legal team. Ideally, I would stay on with the company and look to put applications out in the late August, early September time frame. I figure most job searches will take several months so I would like to have the flexibility to start looking before December without worrying about incurring this 20k relo agreement.

I am just looking for some objective opinions. Thanks everyone!

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[Missy]

I'd run it by a lawyer. Usually they'll do a consult for free. Also you'd likely be eligible for unemployment after your severance runs out if it's any comfort to you.

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[Zackpasses]

thanks for the response mla11692! Yeah, I thought about unemployment… I'd like to avoid that if possible. But I would also like to avoid dipping into my savings.

I've never contacted a lawyer before. Do you think it is best to reach out to a contract lawyer? Or any practitioner should be able to help?

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[Missy]

You've got some time, see what their legal staff comes up with. You may even have more time than you think right now, even though they plan this move around December stuff happens (if they're building/renovating the new location there can be delays, red tape, etc) After they respond I'd try someone who specializes in employment law.

Don't resist unemployment, you shouldn't have to dip into your savings. If worst comes to worst and you find yourself severed, they paid insurance premiums to cover your claim. It's a perfect narrative to a potential employers that your job moved and you chose to stick it out and work for them as long as possible.

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[fivehurdles]

Not sure what the lawyers would say but I would have the discussion. Holding you to the agreement given the fact that they are centralizing your position is unconscionable. I would plan an exit from your company just based on that.

One thing to think about is if you found a position in the next couple of months, it would cost your company less to let you leave than shake you down for your relocation package. I'm thinking six or seven months salary plus severance versus the 20K relo amount. That might be a negotiating point for you.

I've worked for some great companies, and a couple of scummy ones. My thought is that if they are holding you to your agreement given the new circumstances, they really aren't concerned about the well-being of any employee. Your a position–not a person. Any opportunity to save a few bucks by letting some folks go prior to December could be in play…

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[Zackpasses]

Thanks again for the responses! @fivehurdles – i totally agree with you. It is strange because the company I work for preaches “family values” and “lives” by them. I hope that HR comes back and lets me know that I am out of the agreement, or works terms that are favorable to me and the company. Either way, I wouldn't plan on putting my resume out until I have the CPA behind me. I am hoping that I will pass next window and can add that as one more element to make my resume shine a little more.

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[jm962011]

Zack, I would just say please don't wait to put your resume out there. A job search is a process and can take a very long time. If there are other individuals in your market with the same or similar skills who are going to be affected by your current employer, that means they'll be looking to and the market may become saturated.

I know December seems like a long ways off and you might not be able to get out of the agreement, but let's say you find a job in October. That employer may be flexible and be willing to wait until January 1st for you to start. Hiring around the holidays and being the new person around the holidays can be difficult.. it'll seem like a lot of people are out of the office but you have to hang around because your PTO is built up yet.

[Zackpasses]

Jm I appreciate your perspective. It isn't a bad idea to try to negotiate my start time if I was able to find something in the fall. Ideally I would like to to start searching sooner rather than later but I just need to get this relo agreement worked out of the way (hopefully very amicably) before I can make any moves. I also would like to be licensed before I start my search. So if all goes well I would think that would be the May or June time frame. I was able to make an appointment with our vice president of Finance for a one on one and I plan to ask him directly about the relocation. The stance they are taking as of today seems to contradict their own values.

Fingers crossed I will hear some good news next week!

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[Anonymous]

If I understand this situation correctly, the company will announce in May who will have a job in the main office in 2017. The employees in the field offices who don't get one of those 30 central positions can keep working in their field office through December 2016. Nine months from now.

It sucks for the people who won't get to stay with the company into 2017 but honestly that sounds a lot better than many other layoffs and reorganizations I know about. I have friends who got anywhere from six weeks notice, all the way down to immediate layoffs with two weeks severance pay in lieu of notice. Seven months notice from 5/2016 to 12/2016 is very accommodating and gives the affected employees a lot of time to find new positions.

It's up to you whether you want to apply for one of the 30 central jobs, stay in the field office through December to satisfy your obligation for the money the company spent to relocate you, or leave before your two year committment ends.

[sdguy]

If they lay you off in May, they can't hold you to your contract until December. You can't lay someone off 7 months from now and expect them to stay. No judge would enforce that. Good luck to the company trying to win that legal battle. You're a human being, not a slave.
Any good lawyer would back you on that, as would a mediator if it went that route, or even your state employment board.

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[Missy]

sdguy don't be so sure. MORALLY what you're saying is 100% spot on and I agree. LEGALLY however, different can of worms and without any of us seeing the actual contract (and passing the bar) none of us can assure the OP whether it is or is not enforceable. If a company is loaning $20k (exceptionally generous for relocation by the way) will a court make them forgive it entirely due to the circumstances, we can't say.

The relocation bonus sounds like it is being treated as a loan, which will be forgiven entirely upon meeting certain criteria. The signed contract specifically states repayment in the event of voluntary termination. If a job is guaranteed through 12/16 and the employee chooses to leave before then, will a court consider the termination voluntary? It is possible.

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[Anonymous]

I think if the layoffs happened in May, the OP's chances in court would be significantly higher than with notice of the layoffs happening in May, and the actual layoffs happening in December. With the actual layoff in December, that means that the OP had the opportunity to work out the term of the agreement (no more, but the term itself), and if the OP leaves prior to that date it's a voluntary choice.

Granted, it would be nice of the employer to release the OP or agree to pro-rating or something like that. (Say, OP pays back $1,000 for each month before Dec that OP leaves.) However, legal agreements and “it'd be nice” often don't have much in common.

[FIFOisbetterthanLIFO]

It is very likely that the terms have changed. Obviously, no one can say without seeing the contract, but if you pay to relocate to one area and then they later say oh sorry we really want you to move somewhere else, something tells me the terms of the contract likely changed and that the OP will be able to get out. If for some reason it is written into the contract that you could potentially relocate multiple times and to anywhere the company says, well then that's the OPs fault for signing something like that.

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[sdguy]

No judge would enforce it. This would be viewed as compensation / signing bonus, not a loan. We can't say for sure without seeing the contract , but you can't stand in the way of someone earning a living.

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[Anonymous]

What judge? Where I work, they would just send it to a collection agency after 45 days.

[Author]

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