Long story short, the city and job is not what I expected and looking to move back. I’m miserable here. The problem is that my offer letter states something along the lines of “If I quit within the first year of employement I will be responsible to repay relocation costs” due on my last day, this totals ~20k and includes tax benefits (tax gross up). Is this considered a legal contract even if it is on my signed offer letter? How likely are they to come after me, would it just go to a collections agency? Looking to hear from those who have been in similar situations or can provide better insight. thank you.
Having said that.. grow up.. and own the repercussions of your decisions and survive the one year and then move.
I agree with the thought of owning up to decisions made but if there’s an option to leave then why go through it.
We had this happen and we recouped the relo money (person left after 3 months) How far are you into your first year?
Yes, a signed offer letter is the acceptance of a contract. Coming after you would depend on the company and how likely they are to get their money back. They could file the unpaid debt with the credit bureaus and turn it over to a collections agency. Or, sell the debt to someone else that could. You should really talk to your attorney before making a decision.
Options: Unless you can show the company enticed you into a position, other than the one described than you applied for or made false enticements in writing about workspace or benefits, you are on the hook. If they fire you or lay you off you don't have to repay it so long as you don't violate conduct requirements. So you can phone it in for 7 more months, taking as much sick leave as possible and maybe they'll let you go. It's unusual for fees to be due on last day of work -- so they could garnish your last paycheck and any unused vacation time and bill you for the rest - technically you have 90 days until collections. Your other option is to find another job, leave after a paycheck is fully issued and processed thru ACH so it can't be pulled back and give short notice if you can afford to burn the bridge. You can let HR know when finally necessary and tell them A/R can bill you and garnish whatever in on your last partial paycheck. What you have to decide is: what are your other prospects, is it you getting in the way of your own happiness in this new place even if it is different, and can you afford to burn the connection.
@AlZu I honestly wouldn’t care to lose that last paycheck if it means I’m off the hook for the 20k. But there’s no way of knowing and there’s a good chance they’ll go after it from everyone’s comments here. I technically have another offer on the table from my last employer (not official yet) but I’m wondering if they’ll be willing to front those costs.. I may give that a try if not I have no other option than to wait it out. Thanks for the comment.
Hey @OP. Unless you are amaze-balls Emily Post would probably advise you not to bring up your relocation cost woes to a new employer. That's what I advise. Now I understand why that stupid word "adulting" exists. I'm suggesting you use a quick exit to plug a gap and arrange 90 day repayment. If you need to get a temporary loan then that's better than damaging your credit or your reputation.
All of this advice is extremely dumb. I know a few people who were in this situation. One left and was sent multiple demand letters but 3 years later, nothing ever happened. No collections etc. It was even sent via signature mail with FedEx. The second person talked to HR and said they were miserable and wanted to leave but didn’t have the money to repay and the salary in their low COL hometown would not allow them to repay. HR made them sign something that said they wouldn’t speak poorly of the company and they didn’t have to repay it. Just talk to HR if you’re that nervous.
This is what I suspected, thanks for providing insight based on actual experience.
No one will sue you for just 20k. Might go to collection agency is employer is cheap like IBM India. Collection agency won't be able to ruin your credit rating as this isn't a loan that you didn't repay.
Thanks for the feedback. It’s just that everything I read online about this make it sound like most of times they go after the money.
Also it would suck if I decide to leave and they do go after it.. 😩