Go Back  British Expats > Living & Moving Abroad > USA > The Trailer Park
Reload this Page >

Paying back company relocation fees

Paying back company relocation fees

Old Jan 3rd 2009, 7:58 am
  #1  
Richard & Nikki
Thread Starter
 
dickchap's Avatar
 
Joined: Jan 2005
Location: Mackay
Posts: 264
dickchap is a name known to alldickchap is a name known to alldickchap is a name known to alldickchap is a name known to alldickchap is a name known to alldickchap is a name known to alldickchap is a name known to alldickchap is a name known to alldickchap is a name known to alldickchap is a name known to alldickchap is a name known to all
Default Paying back company relocation fees

Myself and the family are planning to move back to the UK in October after being in Australia for 1 year. I have a 4 year sponsored 457 visa and under my terms of contract i have to pay back a percentage of the fees that my company spent on us to move out here. After a year i only have to pay back 50% of the fee/ We were going to do 2 years and then go back meaning that i wouldn't have to pay the company anything back, but we can't wait that long so i'm prepared to pay the 50% as mentioned.

Has anyone else been in the same situation where they have had to pay back some money. If so, have they asked for you to pay the relocation costs in full or have they been nice and accepted a monthly payment?

Richard
dickchap is offline  
Old Jan 3rd 2009, 8:38 am
  #2  
BE Enthusiast
 
Joined: Jun 2008
Posts: 912
backagen has a reputation beyond reputebackagen has a reputation beyond reputebackagen has a reputation beyond reputebackagen has a reputation beyond reputebackagen has a reputation beyond reputebackagen has a reputation beyond reputebackagen has a reputation beyond reputebackagen has a reputation beyond reputebackagen has a reputation beyond reputebackagen has a reputation beyond reputebackagen has a reputation beyond repute
Default Re: Paying back company relocation fees

I honestly think that would be a very individual thing between you and the company concerned.

I don't think there is a "normal practise" or protocal here because it is entirely up to each company whether they decide to offer relocation costs, and if so whether they include a clause on repaying them in whatever circumstances.

I would just start by explaining your situation to the relevant person (your line manager or HR manager probably) and just be upfront and tell them you would have some difficulty repaying it all in one go and suggest you pay it back over a few months. See what they say.
backagen is offline  
Old Jan 3rd 2009, 4:00 pm
  #3  
JAJ
Retired
 
JAJ's Avatar
 
Joined: Apr 2004
Posts: 34,649
JAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond repute
Default Re: Paying back company relocation fees

Also discuss with an employment lawyer as the courts don't like unreasonable repayment terms.
JAJ is offline  
Old Jan 4th 2009, 7:40 am
  #4  
BE Enthusiast
 
Joined: Feb 2006
Location: UK to Sydney Feb 06
Posts: 738
TillyG is a glorious beacon of lightTillyG is a glorious beacon of lightTillyG is a glorious beacon of lightTillyG is a glorious beacon of lightTillyG is a glorious beacon of lightTillyG is a glorious beacon of lightTillyG is a glorious beacon of lightTillyG is a glorious beacon of lightTillyG is a glorious beacon of lightTillyG is a glorious beacon of lightTillyG is a glorious beacon of light
Default Re: Paying back company relocation fees

If you have the money readily available, then I would just pay it off and cut all ties in one fell swoop.

If you haven't got the money, then talk to your company and see what they say. They might agree to a repayment schedule but I would personally assume that they won't and that they'll want the money in one go - as once you've skipped the country, how are they to know that you're going to honour the rest of the debt.

T
TillyG is offline  
Old Jan 4th 2009, 8:37 am
  #5  
BE Enthusiast
 
Joined: Mar 2008
Location: all over the place
Posts: 759
MrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond repute
Default Re: Paying back company relocation fees

I would speak to them anyway - you never know you might be lucky...

if they are anything like the middle east they will come and chase you down - bstards! (might take a fair few years....)
MrsHaps is offline  
Old Jan 4th 2009, 9:13 am
  #6  
 
Joined: Feb 2005
Posts: 629
ShozInOz is an unknown quantity at this point
Default Re: Paying back company relocation fees

They will expect the money back in one go. BUT (this is important) you can have it taken from your GROSS salary. If you still owed them anything, then you'd have to repay this. This is completely legal. Make sure they know to take it from your gross salary and give enough notice, but not too much as some companies will exploit this and finish you early (i.e. a month after your written notice).
ShozInOz is offline  
Old Jan 5th 2009, 11:36 pm
  #7  
Forum Regular
 
martin1978's Avatar
 
Joined: Mar 2008
Location: Meadowbank, Sydney
Posts: 287
martin1978 has much to be proud ofmartin1978 has much to be proud ofmartin1978 has much to be proud ofmartin1978 has much to be proud ofmartin1978 has much to be proud ofmartin1978 has much to be proud ofmartin1978 has much to be proud ofmartin1978 has much to be proud ofmartin1978 has much to be proud ofmartin1978 has much to be proud ofmartin1978 has much to be proud of
Default Re: Paying back company relocation fees

Maybe this is going to sound obvious but find a way of getting yourself sacked for something other than gross misconduct. That way they will break the contract leaving you with no fees to pay, a months wages and a flight back to the UK.

Alternatively if you are not planning on coming back to oz just skip as the company have no legal durestriction in the UK to reclaim the money from you. DO NOT DO THIS IF THERE IS THE POSSIBILITY OF YOU RETURNING TO LIVE IN OZ IN THE NEXT 7 YEARS.
martin1978 is offline  
Old Jan 5th 2009, 11:52 pm
  #8  
BE Enthusiast
 
Joined: Mar 2008
Location: all over the place
Posts: 759
MrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond repute
Default Re: Paying back company relocation fees

[QUOTE=martin1978;7130538]Maybe this is going to sound obvious but find a way of getting yourself sacked for something other than gross misconduct. That way they will break the contract leaving you with no fees to pay, a months wages and a flight back to the UK.

QUOTE]

Ooooooh i was going to suggest this - it is completely the sort of right thing to do if you want to get out of paying back! Not the most honest thing to do but still..... if you didnt need a ref from them.....!
MrsHaps is offline  
Old Jan 5th 2009, 11:57 pm
  #9  
BE Forum Addict
 
hitchcock71's Avatar
 
Joined: Jan 2007
Location: yangebup perth au
Posts: 2,505
hitchcock71 has a reputation beyond reputehitchcock71 has a reputation beyond reputehitchcock71 has a reputation beyond reputehitchcock71 has a reputation beyond reputehitchcock71 has a reputation beyond reputehitchcock71 has a reputation beyond reputehitchcock71 has a reputation beyond reputehitchcock71 has a reputation beyond reputehitchcock71 has a reputation beyond reputehitchcock71 has a reputation beyond reputehitchcock71 has a reputation beyond repute
Default Re: Paying back company relocation fees

Originally Posted by martin1978 View Post
Maybe this is going to sound obvious but find a way of getting yourself sacked for something other than gross misconduct. That way they will break the contract leaving you with no fees to pay, a months wages and a flight back to the UK.are you joking!
Alternatively if you are not planning on coming back to oz just skip as the company have no legal durestriction in the UK to reclaim the money from you.you should never do this DO NOT DO THIS IF THERE IS THE POSSIBILITY OF YOU RETURNING TO LIVE IN OZ IN THE NEXT 7 YEARS.
if you signed a contract saying you would pay it back then you should do .speak to your company - ask how they want the money paid back
hitchcock71 is offline  
Old Jan 5th 2009, 11:59 pm
  #10  
BE Enthusiast
 
Joined: Mar 2008
Location: all over the place
Posts: 759
MrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond repute
Default Re: Paying back company relocation fees

Originally Posted by hitchcock71 View Post
if you signed a contract saying you would pay it back then you should do .speak to your company - ask how they want the money paid back

tut tut tooooo honest.....

im on the fence hun, company brought us to UAE - signed all the contracts, did the relocation, bought the cars then they laid hubby off after 6 months - they aint paying the relocation fees for us to go home though. Whats good for one is good for another.... as one would say...
MrsHaps is offline  
Old Jan 6th 2009, 12:02 am
  #11  
BE Enthusiast
 
Joined: Feb 2006
Location: UK to Sydney Feb 06
Posts: 738
TillyG is a glorious beacon of lightTillyG is a glorious beacon of lightTillyG is a glorious beacon of lightTillyG is a glorious beacon of lightTillyG is a glorious beacon of lightTillyG is a glorious beacon of lightTillyG is a glorious beacon of lightTillyG is a glorious beacon of lightTillyG is a glorious beacon of lightTillyG is a glorious beacon of lightTillyG is a glorious beacon of light
Default Re: Paying back company relocation fees

Originally Posted by MrsHaps View Post
tut tut tooooo honest.....

im on the fence hun, company brought us to UAE - signed all the contracts, did the relocation, bought the cars then they laid hubby off after 6 months - they aint paying the relocation fees for us to go home though. Whats good for one is good for another.... as one would say...
But the OP's situation is different. He is *voluntarily* leaving, basically breaking the agreement that he made with his sponsoring company. And the terms of breaking that contract (from his side) are that he will pay back 50% of the costs if he breaks it after 1 year. Now, if the company had laid him off and he ended up having to go back then I would suspect the OP wouldn't have to pay the 50% back as it wasn't his *choice* to leave.

Can't you see the difference in the situations?
TillyG is offline  
Old Jan 6th 2009, 12:08 am
  #12  
BE Enthusiast
 
Joined: Mar 2008
Location: all over the place
Posts: 759
MrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond repute
Default Re: Paying back company relocation fees

Originally Posted by TillyG View Post
But the OP's situation is different. He is *voluntarily* leaving, basically breaking the agreement that he made with his sponsoring company. And the terms of breaking that contract (from his side) are that he will pay back 50% of the costs if he breaks it after 1 year. Now, if the company had laid him off and he ended up having to go back then I would suspect the OP wouldn't have to pay the 50% back as it wasn't his *choice* to leave.

Can't you see the difference in the situations?
yes of course, this was not my first response to the OP

but would they pay his relocation back home if they were finishing him.... i very much doubt it.

regardless - i would speak to them to see if you can negotiate something OP!
MrsHaps is offline  
Old Jan 6th 2009, 7:52 am
  #13  
Richard & Nikki
Thread Starter
 
dickchap's Avatar
 
Joined: Jan 2005
Location: Mackay
Posts: 264
dickchap is a name known to alldickchap is a name known to alldickchap is a name known to alldickchap is a name known to alldickchap is a name known to alldickchap is a name known to alldickchap is a name known to alldickchap is a name known to alldickchap is a name known to alldickchap is a name known to alldickchap is a name known to all
Default Re: Paying back company relocation fees

My notice period is only 4 weeks, and have a pretty good idea of how much i would have to pay back after a years service give or take a few dollars. It was written in my terms of employment that if i left the company on my terms then i would have to pay the relocation costs back. Also, if my employment is terminated because i'm not performing i then also have to pay back the money. I've planned out what to save each month and in what order things need paying off. The best solution would be to wait until the 2 years are up, but myself and the family can't wait that long.

DC
dickchap is offline  
Old Jan 6th 2009, 10:03 am
  #14  
 
Joined: Feb 2005
Posts: 629
ShozInOz is an unknown quantity at this point
Default Re: Paying back company relocation fees

Originally Posted by MrsHaps View Post
yes of course, this was not my first response to the OP

but would they pay his relocation back home if they were finishing him.... i very much doubt it.

regardless - i would speak to them to see if you can negotiate something OP!
Most professional fixed term relocation contracts should have a clause to the effect that if the employer terminates the contract prior to the end of the term (other than for gross misconduct), then then the employer will pay the employee x months salary (9 months is not uncommon). This would easily pay the return costs. Accepting a contract without at least 3 months salary due on early termination is not a good idea. The terms of the contract are what matters, and both parties sign and accept these. Any ambiguous terms are usually in the favour of the employee in terms of contract law.

Not paying any monies owed, even overseas, is a very bad idea. In any case, companies have every right to claim this from the salary - and it is in the employee's interests that this comes out of pre-tax salary.

Last edited by ShozInOz; Jan 6th 2009 at 10:05 am.
ShozInOz is offline  
Old Jan 7th 2009, 4:11 am
  #15  
BE Enthusiast
 
Joined: Mar 2008
Location: all over the place
Posts: 759
MrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond reputeMrsHaps has a reputation beyond repute
Default Re: Paying back company relocation fees

Originally Posted by ShozInOz View Post
Most professional fixed term relocation contracts should have a clause to the effect that if the employer terminates the contract prior to the end of the term (other than for gross misconduct), then then the employer will pay the employee x months salary (9 months is not uncommon). This would easily pay the return costs. Accepting a contract without at least 3 months salary due on early termination is not a good idea. The terms of the contract are what matters, and both parties sign and accept these. Any ambiguous terms are usually in the favour of the employee in terms of contract law.

Not paying any monies owed, even overseas, is a very bad idea. In any case, companies have every right to claim this from the salary - and it is in the employee's interests that this comes out of pre-tax salary.

its obviously alot different in Aussie land.
MrsHaps is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information -

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.