Wording on Relocation letter

Do any of you have some "suggested wording" that I could put in an offer letter to one of our current employees (they are being transferred to another state). I would like to say something about that if they resign from their job within one year of being relocated, they would be responsible for reimbursing the company for their moving expenses".... I'm trying to word it so it doesn't sound too "hardcore", but we do want some kind of committment from them if we do this.. any ideas or suggestions? Thanks!

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  • Whenever we do a letter that has to do with an employee reimbursing the company for any kind of costs, it is just very simple, direct and to the point.

    I don't know your situation, is this a relocation they requested? Or one that they were asked to take?

    I think I would say something along the lines of: I, (EE's name) understand and agree that in the event I become unable or unwilling to fullfill my committment to the position in (state the area of relocation), prior to one year of the effective date, I will be responsible for reimbursing (company name)any portion up to the full cost of relocation fees.

    That gives a full explaination of what you expect, allows you a little wiggle room for compassion in the event they become stricten with some terrible illness and simply cannot continue the position, yet also lets them know that at your company's discrestion, they can be expected to pay the entire cost. I'm sure after the lawyers review it, it may be a little longer, but you get the idea.

    Hope that helps.

  • We have used this method for relocation and for employment agency expenses:

    We pay or reimburse 1/2 initially, then the remainder at 6 months. Our letter of agreement states this in addition to stating that if they do not complete 1 year of service, they will be responsible for reimbursement to the company for any amounts paid out on their behalf. The letter also provides for a signature line where the employee authorizes deduction from their final pay in the instance that they do not complete the 1 year service. We have not had to do this yet, but our procedure at the time of final pay, would be to send a letter with the amounts due and attach a copy of their authorization.

    It is pretty straight forward. I don't know if it complies with any laws, but the company has used it for years and have not had any challenges (but of course we have not had to deduct yet either) and no employee ever refused signing it.

  • Heres a boiler plate
    hope this helps


    TRAVEL AGREEMENT
    BETWEEN
    COMPANY.
    And
    EE




    This TRAVEL AGREEMENT is made and entered into on August 27, 2003 between the . (COMPANY) and EE.

    COMPANY will reimburse EE, up to $ for allowable moving expenses for her relocation to Place.

    EE agrees to work for COMPANY as a TITLE for a minimum of 12 months under the terms of the travel agreement.

    COMPANY does not provide employee housing or pay return moving expenses.

    In the event of termination for cause COMPANY shall have no obligation to pay severance or relocation expenses. For purpose of this paragraph “cause” for termination includes willful misconduct, gross negligence in performance of duties, refusal to perform duties, arrest, indictment, or conviction for a crime involving dishonesty or status of the agency.
    EE will be obligated to pay back costs expended on her relocation prorated as described below. In the unlikely event that COMPANY must terminate EE without cause a 30 day notice will be given.

    EE may resign her position at any time upon 60 days prior notice, in which case COMPANY will have no obligation to pay severance or relocation expenses. EE will be obligated to pay back the costs expended on her relocation as of the date of her last day of employment. For purposes of computing the amount to be reimbursed, the total amount of moving and relocation expenses paid by Company shall be divided by twelve, and the quotient shall be multiplied by the number of months remaining in the term of this agreement.


    __________________________________ _________________________
    EE Date


    _________________________ __________________________
    Executive Director Date

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