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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 50518
Experience:  Qualified Employment Solicitor
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I was relocate by my company and it states in my contract

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I was relocate by my company and it states in my contract that If you resign less than 12 months from date of transfer, you’ll be required to payback 100% of the cost of the relocation package.
Does that mean that I can hand in my resignation before that date (leave the company on the date of transfer) or do I have to wait until that date to hand in my resignation

Hello, my name is***** am a qualified lawyer and I will be assisting you with your question today.

How far into the contract and package are you? Please can you also confirm whether you wish to resign on the payback basis mentioned? Thank you

Customer: replied 1 year ago.
I Started on the 7th of December 2015(date of transfer). I do not wish to payback the relocation cost.

OK thank you, ***** ***** it with me. I am in court today so will prepare my advice during the day and get back to you at the earliest opportunity. There is no need to wait here as you will receive an email when I have responded. Thank you.

Hi there sorry I forgot to ask - do you have the exact wording of the clause in question please?

Customer: replied 1 year ago.
34;If you resign after localizing in the new home country you will be accountable for any costs associated with repatriation to your former home country or another country. If you resign less than 12 months from date of transfer, you’ll be required to payback 100% of the cost of the relocation package.
This applies whether you leave voluntarily or you are dismissed for reasons of misconduct, poor performance or any other disciplinary matter. It does not apply in the case of redundancy."

The issue is that this wording will be open to interpretation so there would be a potential argument for both sides. In your support, the clause does not specifically say ‘if you hand in your resignation’ which would have required you to actually wait until the 12 months are up before being able to submit your resignation. On the other hand it only mentions ‘if you resign’ which one may interpret as being the actual end of your employment through resignation, meaning that you could potentially hand in your resignation before the 12 months and time it so that the actual resignation occurs when that period is up.

However, it is best not to assume that the employer would be happy with that so you should check with them that resigning as you had intended is acceptable – it would give you a good indication of whether they are also likely to challenge this and take it further, such as by making a claim to pursue you for that money.

I hope this has answered your query. I would be grateful if you could please take a second to leave a positive rating (3, 4 or 5 stars) as that is an important part of our process and recognises the time I have spent assisting you. If you need me to clarify anything before you go - please get back to me on here and I will assist further as best as I can. Thank you

Ben Jones and other Employment Law Specialists are ready to help you
Customer: replied 1 year ago.
Thanks Ben,yes I feared that it was open for interpretation great that you could confirm as much.regards

You are most welcome, all the best