Relocation costs issue

[Eponine]

Hello, I’m new to this site and have also posted this on the welcome page but maybe it is better here. My problem is that I relocated last year moving my family to start a new job. I signed a contract agreeing to remain in this role for 4 years or pay back relocation costs which were sizeable. However after 6 mths, the company announced it is now itself moving abroad and shutting site in 2 years. They are saying they are still holding me to the contract even though I won't have a job in 2 years which stops me from looking for a new job inless i pay back relocation costs. I would like advice on whether they can still hold me to this. Thanks for any advice given.

[efpom]

Tricky one this!

I ‘m working in a vacuum if I do not have sight of the whole contract.

So, rehashing the facts as you give them:

At the time of agreeing the contract terms, you believed, and so did your employer, that your role would last for 4 years, and that after the expiry of that 4 years your obligation to repay the removal expenses would extinguish.

The company now says that you will have no role after 2 years, which can only mean that your liability to pay the removal expenses will, in any event extinguish after 2 years.

The company says that it is moving abroad. And in consequence, you will be redundant, and will be dismissed by reason of redundancy at which point the contract will terminate.

So, a couple of questions:
How was the removal expenses paid?
When was it paid – before taking up the post, or after your employment began
Was it a loan?
Was it paid as wages?
Was it taxed?
On that, it might be ‘emoluments’ – a very wide definition

[Eponine]

Hi, thanks for your reply

It wasn't a fixed 4 years, that's just the period I would be liable. When I took the job it was as permanent role, and they were talking about progression and future and everything else.

I was paid through my wages, after claiming it back as an expense, so I don't believe it was taxed. It was paid after I started working.

I have asked if they might release me given the news, they are saying they will hold me to it until they make me redundant. There's a clause in there stating it wouldn't apply under redundancy anyway.

My main question is whether I can argue that I signed the agreement based on one set of circumstances, and if I'd have known what they were planning I wouldn't have taken the job, let alone take the relocation. Can the change in circumstances mean I can argue that its no longer valid?

Thanks for your help, its really appreciated

[efpom]

What are the words written in the contract?

[Eponine]

The contract is pretty clear (can’t copy text directly as don’t want to breach it) my question is more whether the change in circumstances would be arguable as making it invalid

[efpom]

It's difficult to answer your question accurately, without sight of the entire contract, but I do not believe your 'change of circumstances ' is arguable.

I do understand that it was your expectation (and that of your employer, unless you can show otherwise), that you would still be 'in post' 4 years on.

I also understand that because you now know your employer will disappear in 2 years, and you will be unemployed, perhaps for a long time, it is in your best economic interests to find another job now, rather than wait around for that!

However, assuming that your contract was open ended, in that a fixed term of employment was not agreed, the effect of the 'change in circumstances' is that you are released from your obligation to repay the relocation expenses in 2 years rather than 4, and in any event, on redundancy. So you have no loss.

So on the evidence, so far, I think you are stuck with the liability, if you do decide to leave 'early' for another post.

I also assume that if you are 'fired' that the relocation expenses immediately crystalise as a debt immediately repayable, in full.

With that in mind, you might wish to consider a scenario where, just before the end, the employer fires you!

So the issue boils down to whether your best interests to bring certainty now, by obtaining another post and taking the loss of the relocation expenses, or wait around for two years with the risk that you could still be fixed with the relocation debt. Only you can answer that.

[Eponine]

Okay, that's obviously not necessarily what i wanted to hear but good to know where i stand. Thanks for taking the time to respond