Stay up to date
Subscribe to the blog for the latest updates
When: The timing of the event that would cause repayment terms to kick in should be clearly stated in the repayment agreement. Typically this is spelled out in terms of months to remain employed with the company after the relocation is complete. The most common relocation repayment requires repayment in full if termination of employment is within 12 months after relocation or a prorated amount for up to 2 years. If a move is in process when employment ends, unused benefits typically cease immediately. However, it’s important to note that not all benefits or services can be stopped. For example, Household Goods that are already enroute would have to be delivered and all transportation invoices paid.
Why: To protect your relocation investment. Investing in your employee’s career development, and therefore relocation expenses, is important for company growth and success. No one wants employees to leave and join a competitor - taking valuable experience with them - especially after investing thousands of dollars on relocation. The expectation is that the employee will remain employed by the company and successfully contributing to Return On Investment (ROI) for the associated relocation costs.
Protecting your investment is simply a smart business decision.