What is an employee relocation repayment agreement, and why would you need one? Well, have you ever worked to relocate an employee only to be left with a sour taste in your mouth when that employee left, whether by choice or simply because life situations change?
While employers carry a certain obligation to protect their employees, they also need to protect their assets, including their bottom line. Placing restrictions and stipulations around relocation benefits are important to the overall health of the business. That’s why your organization needs a Relocation Repayment Agreement to go along with your employee relocation policy.
Here’s what you need to consider when working to craft your company’s relocation repayment agreement:
What: A Relocation Repayment Agreement is a legal document signed at the beginning of a relocation that clearly defines pay-back terms should the employee leave the company. It covers voluntary leave or termination with cause during the move, or for a specified period of time after relocation. It should also clearly explain every aspect of the relocation program and how it will be affected if the repayment agreement comes into effect.
NOTE: Due to legal & contractual obligations within the document, it’s important to consult with your legal department before drafting an RRA.