Have I been terminated “for cause” if I turn in a two weeks notice and am immediately walked out?
Almost one year ago, I accepted a new position within my company and was relocated out of state. One of the stipulations was that I had to sign a relocation agreement stating that I would pay back the relocation costs if I “voluntarily terminate, retire, or am terminated for cause at any time during the first year after relocation”
I am planning to put in a two weeks notice, with my last day timed to 1 year and 1 day after relocating. It is common practice for my company to walk out employees after they put in notice. If I am walked out before the 1 year mark (before the date stated on my notice), will I be required to pay back the relocation fees?
Answers (1)
Generally speaking, the answer requires contract interpretation. That means a judge has to review it and decide if "voluntarily terminate . . . during the first year" means to form an intent to terminate (give notice) or terminate the employment. If the former, you owe the relocation costs, if the latter, you don't.
To interpret the contract, courts use the plain and ordinary meaning of the words. If the wording is capable of two different and competing meanings, the contract is ambiguous and the court can look behind the words to bargaining evidence, like emails or what the employer has done in similar cases.
However, even if a judge agrees with you, you lose, since you will be a defendant in a collection lawsuit incurring legal fees that will probably surpass the relocation costs. Therefore, you should avoid a factual situation that has an uncertain legal outcome. In other words, consider delaying your depart date by two weeks or giving less or no notice.
posted by Neil Klingshirn | Aug 22, 2019 09:08 AM [EST]
Answer This Question
Sign In to Answer this Question
Related Questions with Answers
Contact Neil Klingshirn
Neil Klingshirn
AV rated Super Lawyer and Employment Law Specialist
Independence, OH
Phone: 216-382-2500