A company relocates an employee and the employee signs an agreement to repay relocation fees if that person were to leave the company before 2 years. The company files for bankrupcy shortly after that. The employee not knowing the future of the company searches and finds a new position with a stable company. The bankrupt company now wants to try recover relocation expenses. Does the company have a legal leg to stand on if the employee refuses based on the financial condition of the company and the future stabilty of his job?
2006-09-20 15:33:17 · 13 answers · asked by Bama 1 in Politics & Government ➔ Law & Ethics
yes because the financial health of the company is none of the employees concern so long as they are paying the employee as per the original agreement. If the emplolyee was indeed concerned, the employee would have investigated this possibility before accepting employment.
2006-09-20 15:41:58 · answer #1 · answered by waplambadoobatawhopbamboo 5 · 0⤊ 0⤋
Yes, said bankrupt company have right to ask for repayment: "...and the employee signs an AGREEMENT TO REPAY RELOCATION FEES IF THAT PERSON WERE TO LEAVE THE COMPANY BEFORE 2 YEARS."
And it is ONLY within the discretion of the employer of the bankrupt company whether they will absolve this agreement.
For as long as they said "yes, u have to pay based on waht agreement says", then you have to pay. If they say "its ok.. go and find a new job.. " then u dont pay.
and if i were the employee who signed the agreement, i wil pay them and move on.
2006-09-20 15:47:22 · answer #2 · answered by The Punisher 4 · 0⤊ 0⤋
Unfortunately, if the employee left before the company closed its doors forever, then yes. It was, after all, a legal contract that was signed, and filing for bankruptcy doesn't always mean the company will go belly-up. (Just look at K-Mart)
However, arrangements can be made to pay the expenses over time.
2006-09-20 15:44:45 · answer #3 · answered by LadyJag 5 · 0⤊ 0⤋
If the employee still has a job with the bankrupt company, YES.
Bankruptcy does not give the employee an excuse to walk out of the job.... bankruptcy is ususally Bankruptcy protection to prevent the co. from going bankrupt and pay the employees and carry it's business on.
2006-09-20 15:45:23 · answer #4 · answered by Anonymous · 0⤊ 0⤋
It depends upon the contractual relationship between the employee and the company. If the company did not, in the course of the bankrutpcy, renounce the employee's contract, absent some additional factor, it would seem to have a pretty good case.
2006-09-20 15:35:24 · answer #5 · answered by Anonymous · 0⤊ 0⤋
no.. by filing bankruptcy they forfeit all money owed to them legally.. in that same stance they also have their debts to other companys forfeited..
their slate is wiped clean and they are done as a business unless they want to start over from nothing
also check into what kind of bankruptcy they filed.. in some cases the bankruptcy only effects certain points of the company
2006-09-20 15:36:06 · answer #6 · answered by Anonymous · 0⤊ 0⤋
You are the one that quit, you are liable. Yes it has a legal leg to stand on.
2006-09-20 15:41:27 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Depends on how long they have enough money to retain lawyers. You can try to drag it out in court...make it long and drawn out and maybe they will just have nothing to prosecute you with.
2006-09-20 15:37:28 · answer #8 · answered by Anonymous · 0⤊ 0⤋
If you left you left, doesn't matter the reason.. if they went bankrupt and laid you off that would be a different story
2006-09-20 15:36:19 · answer #9 · answered by TLJaguar 3 · 0⤊ 0⤋
No because the employee didn't quit, he got laid off.
2006-09-20 15:40:52 · answer #10 · answered by Anonymous · 0⤊ 1⤋