A friend of a friend is relocating to CPT for work and the new employer has provided x-amount for relocation costs. If the person relocating does not make it through the probation period (there is the possibility of this for various reasons), will they be liable to reimburse the relocation costs to the company?
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relocation costs
- Thread starter mooks
- Start date
Sodan
Expert Member
Depends on their contract. Always read the contract carefully.
ToxicBunny
Oi! Leave me out of this...
Always depends on the contract wording...
But in all likelihood, yes.
But in all likelihood, yes.
HavocXphere
Honorary Master
Depends - generally the company will carry it...unless the contract specifically provides for it being recovered.
I'm going through the same thing right now (just international) and my contract clearly spells out that anything less than X months of service and they reserve the right to claw back the relocation benefits. Seems reasonable to me though given that the relocation benefits are pretty generous. I doubt they'd enforce the clawback but its there.
They will divide the amount by minimum number of months you need to work for them. If you resign before then, you owe them the balance.. eg: R240 000 relocation costs = 24months service. If you resign after 8 months you owe them R160 000 cash
(R240 000 cost - R80 000 months worked= R160 000 balance)
(R240 000 cost - R80 000 months worked= R160 000 balance)