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HR Tip: Recovering relocation expenses

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7th May 2009
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These questions are being answered by Learn HR, a market leader in the provision of HR and payroll training and nationally-recognised professional qualifications.

Question:

"Recently we recruited a man and paid a generous proportion of his relocation expenses, only to have him leave after six months to work for a nearby company. We suspect he used us to fund his move. What can we do to stop this happening again?"

Answer:

The best solution would be to put a clause in the offer letter making clear that you will recover all or part of specified relocation expenses if the employee leaves within a certain period. This needs to be reasonable. I would suggest that you recover the full amount if he or she gives notice within the first six months, then reduce this by one sixth for every subsequent month. Be sure to get the employee's written acceptance of this arrangement

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