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VIC Relocation Clause on Employment Contract - Liable to Pay Costs?

Discussion in 'Employment Law Forum' started by JoeBright, 9 November 2015.

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  1. JoeBright

    JoeBright Member

    9 November 2015
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    My employment contract states "If you resign from your employment within 12 months of your commencement date, you will be required to repay all relocation costs paid or reimbursed by the Company under this clause."

    I want to know that if I can no longer fulfill my duties due to a chronic disease which I was diagnosed with after beginning my employment with them and had to discontinue my employment with the company, am I still liable to repay all of the costs under Employment Law?
  2. Sophea

    Sophea Well-Known Member

    16 April 2014
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    Hi JoeBright,
    Did the company pay for the costs of your relocation for the purposes of this employment? If so, and you resign as a result of a chronic disease. It may be possible to argue that the employment agreement has been frustrated. This means it is impossible for the contract to be carried out and therefore, neither party is penalised for terminating it. Your employer may press to recover the costs, however, you may have reasonable grounds to either negotiate your way out of repaying them given the circumstances or arguing frustration of contract.

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