Is it a legal item in employment agreement? (job offer, employee, interviewing)

[pierse_lee]

Hi all,

I just received an offer from a company, and I saw the following item in the employement agreement:

Resignation Within Two Years of the Starting Date of Employment. In view of the Employer’s expenditures in the hiring, training, and other initial costs and efforts in the employment of the Employee, the Employee agrees to timely pay the Employer a compensation in the amount of Forty Thousand Dollars ($40,000.00) if the Employee resigns or otherwise leaves the employment before or within two years of the starting date of the employment (or fails to report to work altogether after accepting the Employer’s formal offer of employment & training from the employer’s side).

I think it's very hard to accept this item, but I can't negotiate with the company, should I pay the company $40000 if I signed this contract, and resignation within two years?

Pierse

[BobNJ1960]

Not enforceable. They must pay you the agreed upon salary for time worked. Not with a deduction for their effort.

[UTCO94]

What's the flip side? How much are they going to compensate you if they terminate your employment?

If it's anything less than the $40K, you have a contract of adhesion, that many courts will refuse to enforce.

Now, if they were going to pay for your UT MBA, and charge you back an actual loss for costs incurred should you leave the company prior to a set date - that's a different story.

if they're just trying to hamstring you with their recruiting and training costs, I'd tell them to roll that contract tightly and see if they can fit it around or beside that stick up their...

Although, based on the Engrish in those contract terms, I'm going to say that this is

[pierse_lee]

This is a two-year employment contract, and it says I'll be charged $40000 if I quit within 2 years, that's all.

I am wondering if the court will support this item if I quit within 2 years, anyone can answer it?

[susman]

I doubt that clause in the contract is enforceable by the law. Why they would put that in a job offer blows my mind. You can't have your cake and eat it to. That is the risk of hiring employees and ensuring your screening and interviewing process is very thorough. Seems to me their HR sucks and someone there came up with this crazy idea, lol.

Personally I wouldn't sign it. I don't put my signature on things I don't agree with.

[aneye4detail]

That is one of the most ridiculous and absurd things I have seen. I'm curious to see the rest of the letter. Even wondering if it's one of those scams.

[Mr_Geek]

I wouldn't sign that thing unless they gave me a $40,000 signing bonus.

[veuvegirl]

Contact an employment lawyer. We can only speculate it isn't enforceable.

[dessertlover]

I would never work for a company that pulled this B.S.

[Disgustedman]

Originally Posted by pierse_lee

Hi all,

I just received an offer from a company, and I saw the following item in the employement agreement:

Resignation Within Two Years of the Starting Date of Employment. In view of the Employer’s expenditures in the hiring, training, and other initial costs and efforts in the employment of the Employee, the Employee agrees to timely pay the Employer a compensation in the amount of Forty Thousand Dollars ($40,000.00) if the Employee resigns or otherwise leaves the employment before or within two years of the starting date of the employment (or fails to report to work altogether after accepting the Employer’s formal offer of employment & training from the employer’s side).

I think it's very hard to accept this item, but I can't negotiate with the company, should I pay the company $40000 if I signed this contract, and resignation within two years?

Pierse

I find it interesting they (In a hidden way) also include firing you ("Employee resigns or otherwise leaves the employment before or within two years") so frankly I find this very distasteful and would consult a lawyer, but mainly keep looking for a less "Jerkwad" company to work for.