Asked to pay back business expenses- legal?

tradhead

Hi everyone,

I've just started a new job, and have been given my contract to look over this weekend.

I'm concerned about one clause, where it states that in the case of termination of contract by either party within the first year of employment, the employee must re-pay all business expenses incurred up to that point. If termination occurs within the second year, half of all business expenses occurred must be paid.

As I've literally just started I'm obviously not planning on leaving anytime soon, but this seems really bizarre to me. Does anyone know if this is legal? Can I refuse to agree to it?

I've never had an issue with a contract before, but this one is pages long and the job description is a lot longer and more complicated than was mentioned at interview, (and also there was no mention of travel or re-location at any stage but the contract says the position involves travelling and relocating continuously depending on clients location and requirements) so I just want to make sure everything is alright with it before I sign.

I know legal advice is not allowed here but if anyone has any experience with this sort of thing it would be hugely appreciated!

Peregrinus

Sounds to me like you've got a "boilerplate" contract where they stick in a job title and description that is specific to your role, and then bolt on pages of standard terms that may have little relevance in your case but are included in all contracts because, conceivably, in some contracts they might turn out to be useful.

Do you expect to incur much in the way of business expenses for which you will be seeking reimbursement? Obviously, if not, this clause is unlikely to cause you much problem in practice.

A clause like this sounds to me suited to a situation in which they are reimbursing you with business expenses for things that they'll only get benefit from if you stick around for a while - e.g. they pay for you to get additional training or qualifications, to attend conferences and engage in networking, etc, etc. If all you expect to be reimbursed for is, e.g., milage for travelling on company business, it would be outrageous to try and reclaim any of that when you leave.

The only time I have seen similar was where extensive external training was part of the new job - in this case accounting classes. There was no mention of any other expenses being recouped.

JimsAlterEgo

I would be asking what this is supposed to cover. You don't want to be sent on Asian trips in business class and then pay that back.

johnnyaxe

JimsAlterEgo wrote: »

I would be asking what this is supposed to cover. You don't want to be sent on Asian trips in business class and then pay that back.

But how much of a verbal response can actually make a difference? Let us say he asks so to the person in charge and they say "No" but then he is sent to Asia on the business class and is charged after, it was in the contract, even so he was told no, if he goes to court, who has the better chance of winning?

tradhead

johnnyaxe wrote: »

But how much of a verbal response can actually make a difference? Let us say he asks so to the person in charge and they say "No" but then he is sent to Asia on the business class and is charged after, it was in the contract, even so he was told no, if he goes to court, who has the better chance of winning?

This is a good point actually; I'm going to ask tomorrow, and expect to be told that it's just a standard contract, blah blah blah... But would it be acceptable then to ask for it to be taken out of the contract? Or would I be expected to sign and just take his word for it?

Stheno

tradhead wrote: »

This is a good point actually; I'm going to ask tomorrow, and expect to be told that it's just a standard contract, blah blah blah... But would it be acceptable then to ask for it to be taken out of the contract? Or would I be expected to sign and just take his word for it?

I'd be asking it to either be removed or amended to clarify what expenses it covers