Relocation Reimbursement Dilemma: Does Notice Period Count Towards the One-Year Requirement?

Hi, I need help regarding the Relocation Reimbursement Policy. My offer/appointment letter states that the candidate/employee must serve a minimum period of one year with the company; otherwise, they will have to reimburse the entire amount to the company. If I resign after completing 10 months and then serve the complete 2-month notice period, will it be considered as 1 year? Or do I have to complete 1 year first, then resign and serve a 2-month notice period? Your urgent help is greatly appreciated. Thank you.

Hello Nathrao,

Thank you so much for your reply.

As per your suggestion, 10 months + 2 months' notice will be counted as 1 year of service. Right? I will also check my HR policy manual.

If any other person in the group has any other suggestion or opinion, please share.

Thanks, Sandy

"My offer/appointment letter mentioned that the candidate/employee has to serve a minimum period of one year with the company; otherwise, they will have to reimburse the entire amount to the company.

The condition is illegal and against public policy, and hence void. A void condition can never be enforced."

Relocation Policy and Minimum Service Period

The relocation policy typically applies to reimbursements allowed to help employees move to a designated location when they are officially transferred by the employer. I doubt if the policy is applicable to your question, which pertains to the minimum period of service stipulated by the employer.

CiteHr has published extensive discussions on the legality of the minimum period of service. You can see this link as one of the sample instances: https://www.citehr.com/30808-bond-le...-download.html. However, the legal position is not of practical help because the legal process is time-consuming and expensive, and it depends on how strongly your employer is ready to fight a court battle.

This means that for all practical purposes, whether the one-year period in your case is 10 months of service plus two months of notice period or whether it is 12+2 would depend on the employer's interpretation.

Cheers,
Ganesh