FREE 10+ Repayment Agreement Samples in MS Word | Google Docs | Apple Pages | PDF

Companies invest a lot of money to recruit and relocate top talent in today’s society, but that same talent is often a target for competitors. An Employee Repayment Agreement is required to ensure that this talented employee does not allow the company to relocate them across the country only to leave in six months to work for a competitor. A Repayment Agreement is a legally binding contract that states that if an employee resigns or is fired by the company within a certain time frame after relocating, the employee agrees to reimburse the company for any relocation expenses paid by the company.

10+ Repayment Agreement Samples

A repayment agreement is a legal document between a borrower and a lender that spells out the terms of the loan (or other owed amount) as well as both parties’ responsibilities. Traditional loans (such as student loans) and past-due debts may be subject to a repayment agreement (such as back rent or unpaid tax bills).

1. Repayment Agreement Template

2. Letter Agreement on Repayment Schedule

3. Subsidy Repayment Agreement

4. Relocation Repayment Agreement

5. Owner Repayment Agreement

6. Repayment of Overpaid Wages Agreement

7. Temporary Repayment Agreement

8. Sample Unpaid Rent Repayment Agreement

9. Repayment Agreement for Rehabilitation

10. Employee Repayment Agreement

11. Printable Repayment Agreement

Tips for a Valid Repayment Agreement

1. Before starting work, have the employee sign a written agreement. If you’re working with a recruiter or headhunter, make sure they’re aware of the employee repayment obligations upfront so there aren’t any surprises.
2. Repay the loan in installments based on the length of service. The amount of payback is usually reduced on a sliding scale by most employers.
3. Make the agreement simple and straightforward – the employee should acknowledge the amount of the investment and agree to the repayment schedule.
4. Check to see if the contract contains at-will employment language.
5. Make sure you follow the Fair Labor Standards Act and any state or local laws if you plan on withholding part or all of this repayment from the employee’s final paycheck! Any such deduction requires written authorization, and you must never reduce your pay below the minimum wage.
6. Don’t forget about the taxes! Because this is considered income, it must be taxed to the employee. On the other hand, when the employee repays the reimbursement, the Company must deduct any deduction is made for it from his or her income. Repayment tax issues are complicated, so consult a tax lawyer!
7. Include a clause that says “in its entirety.”
8. Enforce these agreements with all employees on a regular basis.
9. Do not distribute any relocation benefits until the signed Agreement is in your possession!
10. If you hire a recruiter, include a replacement guarantee provision in the contract, stating that if the employee leaves within a certain time frame (usually 30-90 days), the recruiter will refund all or a portion of their fee, or that they will find a replacement for free or at a reduced rate.

You can use a Letter proposing payment in installments to record your offer to pay off the debt in regular fixed installments.

If you’re the recipient of such a letter and want to accept the proposal, you can use a Letter accepting installment payments to do so.

Consider using a Promissory note to formalize your agreement to pay in installments rather than a letter. It specifies the parties’ names, the amount due, the installment amounts, the provision for interest, and the effect of late payment. Read Loan agreements and promissory notes for more information.

FAQs

If you want to see more samples and formats, check out some repayment agreement samples and templates provided in the article for your reference.