Work permit extension employer asking to sign payback clause agreement

[San16]

Hi everyone can anyone please help me. My husband came to Canada on employer specific work permit under Atlantic immigration pilot program. We have already applied for PR but due to Covid-19 pandemic our application is taking longer time for processing. We received biometric request a day before service Canada office lockdown. So we haven't provided biometric till now. Now my husband's work permit will expire in August and to legally work here he needs to apply for work permit extension and he needs a new offer of employment from his current employer and employer also needs to pay compliance fee. They have put forward an agreement in which they have included a conditional payback clause for the legal expenses (~$2,200 CAD or more) incurred if he Leaves the company (or vice versa) before 12months from the date of sign-off. The amount includes lawyer’s fee, various charges and taxes incurred by the lawyer’s firm.At the time of initial offer in 2018 this was not discussed or stated in the contract that on renewal they will put a claw back clause.My question is if this is acceptable as a standard in Canada and depends upon the company's policy?

 

[scylla]

Hi everyone can anyone please help me. My husband came to Canada on employer specific work permit under Atlantic immigration pilot program. We have already applied for PR but due to Covid-19 pandemic our application is taking longer time for processing. We received biometric request a day before service Canada office lockdown. So we haven't provided biometric till now. Now my husband's work permit will expire in August and to legally work here he needs to apply for work permit extension and he needs a new offer of employment from his current employer and employer also needs to pay compliance fee. They have put forward an agreement in which they have included a conditional payback clause for the legal expenses (~$2,200 CAD or more) incurred if he Leaves the company (or vice versa) before 12months from the date of sign-off. The amount includes lawyer’s fee, various charges and taxes incurred by the lawyer’s firm.At the time of initial offer in 2018 this was not discussed or stated in the contract that on renewal they will put a claw back clause.My question is if this is acceptable as a standard in Canada and depends upon the company's policy?

You really need to speak with an employment lawyer.

Payback clauses are legal and sometimes put in place for a variety of expenses including education / training, legal and relocation. Basically the company is saying that if they are making some sort of investment in you, then they have an expectation you remain with them for a minimum period of time.

 

[canuck78]

Your question has essentially proved why they are concerned. Given covid most companies don’t have extra money to be investing in employees planning on leaving as soon as possible. You’ll need to consult with an employment lawyer as @scylla said.