Legal Question in Employment Law in New Jersey
Clause 1: At Will Employment: Notwithstanding any other term of this Agreement or policy of Company, either of the Parties may terminate the employment relationship at will.However, Employee agrees to provide the Company with a minimum of three (3) weeks prior written notice of its intent to terminate, which receipt of such notice must be acknowledged,in writing, by the Company.
Question on Clause 1: Does this mean that as long as the Employee gives 3 week notice, there will be no other agreement obligations for the employee (be it mentioned anywhere in the agreement)?
Clause 2: Termination by Employee.: Employee understands and acknowledges that by entering into this Agreement, Company has made an investment in Employee and incurred significant costs, Therefore, the Parties agree that if Employee terminates this Agreement:
a. within twelve (12) months of its commencement, Employee shall pay the Company the amount $15,000
b. after thirteenth (13) months but before this Agreement terminates by its terms, then Employee shall pay the Company the amount of $5,000
Question on Clause 2: Will both (a) and (b) be applicable? i.e. will the employee have to pay $20,000?
1 Answer from Attorneys
Clause 1 does not cancel other valid terms of the agreement upon termination. Clause 2 is probably unenforceable as a penalty. Don't depend on that without having a lawyer review the entire agreement and understand the employment relationship. I can tell you that the language is that of a penalty and courts are hostile to penalties. /p/ See also: http://info.corbettlaw.net/lawguru.htm
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