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During the interview session, the hiring manager has told me that she will buyout me in order to join the company ASAP. However, the HR Department has then advised me that it would be appreciated if I can pay the buyout amount myself first and provide them with the invoice (and proof of payment) and they will reimburse me.

I really wish to know if this is common as I haven't experienced such a scenario before.

  • 13
    Get their promise in writing first. – rath Feb 19 at 10:07
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    @rath get the invoice then get the cash from them... before you pay... – Solar Mike Feb 19 at 10:08
  • @SolarMike It says plus proof of payment – Twyxz Feb 19 at 10:18
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    Don't do anything until you get the offer letter and indeed commence work at the new company. Regarding the old company they can just wait. Tell them to send you an invoice. (What can they do, sue you?) They can wait a few weeks. – Fattie Feb 19 at 11:08
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    I think the only correct response to this is: "No thank you". We can wait until my contract is up, or you guys can buy it out when convenient. – Pete B. Feb 19 at 17:24
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I make it a personal policy to never pay for anything 'on my own'. I would indicate that this is not something you are comfortable with and that if they want to buy out the contract they need to just do it themselves, or wait for the contract to end and then convert you.

Something of both this caliber and outside the general rules, seems like a big red flag. Next they will have you 'invoice' this as work performed, misc, or some other oddity that is really them trying to get this under the radar of their normal governance.

5

While it does not happen every day, it happens occasionally, so do not worry about this details.

BUT, be careful. Many things can happen, even unintentionally. The entire buyout thing MUST be documented in the contract you sign with the new company. Even if you will sign (some of) the papers yourself, you should not have to pay the amount from your savings.

The best course of action would be:

  • sign the new contract with the new company, make sure that enough and non-ambiguous details are documented about the buyout;
  • the company will deliver the money to an account you provide;
  • you conduct the exit procedures from the old / current company;
  • at the end you provide copies of the papers to the new company.

I expect that the new company will add some special clauses to your contract as a consequence of the buyout. Read them carefully.

If the new company claims that they have no special clauses regarding the buyout, they should make such statement in the contract.

E.g.:

We agree to buyout... We expect nothing in return for the buyout, except for (a copy of) the written proof of the buyout.

Otherwise, you may find yourself in a scheme of the Nigerian kind - especially that manager and HR are not on the same page.

1

They want you to buy yourself out of your existing contract using your own money, then claim it back on expenses. Sounds like a scam to me. What will you do when they claim that was not the intention and you must have misunderstood something? And it might leave you open to possible legal action from your old employer, with no comeback on your new employer.

Make me wonder what other corners they might try to cut.

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Legally, only the contracted person can buy themselves out. The new company cannot do that, as they have no contract with the current company.

So, in that respect, it is not so strange, and I would not treat it as a red flag.

Now, I know that being “caught in limbo” between having paid the money and getting it reimbursed makes you nervous – I would be too.

But, if you travelled for the interview with the new company, the same thing happened with travel expenses.

So, same principle, just – presumably – a much larger account.

You absolutely must (try to) get the new company to state in writing that they will reimburse.

If they won’t, then first ask why (and take it as a red flag, no matter what their answer). You can also hint, according to how much you want/need the new job, that you may not be able to accept if they do not give you a written undertaking to reimburse.

Also, consider the size of the new company. A large multinational might be “safer” than a 3 or 4 employee outfit (but there is no guarantee).


Tl;dr – it is natural to be nervous, but if you have visited the company premises for interview then you should be able to judge how much you trust them, and a written undertaking from them to reimburse you ought to be legally enforceable (IANAL).

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my heartfelt thank you for all the advises which you all have given to me , I have received the buyout email from them , this is the content :

With regards to your buyout please be informed that Genpact will reimburse the buyout amount on your first payroll upon you joining the company. Please take note, of the steps and conditions below:

1) You will need to report to xxxx office for first day of work on the offer letter as agreed in prioritizing the business needs. 2) In addition to your first month salary payout, the buyout amount will be banked into your bank account. Subject to the acknowledgement of official receipt from your current company where you will need to produce the supporting document(s) with the certified true copy from the sender and submitted within 7 days of your start date. (Kindly note that candidate who is on board after 5th of the month, the salary payout will be credited on the following next month.)

Hmm, i think it is then now safe to proceed ?

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