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Penalties for Early Termination

Discussion in 'Termination: Firing & Resignation' started by Rocketman, Apr 30, 2021.

  1. Rocketman

    Rocketman Law Topic Starter New Member

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    Jurisdiction:
    Texas
    A family member completed flight training and started flying for a company in Texas and was required to sign an employment contract.
    ..." Employee acknowledges that the training provided by Employer, including the Employee’s use of Employer’s airplanes and aviation equipment, is highly valuable for the Employee and requires the Company to expend significant time and financial resources to provide this benefit to the Employee.
    i. In exchange, Employee agrees to (1) not terminate this Agreement for any reason other than Employer’s material, uncured breach for a period of twelve (12) months following Employee’s successful completion of the Training Program (“Commitment Period”) and (2) provide Employer at least twenty-one (21) days’ prior written notice. ..."

    The training recieved was about 1.6 hours of dual flight with the companies chief pilot. My issue is that the fees agreed to in the contract prior to starting, were very high, >$7500. when you look at the standard plane rental, ~$140/hr, and the time of the chief pilot ~$30/hr and the money they paid during the training it is<<$500. The implied cost of training when the contract was signed implied new skills/ratings etc. The job is just flying the plane based upon the certificates earned prior to starting with the company.

    How can the contract be terminated? These fees appear to be very excessive and do not support the actual training provided, so is this legal?
     
  2. Zigner

    Zigner Well-Known Member

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    YOU have no issue. Your family member agreed to this.

    Your family member had no problem with it. Your family member is free to speak to an attorney about the matter.
     
    justblue likes this.
  3. adjusterjack

    adjusterjack Super Moderator

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    It's legal. It's common. It's enforceable. Your family member knew, or should have known, what he was getting into when he signed the contract. I suggest he re-read it and follow the terms and conditions to the letter if he doesn't want to be a defendant in an expensive lawsuit.
     
    justblue likes this.
  4. Tax Counsel

    Tax Counsel Well-Known Member

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    Contracts are not required to be cost effective for each party. Your relative knew (assuming he/she read it before he/she signed) what he/she was agreeing to and presumably knew the value of the training he/she got. And knowing all that, your relative made the choice to sign the contract. So the relative cannot avoid the contract now based on the fact that he doesn't think the contract is fairly priced. Without reading the whole contract and knowing which state's law governs that contract I cannot say what options he's got. For that, he should take the contract to an employment law attorney.

    And let me guess — he/she now wants out of the contract because he doesn't want to honor his/her end and stay the full 12 months because the relative got an offer for something better with another company, right? Well, for before agreeing to commit to a particular company on deal like this one should fully explore those other options and understand the costs of the commitment being made
     

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