Legal Question in Business Law in Texas

Existing agreements for a Spin-off company

Part of my contract for employment included relocation expenses, including a two year commitment stipulating a phased pay back in case I chose to change jobs before the two year period. Recently, it was announced that the parent company that I work for is spinning off into two separate companies; I will work for the new company. The contract only stipulates the parent company as my employer, and not any subsidiary. Can I change jobs without legal recourse? Is the agreement still valid?

Asked on 6/29/06, 10:40 am

2 Answers from Attorneys

Peter Bradie Bradie, Bradie & Bradie

Re: Existing agreements for a Spin-off company

Hard to say without knowing what the arrangement is between the companies. Check with Human Resources, they should have a handle on it.

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Answered on 6/29/06, 1:38 pm

James Grissom Law Office of James P. Grissom

Re: Existing agreements for a Spin-off company

Depends on what the spin-off agreements state. If the spin-off agreements state that the new company assumes the contractual responsiblities of the old company, your contract is probably included. Depends also on what your contract says about successors, etc.

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Answered on 6/29/06, 11:41 am

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