It is common for employment contracts to allow the employer to recoup relocation, training and other expenses incurred by it in respect of the employee. See, for example, Precedents: • Clauses—place of work, residence, mobility and relocation • Agreement—education and training costs • Clauses—deductions Sometimes, the relevant clause will specify that the obligation to repay certain expenses incurred on the employee's behalf by the employer will only be triggered if the employee does a certain thing and, if that trigger event does not occur, the employer will not seek repayment. Penalties A penalty is a payment of money stipulated in order to punish the offending party if it breaches the contract. The penalty rule: • may potentially apply in circumstances where the contract: ◦ contains an obligation on one party to perform an act, and also ◦ provides that, if that party does not perform