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I signed a return in service contract with my old employer

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I signed a return in service contract with my old employer for 2 years of service for training. I did not complete the 2 years of service and thus had to pay back $3600 in salary to my employer. This amount has since gone to a collections agency in Newfoundland. I now live in Nova Scotia since 2012 after quitting my NL job in late 2011. How would the statute of limitations apply in this situation? Since this "debt" was never really a loan or something I applied for (i.e. never on my credit report until I noticed collections letters), can my old employer sue me for this money?

Hello! My name is***** you for your question. I'm reviewing it now, and will post back again shortly.

When did you first owe the employer this money? When did you quit training?

Customer: replied 1 month ago.
I stopped working in December 2011 and formally terminated my job in March 2012. I was working full time when my employer offered to train me for a specific job area. They agreed to pay my salary during the education program (3 months training) if I agreed to work for 2 years in a new position. I signed a contract but completed only 1 year of service instead of 2 and left the province because I wasn't getting enough work in the field I had been trained for.

The employer can certainly sue you for the money. It is not just loans that can be sued for.

And the limitation period is 6 years so the collection agency will not only file a report that will harm your credit rating but most likely will sue you.

And it is likely that they will sue you in NL given that is where you work and where your debt to the employer, who is located there arose.

I am sorry this is the last thing you wanted to hear but I know you want and certainly need the correct answer.

Please feel free to post back with any follow-up questions you may have. If you don't have any then I hope I have earned a 5 star rating but if you don't feel that I have please don't hesitate to reply back and let me know what more I can do to assist you. Finally, please know that even after you rate me I will be here for you and you can ask follow-up questions if you think of them later on at no further charge of course.

Customer: replied 1 month ago.
Thank you for the information, I really appreciate it. So far I have only received a few letters in a general format stating I owe them money to the collection agency which has since stopped. There is a new entry on my credit report which did lower my score a nice bit. I live in a different province now. Would they have to summon me to Newfoundland to sue me? Or would this happen in Nova Scotia? Just confused on which provincial laws would apply to my situation if such a case arises.

You would be served in NS but the laws of NL apply and if there is a trial it would be there.

You could attend by way of telephone or web conference.

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