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In the initial contract, was there a relocation clause? Did you offer to pay for moving costs? Was there a stipend for living away from home? If none of these are the case, then no, you would have no obligation to pay his lease out.
I would caution you though to look at past emails and/or conversations to make sure that nobody made any verbal or unofficial offers to compensate the employee when he initially took the contract. There have been cases where employers were left on the hook because a manager sent a few links to rental listings and the courts interpreted this as relocation support.