It is not so unusual for employers to require workers to pay back their training or other wages that the employer incurred on its behalf when they leave their jobs. From time to time, an employee will argue that this type of clause is a punitive clause and therefore is not applicable. However, a clause is interpreted as a sanction only if: the second thing to consider when applying training agreements is the idea of “trade limitation”. As we have already said, training agreements are designed to protect businesses from losing their investments – but the law will not allow an employer to use them to unreasonably prevent someone from changing jobs. If you need help with training costs, please contact a team member. When you run a small business, it`s essential to help your team grow and grow – but you also need to make sure that any investment you make in your team is protected. Here, a training contract can help. In this article, we show you exactly how to use a training contract and provide you with a model training agreement written free of charge. However, in some situations, small businesses also need to protect the investments they make in their employees. D-D doesn`t always cost Earth, but some courses or job qualifications can be very expensive – if an employee ends up leaving his company just after completing a training that your company has paid for, he could seriously pull you out of your pocket. Is it legal for an employer to claim reimbursement for training costs? The short answer is “yes,” provided there is a properly developed agreement.
In some cases, employers try to recover the cost of “workplace” training, which is much more difficult for them to quantify. It has been reported that some large companies, such as Capita and FDM, bring some employees through training programs that cost very little, but the company requires people to leave their jobs after the end of the course to pay back much larger sums, allegedly up to $18,500. On the face of it, it would be a punitive clause and also a commercial restriction and therefore illegal and unenforceable. We understand that there is a legal challenge to these types of clauses. Contact me for more information about our fixed money service to cover training costs by emailing me or calling me on 0207 539 4147. That is where there is a training reimbursement agreement — it is a way for companies to ensure that they do not lose financially if they pay for the development of their employees. Let`s take a look at an example of training chords in action. If a company spent US$1,000 on training, but the employee resigned the day after the course ended, it would be fair and reasonable to ask the employee to repay the US$1,000 as part of a training agreement.