Training Agreements For Employees
Not only would your company not be able to benefit from paid training in the short term, but it could also, in the end, pay again for the same training if it makes a replacement. Factor in the lower costs inherent in any recruitment process and you can see how this could possibly leave a small business in a really difficult position. 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. The second thing to think about when implementing training agreements is the idea of "trade restriction." 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 the cost of the course is relatively low, the training contract could come from the employee`s last salary. If it costs more, employers could establish a more structured payment plan.
We are often asked to develop this type of agreement for employers and to determine whether they are applicable. As usual, the answer to the question of whether the agreement is applicable is that it depends on the circumstances and how the agreement was developed. The applicability of a training reimbursement agreement can really be questioned on two legal grounds: first, because it is a punitive clause and, second, because it limits trade. I will look at them one after the other. Some training agreements operate in a kind of sliding scale, where the longer the employee stays in the company, the less he must be reimbursed if he decides to continue. For other companies, the training contract is a little black and white, with a set deadline indicating when the employee is no longer responsible for refunds. The Caldecott Foundation is investing considerable funds in training to achieve the following:- Let`s take a look at an example of an action training agreement. 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.