Training Agreement Payback


December 18, 2020

Training agreements are designed to protect companies from dementers when they invest in their team. It is not intentional to be a tactic to distract people from the intention to stop. That is why the amount of money that the training agreement wants to recover must be a reasonable estimate of the money the company has lost. 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 penalty only if: reimbursement of training fee clauses is generally included in employment contracts, so that a worker/employee is withdrawn within a specified period of time and must reimburse training costs or part of the training costs that the employer has invested. Is it legal for an employer to claim reimbursement for training costs? The short answer is “yes,” provided there is a properly developed agreement. Volunteers. First, the courses for which you are seeking a refund may be voluntary. When workers are required to take training as a condition of employment, the courts have largely made the costs non-refundable.

Similarly, the addition of competition against an employer may work because a worker would not be able to use the training anywhere else. The courts have also gone the other way. In Los Angeles in 2015, a fourth district appeals court made an unpublished statement that former police officers who left the LAPD could not be forced to repay their training to the city. Because the city implemented a larger and more expensive training program than minimum certification, it became an employer-imposed burden that the city had to bear, not public servants, the panel concluded. The refund contract was found to be unenforceable. The details. The agreement should specify the costs of training, duration of training, duration of work, duration of work after training and obligation to repay. A proportional repayment scale based on the length of employment after training is common. Before sending their team for training, many companies ask their employees to sign a training contract that is designed to reimburse investments in their training if they leave before a certain period of time. Ideally, the employer wants the right to deduct any training costs from wages liability to the employee.

If this is the case, this right must be explicitly established in writing, otherwise there is a risk of illegal deduction of wages. The answer is complex and the case law is different. In USS POSCO Industries v. Floyd Case, an employer received a portion of the training fee – US$28,000 – and $80,000 in legal fees.

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