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. 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. 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. 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. 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.
Training agreements are a perfectly legal and appropriate way for companies to protect themselves financially. However, if you decide to wear one, there are a few things you should watch out for. If a training agreement has the practical effect of „capturing” an employee in his or her current role, it may well be considered unenforceable. But if that employee stayed two years after the end of the course, using this training every day, then $2000 is not a reasonable estimate of the money that the company has really lost. In that case, it would not be wise to use a training agreement to recover the full $2,000 — and it is very likely that it would not be legally successful. This is where a training reimbursement contract is concluded – it`s a way for companies to make sure they don`t lose financially if they pay for the development of their employees. 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. This agreement includes the following sections: 1. Payment of course fees 2. Minimum requirements 3. Refund of tax in case of termination 4.
Maintenance payment 5. Minimum requirements 6. Reimbursement of maintenance in case of termination Some training contracts operate in a kind of sliding ladder where employees stay in the company for a long time, the less he must repay 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. Here, too, it is above all a question of putting this balance in order. The training agreement model provided above will do the job in most cases – but sometimes you need more specialized assistance. If you need help developing a training contract, contact us with our human resources consultant.