Repayment Of Training Costs Agreement

by admin on December 15th, 2020

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. 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. To avoid a penalty for the reimbursement clause, employers should keep in mind that it is a training reimbursement agreement – it`s a way for companies to make sure they don`t lose financially in paying their employees. 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. As has already been said, the other basis on which reimbursement of training costs cannot be imposed if it is restreignable. Courts will allow employers to protect their legitimate business interests, for example by imposing well-developed and reasonable post-employment restrictions, but they will not allow employers to unduly warn a worker who changes jobs if they wish. The provisions relating to the reimbursement of training places, even if it is a real estimate of the injury, can be considered a commercial restriction if they prevent the worker`s change of employment. Certainly, it seems likely that the type of provisions allegedly introduced by people like Capita would lead to workers leaving their jobs, so that they can be considered unenforceable.

Contact me for more information about our fixed fee service to collect training costs by calling me by email or call me on 0207 539 4147.

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