However, if the training contract is properly drawn up, it can reasonably be expected that the employer will pay a certain share of £2000. Let`s take a look at an example of a training agreement in action. If a company were to spend £1,000 on a training course, but the employee resigned the day after the course ended, it would be fair and appropriate to ask the employee to repay the £1,000 as part of a training agreement. Properly executed, training agreements are a completely legal and appropriate way for companies to protect themselves financially. However, if you decide to place one, there are a few things to watch out for. Here too, it is important above all to find this balance in order to obtain the correct formulation of the training contract. In most cases, the model proposed above for training conventions does the job, but sometimes you need more specific support. If you need help creating a training contract, contact us to learn more about our human resources advice. But important for employers, it can also be used to determine when a worker might be responsible for reimbursing these training costs and how that reimbursement would work. In particular, it can determine whether these costs become reimbursable when an employee leaves the company shortly after the end of the training. A training agreement is a written agreement between an employer and his employee that sets out the terms of any training that the company pays for them. It defines the cost of training, who provides the training and who is primarily responsible for remuneration.
The purpose of training agreements is to protect companies from loss when they invest in their team. This is not a tactic to prevent people from stopping. This is the reason why the amount of money that the training contract must recover must be an appropriate estimate of the money lost by the company. However, in some situations, small businesses also need to protect investments in their employees. L&D doesn`t always cost the world, but some courses or professional qualifications can be very expensive – if an employee leaves your company shortly after completing a training course your company has paid for, it could seriously get you out of your pocket. This is where a training reimbursement agreement comes in – it`s a way for companies to ensure they don`t lose financially when they pay for the development of their employees. If a training agreement has the practical effect of “capturing” an employee in their current role, it may be considered unenforceable. Before sending their team for training, many companies ask their employees to sign a training contract that makes them the responsibility to repay any investment in their training if they leave before a certain period. But if that employee stayed two years after the course ended and is training every day, then £2,000 is not a reasonable estimate of how much money the company has really lost.
In that case, it wouldn`t be appropriate to use a training contract to try to get the full £2,000 back – and most likely he wouldn`t be legally successful. Some training agreements operate on a kind of sliding scale where the longer the employee stays in the company, the less he has to repay if he decides to continue. In other companies, the training contract is a bit black and white, a certain cut-off point imposing when the employee is no longer responsible for refunds. If you`re looking for a template of training agreements that you can use in your small business, just click on this link….