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. 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. However, if the training contract is properly developed, it would be reasonable to expect the employer to recover a certain proportion of the $2,000. A training agreement is a written agreement between an employer and its employee, which defines the conditions of each training that the company pays for them. It defines the cost of training, who is successful in training and who is the primary culprit. 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.
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. 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. 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. 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 a training agreement has the practical effect of “capturing” an employee in his or her current role, it may well be considered unenforceable. However, it is important for employers that it can also be used to indicate when a worker might be responsible for reimbursement of these training costs and how that reimbursement would work. In particular, it can determine whether these costs are reimbursed when an employee leaves the company shortly after the end of the training. If you`re looking for a template for workout chords that you can use in your small business, just click on this link.
This model was designed by our professional, CIPD-qualified HR consultants who specialize in supporting small businesses and startups. 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.