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ARTICLE · 28 NOVEMBER 2012

Pre-Resignation Training Costs Not Recoverable

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Can employers who require employees to undergo training to upgrade their skills as part of their employment then seek reimbursement from the employee if the employee subsequently resigns?

CanadaEmployment and HR
Jennifer Shepherd
Jennifer Shepherd
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Can employers who require employees to undergo training to upgrade their skills as part of their employment then seek reimbursement from the employee if the employee subsequently resigns? As seen in the Alberta Arbitration  First Truck Centre Edmonton Inc. v. Christian Labour Association of Canada, Local 56 (PDF), the answer to this issue will depend on whether the employer clearly communicated to the employee that he or she would have to repay the employer if he or she resigned.  

Background to the Dispute

The dispute involved First Truck Centre Edmonton Inc. and Christian Labour Association of Canada, Local 56 (the "Union") on behalf of Union members Bill Thomson and Marco Roy (the "Employees"). The dispute was over deductions First Truck made to the Employees' final pay cheques to reimburse itself for costs it had expended to upgrade the Employees' training. The Arbitrator was asked to determine whether First Truck was (1) permitted to make those deductions

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