Costs For Further Training: Beware Of Repayment Clauses

Employers are often willing to provide employees with further training. Such financial support is typically motivated by the expectation that the knowledge and/or skills acquired by the employee will inure to the benefit of the company in the future. However, if the employee leaves the company shortly after or even before the training is completed, the employer will understandably wish to be paid for the costs it incurred for the training. This article reveals the limitations surrounding an employer's claim for reimbursement.

The Necessity of an Agreement

The employer and employee must first agree upon the employee's obligation to reimburse the employer for the cost of further training if the employee leaves the company within a certain period of time, since there are no legal presumptions leading to the automatic duty of repayment. The agreement should be in writing and signed by both the employer and the employee. Whether the agreed-upon repayment obligation is