This includes all the conditions under which the agreement is applied. For example, in the case where a company offers the employee training to improve his or her job performance offered by a third party. Second, if the organization offers external training to the employee, hoping that the employee will stay there for a while. In addition, it may also be stated in this section that the agreement on remuneration for employee training does not refer to the employment contract. Finally, a case in which the employee is only guaranteed to benefit from the training if he agrees to stay in the company for a certain period of time and agrees to reimburse any training costs in case of departure. The second thing to consider when using training agreements is the idea of ”restricting trade”. As mentioned earlier, training contracts are designed to protect companies from losing their investments – but the law does not allow an employer to use them to inappropriately prevent someone from changing jobs. Considering that International Communication Solutions offers such training to ”employees”, in the hope that the ”employee” will continue to be an employee of the organization for at least (2) years, so that he or she benefits from the investment in employee training; Before sending their team for training, many companies ask their employees to sign a training agreement that requires them to repay any investment in their education if they leave before a certain time. If a training agreement has the practical effect of ”catching” an employee in their current role, it may be unenforceable. Employee training can be an expensive undertaking. Nevertheless, it helps to improve their working skills for better performance. If employees decide to leave the organization, an employer may require them to reimburse the training costs. However, this can only be done effectively if there is a well-designed compensation agreement for employee training.

Let`s learn how to make an effective agreement to reimburse the training. Then, the company must define the reimbursement plan for its employees based on when they leave the organization, from the moment the training is completed. Conditions that the agreement covers or can be applied Some training agreements operate on a kind of sliding scale where the longer the employee stays in the company, the less he must repay if he decides to continue. In other companies, the training agreement is a bit black and white, with a certain threshold that dictates when the employee is no longer responsible for reimbursements. A training contract is a written agreement between an employer and his employee that sets out the terms of each training for which the company pays them. It determines the cost of the training, who provides the training and who is primarily responsible for it. Not only might your company not benefit from the training it paid for in the short term, but it could also end up paying for the same training again if it hires a replacement. Consider the sunk costs inherent in every hiring process, and you can see how that could potentially put a small business in a really difficult position.

Learn about the content and example of an employee training reimbursement agreement that you can use. However, in some situations, small businesses also need to protect the investments they make in their employees. L&D doesn`t always cost the world much, but some courses or professional qualifications can be very expensive – if an employee leaves your company shortly after completing training that your company has paid for, it could seriously leave you out. This is where a training reimbursement agreement comes into play – it`s a way for companies to ensure they don`t suffer any financial loss when paying for the development of their employees. Content of the Employee Training Reimbursement Agreement This Employee Training Reimbursement Agreement is entered into by and between International Communication Solutions and (employee name). International Communication Solutions and the ”Employee” agree that this Agreement does not constitute the Employment Agreement. If you are looking for a training agreement template to use in your small business, simply click on this link. This template was designed by our professional and qualified CIPD HR consultants who specialize in HR support for small businesses and startups.

Although the ”Employee” understands that International Communication Solutions would not provide such training unless the ”Employee” intends to remain an employee of International Communication Solutions and agrees that he will reimburse all training costs incurred by the Company if the ”Employee” terminates the employment relationship before the end of the 2 years following the end of the Training. 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 resigns the day after the course ends, it would be fair and appropriate to ask the employee to repay the £1,000 as part of a training agreement. whereas International Communication Solutions has agreed to offer external training on the ”employee name”, which, according to International Communication Solutions, will help the ”employee” to improve its services to its customers; But if that employee stayed two years after completing the course and took advantage of that training every day, then £2,000 is not a reasonable estimate of how much money the company really lost. In that case, it wouldn`t make sense to use a training agreement to try to get the entire £2,000 back – and most likely not to pass legally. However, if the training contract is properly drafted, it can reasonably be expected that the employer will receive a certain proportion of the £2,000 return. Employer-employee statement – This includes at least one sentence indicating that the employee and his or her employer have entered into an agreement. Properly concluded, training agreements are a completely legal and appropriate way for companies to protect themselves financially. However, if you decide to create one, there are a few things you should pay attention to. .