Training Binding Agreement

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. 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. The law provides that a contracting party of the other party in the event of a particular event, for example.B. of a breach or departure of a worker, must pay a specified amount, only if the amount that the party is to pay is a true forecast of the loss of the other party. With regard to the impact of this doctrine on an agreement to reimburse training costs, the employer is required to show that the amount it charges the worker to reimburse is a true forecast of his loss. 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. If you`re running a small business, it`s important to help your team grow and grow – but you also need to make sure that any investment you make in your team is protected. Here, a training contract can help. In this article, we show you exactly how to use a training contract and we provide you with a free and professional training agreement template. The second thing to think about when using training agreements is the idea of « trade restriction ».

As I said, training agreements are supposed to protect companies from losing their investments – but the law will not allow an employer to use them to prevent someone from changing jobs inappropriately. In the context of the contractual freedom of the economic parties, depreciation clauses are in principle possible within the framework of or in addition to an employment contract as long as the principles of fairness and adequacy set out in civil law are not violated. However, given the power imbalance between employers and workers, the possible scope of depreciation clauses is generally limited by formal provisions of different types, including labour laws, decisions of competent courts (in particular labour courts) or collective agreements binding at sectoral or regional level (Note: most labour laws allow changes to sectoral rules through collective agreements or on: Enterprise level). if the conditions for workers are more favourable than those laid down in national legislation). 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. We are often asked to design this type of agreement for employers and advise us on their feasibility. As usual, the answer to the question is whether the agreement is applicable, whether it depends on the circumstances and how well the agreement was drawn up.

The applicability of an agreement to reimburse training costs can be really called into question on two legal bases: firstly, because they constitute a penalty clause and, secondly, because they hinder trade. I`m going to look at each of these data one after the other. .