Legal information on training contracts
Professional development is a type of adult education. It is designed to facilitate the retention, modification or expansion of professional skills and to advance an employee's career. In practice, further training for employees ranges from events lasting several hours to several days or seminars lasting several months to complete degree courses.
For employees, it is firstly in their own interest to achieve a release from work and still be paid. And secondly, to have the further education costs (potentially even travel costs) paid to a certain degree or even in full. Employers, by comparison, have an interest in their employees concluding the training successfully and that they stay with the company after completing the training so that the investment is worthwhile.
As always, if the interests of two parties are not the same, it is worth creating clarity in writing. Our free sample document and the following information will help.
Who bears the costs?
If the training is required or ordered, then the costs and the required time must be paid by the company. If it is voluntary, then it must generally be paid for by the employee.
How far can the provisions in a training and further education contract go?
- The contract must be reasonable. That means a tie to the company after completion of the training or further education must be limited with regard to time. For costly courses, a three-year tie is not excessive.
- Reimbursement clauses are permitted if the training would also benefit the employee at another company. In other words: If the employee does not stay with the company for the entire agreed term after conclusion of the training, then they must pay back a part of the costs.
- Pro rata reimbursement agreements are customary. The agreement may stipulate that the amount to be repaid increases the earlier the employee dissolves the agreed term.
- It is allowed to contractually agree a repayment if the training is not finished or if it is failed.
In our document, you will find important legal information and a sample further education / training agreement.