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Agreement To Repay Employer

But if that employee stayed two years after the end of the course, using this training every day, then $2000 is not a reasonable estimate of the money that the company has really lost. In that case, it would not be wise to use a training agreement to recover the full $2,000 — and it is very likely that it would not be legally successful. It is not so unusual for employers to require workers to pay back their training or other wages that the employer incurred on its behalf when they leave their jobs. From time to time, an employee will argue that this type of clause is a punitive clause and therefore is not applicable. However, a clause is interpreted as a penalty only if: in order to avoid the refund clause being a penalty, employers must bear in mind that this is where a training reimbursement contract is concluded – it is a way for companies to ensure that they do not lose financially in the payment of their employees. Training agreements are a perfectly legal and appropriate way for companies to protect themselves financially. However, if you decide to wear one, there are a few things you should watch out for. Training agreements are designed to protect companies from dementers when they invest in their team. It is not intentional to be a tactic to distract people from the intention to stop.

That is why the amount of money that the training agreement wants to recover must be a reasonable estimate of the money the company has lost. In some cases, employers try to recover the cost of “workplace” training, which is much more difficult for them to quantify. It has been reported that some large companies, such as Capita and FDM, bring some employees through training programs that cost very little, but the company requires people to leave their jobs after the end of the course to pay back much larger sums, allegedly up to $18,500. On the face of it, it would be a punitive clause and also a commercial restriction and therefore illegal and unenforceable. We understand that there is a legal challenge to these types of clauses.

Megan posted this on 4/8/21 in Uncategorized.