Training Clawback Agreement

In some cases, there will be a “catch all” clause in the employment contract, which reserves the employer`s right to deduct money when it leaves the worker when it completes the training paid for by the employer. Such clauses may be general. The second thing to think about when implementing training agreements is the idea of “trade restriction.” As we have already said, training agreements are designed to protect businesses from losing their investments – but the law will not allow an employer to use them to unreasonably prevent someone from changing jobs. In some cases, the cost to the employee, when a company recovers the training costs, can be thousands of pounds, and without exception, it is much more than the money available to withdraw the employee. This creates other problems. Interest in an employer`s ability to recover the cost of training from a worker whose employee leaves the company shortly after the end of the training has increased considerably. The idea of recouping training costs is not new, but the high cost of training, coupled with workers` desire to improve and improve their careers to make them more attractive in the labour market, is an important factor in making this issue high on the agenda. However, it is important for employers that it can also be used to indicate when a worker might be responsible for reimbursement of these training costs and how that reimbursement would work. In particular, it can determine whether these costs are reimbursed when an employee leaves the company shortly after the end of the training. What happens if this employee, after paying large sums for staff training, files his dismissal? The Caldecott Foundation invests considerable resources in training to ensure that when an employer agrees to send an employee to training and/or finance through education or qualifications, the employer`s willingness to fund the training depends on the worker`s willingness to sign a course fee recovery agreement if he decides to leave. Not only would your company not be able to benefit from paid training in the short term, but it could also, in the end, pay again for the same training if it makes a replacement. Factor in the lower costs inherent in any recruitment process and you can see how this could possibly leave a small business in a really difficult position.

It is an agreement between the employer and the worker to recover the training costs so that the employer pays for the training and the employee agrees to reimburse the training costs if he decides to leave within an agreed time frame.

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