12 Oct Training Costs Agreement Uk
If the cost of the course is relatively low, the training contract could come from the employee`s last salary. If it`s more expensive, employers could establish a more structured payment plan. The reimbursement of training costs once again made headlines. Last year, it was Capita and FDM Group that reported that they charged up to £20,000 to employees who left their training department, for an amount of up to £20,000 for a fee of up to £20,000. Capita admitted that his practice was illegal. This year, a Costa Coffee franchise, run by Goldex Investments Essex, was accused of making unfair deductions from former employees. 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. A well-trained workforce is in the interest of all — employers, workers and for the good of the economy as a whole. Employers have long invested considerable sums in training their employees, but since the cost of training is increasing and employees tend to change jobs more often than in the past, many employers are reluctant to invest significant amounts of money in employee training, which then move forward and can allow a competitor to benefit from the skills, that the employee has acquired. One way to reduce the risk of workers leaving courses shortly after taking courses or, at the very least, to reduce the financial cost of leaving is to require the worker to reimburse some or all of the training costs to the employer.
To remedy what some employers might consider an injustice of this situation, it is increasingly common for employers to try to cover these costs by workers who withdraw shortly after such training. The usual method is to include in the employment contract a repayment provision where the training costs are “considered” as a loan to the repayable worker if the worker leaves the employment relationship within a specified period of time after the completion of the course or training. If a training agreement has the practical effect of “capturing” an employee in their current role, it may be considered unenforceable. The agreement should also include a rolling reimbursement scale, under which the amount to be reimbursed will be reduced according to the length of time the worker will remain with the employer at the end of the training. Similarly, training costs must be reimbursed on the same step scale when the worker is dismissed for serious misconduct during the reimbursement period. The purpose of training agreements is to protect companies from loss when they invest in their team. This is not a tactic to prevent people from stopping. This is the reason why the amount of money that the training contract must recover must be an appropriate estimate of the money lost by the company.
Here too, it is important above all to find this balance in order to obtain the correct formulation of the training contract. In most cases, the model proposed above for training conventions does the job, but sometimes you need more specific support. If you need help creating a training contract, contact us to learn more about our human resources advice. If you`re running a small business, it`s important to help your team grow and develop – but you also need to make sure that any investment you make in your team is protected. . . .