Watch our short video on training cost agreements for more detail
Do you need training cost agreements?
How will you recoup your investment if they leave?
You must have a signed agreement to deduct money
Dear CUBE HR, I’ve been asked by an employee to help fund a business qualification. It’s a lot of money involved and it will benefit the business in the long run, but I’m not sure I feel comfortable making such an investment. What if they leave once I’ve paid for it all?
This is where a training cost agreement is important. You put in place a formal arrangement that clearly states how much money you’re investing and for what purpose, how long you expect the employee to remain in their job and how much they have to reimburse you if they leave. You normally do this on a sliding scale, but it depends on the value of the qualification.
You might want to say if they leave in year one, they need to repay 100%, year two 75%, year three 50% and so on.
You also need to make sure any training cost agreements allow for you to make deductions from your employee’s wage. If they leave and they owe you money, you can take it out of their final pay.
You also need to have instructions as to how they should go about returning money to you if there isn’t enough in their wage to cover it.
The document needs to be signed by you and your employee, and you should give your employee a copy as well.
Do you have questions about training cost agreements?
Give us a call at CUBE HR, we’ll be happy to advise you and we have policies and templates available to meet every HR need.
Why not check out our other blog on the same topic Training and Development – 3 Things You Should Know
You can also watch a range of other videos on our YouTube channel