Training Agreement Sliding Scale

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. When you run a small business, it`s essential to help your team grow and grow – but you also need to make sure that any investment you make in your team is protected. Here, a training contract can help. In this article, we show you exactly how to use a training contract and provide you with a model training agreement written free of charge. Starting in April 2020, all employers will be required to include the details of the worker`s training in their Section 1 accounts as part of the correct work plan, and this should include, if any, all amounts they will have to repay. As a result, employment contracts should include a clause outlining all reimbursements covering training costs. For refunds to be legal and not considered a punitive clause, they must be fair and reasonable and accurately represent the value obtained by the employer. In some cases, the fees you want to recover from the employee will be higher than their last salary, so what can you do? If you feel that the training costs will be significant, it may be worth asking the employee to sign a separate agreement before he or she teaches the course. The agreement may contain a folly that if their last payment does not cover the sums due, you reserve the right to recover the sums by a debt. Read below our excerpt from a training reimbursement clause: here too, it is above all a question of maintaining this balance properly.

The training agreement model provided above will do the job in most cases – but sometimes you need more specialized assistance. If you need help developing a training contract, contact us with our human resources consultant. For example, if an employer sends someone on a course that costs the employer $2,000 and the worker leaves his or her job immediately after the end of the course, the employer has not benefited from his investment and could, through a duly drawn-in agreement, legally recover the $2,000. However, if the worker left his or her job after 3 years, then the employer clearly has the benefits of the training for 3 years, so that if they try to recover the $2000, that would be unenforceable, because it would not reflect the loss of the employer. It would probably not be applicable either, given that these are trade restrictions, and we will look at that below. However, if the agreement is properly developed, the employer can generally recover some of the costs of a magnitude that decreases over time, so that after one year after the price closes, for example, they must repay 50% and nothing after 2 years. The numbers on the sliding scale depend on the costs associated with them, and we can discuss them when developing agreements.

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