Overland Airways Limited v. Captain Raymond Jam4 served as a turning point in the question of the applicability of training obligations. In this case, the National Industry Tribunal took into account the sponsorship conditions presented in two training obligations of an air carrier and one of its employees to determine the applicability of training obligations in the aviation sector. “Generally speaking, it is unusual and very difficult to recoup the training costs of an employee who leaves the company shortly after participating in the training,” said Don Schroeder, partner at Foley-Lardner, warning that the fight would be tough for most employers. Some training agreements operate in a kind of sliding scale, where the longer the employee stays in the company, the less he must be reimbursed if he decides to continue. For other companies, the training contract is a little black and white, with a set deadline indicating when the employee is no longer responsible for refunds. As a general rule, training obligations include a clause that allows the employee to repay the value of the obligation (the amount spent on the training of the worker) when that worker wishes to leave the employer`s service before setting the time specified in the obligation or the company. The details. The agreement should specify the costs of training, duration of training, duration of work, duration of work after training and obligation to repay.
A proportional repayment scale based on the length of employment after training is common. We are often asked to develop this type of agreement for employers and to determine whether they are applicable. As usual, the answer to the question of whether the agreement is applicable is that it depends on the circumstances and how the agreement was developed. The applicability of a training reimbursement agreement can really be questioned on two legal grounds: first, because it is a punitive clause and, second, because it limits trade. I will look at them one after the other. Before sending their team for training, many companies ask their employees to sign a training contract that is designed to reimburse investments in their training if they leave before a certain period of time.