However, in some situations, small businesses also need to protect the investments they make in their employees. D-D doesn`t always cost Earth, but some courses or job qualifications can be very expensive – if an employee ends up leaving his company just after completing a training that your company has paid for, he could seriously pull you out of your pocket. Let`s not forget – the success of your business depends on the people who run it. If there is a chance to help them improve their work, then it is helpful to take them. If the cost of the course is relatively low, the training contract could come from the employee`s last salary. If it costs more, employers could establish a more structured payment plan. Let`s take a look at an example of training chords in action. If a company spent US$1,000 on training, but the employee resigned the day after the course ended, it would be fair and reasonable to ask the employee to repay the US$1,000 as part of a training agreement. 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. 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. 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. If a training agreement has the practical effect of “capturing” an employee in his or her current role, it may well be considered unenforceable.