Where an employer provides financial support for an employee's tertiary studies which are not required for the employee to do their current job, is it reasonable to have an agreement whereby the employee repays this if they leave within a certain period of time?
If so, what is reasonable?
I should stress that this additional study is not something we require the employee to undertake, but we are prepared to provide some financial assistance.
DaveG
With the model you are talking about - it depends on what was indicated to the employee at the time and the expectaction - ie the training whilst not for current job, does set them up for a future job in the company - therefore its an investment. The risk with asking for repayment even if it is written within an agreement that if they leave within 3 months it still will leave a bad taste with the employee which they in turn start to talk down the company.
Another model is to have the employee pay up front for the course fees - once they have passed the semester they can be reimbursed upon demonstrating appropriate paperwork - this alleviates the need to ask for repayments. If repayment is to be written into a contract then "within 3 months" is a reasonable timeframe.
Thanks for your response aking. Perhaps I should be more specific.
The employee has already been with us for a couple of years and there is nothing in the employment agreement which requires us to make a contribution nor is there any expectation set. However the individual is a valued employee which is why we are looking to help out by paying a substantial proportion of the course fees. The course in question is a 3 year Masters degree course.
While the study is relevant to the work that the individual does, it is certainly not required for the individual to progress in the organisation. We do however fear that the qualification will make the individual more attractive as an employee to other organisations and by attending lectures the individual will become more exposed to potential approaches by other employers.
The employee cannot afford to pay for the course up front and if we do not contribute towards the course costs, the individual would utilise the HECS scheme.
Maybe we're just a bit paranoid, but having spent thousands of dollars on specialist training in the past only to have an employee head hunted away within a few months we would like to take some steps to be compensated if it happens again.
In my experience, 12 months after the date in which payment has been made for course fees for an employee to remain with the organisation is reasonable.
If the employee leaves during this period, we require the employee to pay a prorata amount of the course fees that we have paid. This agreement has been written up prior to any money being exchanged.
The other thing we also do is require that the employee provide their certificates as proof that firstly they are attending/participating in the course but also to prove that they have passed the subject.
We're not concerned that the individual will not attend classes or participate in the course, and we don't require them to pass, because it is not something which we require. However, remaining with the company for 12 months after completion is exactly the period we had in mind.
Commitment in return for study support
Linear Mode
