Training Contracts

System

Hi Guys,

Looking for some advice. My employer is willing to pay for my ACCA study, however, they want some sort of clause in the contract that says after x period of time if I leave I owe them x of the money they have paid out back.

Can anyone who is on a training contract give me an idea of what x is for you? They are looking for 2 years after qualifying which I think is excessive!!! However, this may be the norm, I don't know. Any advice would be greatly appreciated.

Thanks.

Susan

System

Re:Training Contracts

Not sure what "x" is but the 2 years after qualifying sounds about right.

Regards

Dean

System

Re:Training Contracts

Susan

If we leave within 3 years then we have to pay back anything within that 3 years. So 2 years is slightly better.

One thing to remember is that a new employee may reimburse the cost for you.

Em

System

Re:Training Contracts

Hi

My previous employer (i'm in industry) had a clause whereby if I left I had to pay back fees for any courses completed in the previous 6 months, 50% of any courses between completed in the previous 6 - 9 months and 25% of any courses completed in the previous 9 - 12 months.

Although my direct boss thought it was rather rubbish it was company policy. A policy that they dont give out till you join the company and that was partly repsonsible for me leaving within 6 months of starting, along with another colleague! My employment prior to that had no such clause.

Neil

System

Re:Training Contracts


My previous employer had a clause where if you left within 12 months of them paying for courses you had to pay back the costs.

My direct boss thought this was harsh and never enforced it but knew of other departments where it was enforced.

System

Re:Training Contracts

My contract states I have to remain with the company for 2 years afterwards, or pay back 50% of the cost.

If you do apply for another job and they decide they want you, what the new company may do is offer to pay part/all of the cost for you. This happened last year to someone who left.

It also states how many study days I can receive although this has now changed and is at the discretion of my manager ... yippee!

System

Re:Training Contracts

Hi Susan.

My training contract also states two years. If you get a different job you have to weigh up any salary increase against how much you have to pay back.

Scott.

System

Re:Training Contracts

Hi All

Thanks for your replies. The info was really helpful.

Much appreciated.

Susan

System

Re:Training Contracts

I've worked for 2 companies whilst doing my AAT.

The first, I had to pay 75% of the costs if I left within 1 year from completion and 50% if I left after 1 year but before 2 years had passed.

My current company policy is to pay back 100% of costs if I leave within a year of completion.

Luckily, when I left the first company, they could only find paperwork for foundation and I paid about £90! I also had a £3k payrise with my new job, so didn't mind forking out for it!

Like others have said, your new employer may take this cost on and you also have to think how much more you will be earning with your salary increase.

It's just the higher you get in your studies, the more it costs - hence why they want their monies worth and will charge you for it if you leave!

System

Re:Training Contracts

When I were a lass and studying (well, I feel pretty ancient and it was quite a few years ago now), I found that a lot of the companies I worked for didn't insist on any kind of repayment. However, one I worked for did and theirs was based on three years but it was ambiguous as to whether they meant three years from start or completion (I read it as from completion, but HR did it from start of course when I left so it didn't hurt me as much financially as I had expected).

Anyway, in later years, when I reached management status, we had a Sales Ledger Clerk ask us to help her with her AAT and I felt pleased that one of my members of staff wanted to improve and so we paid her fees. She went for the first two lessons and then gave up - couldn't be bothered!

When another clerk approached me to have her AAT studies sponsored, I was initially told no as the company were not prepared to see more funds possibly wasted. At this point, I negotiated a training contract on her behalf that resulted in 100% payback if she left or failed to attempt the exams, 75% repayable if she left after the exams but before the end of the first year and 50% if she left after the first year but before the end of the second year with nothing to repay after two years. This was seen as reasonable and in line with what other companies were offering.

Whilst I didn't like the fact that we had to have a contract, it was introduced because previous training had been abused.