Training Contracts - Is There a Standard?

Indentured Servant asks: "My company has recently started using training contracts, which we are required to sign before we go off for various training classes required to do our jobs. In a nutshell, the contracts hold us liable for the entire cost of training, all of it, for a full 12 months after the classes." Odd. I was always under the impression that the on-the-job training bill was footed by the employer. Why the sudden change of heart? An employee in debt due to such a company policy will not be a very happy employee.

"Is this normal? It looks like they are trying to annoy us into seeking employment elsewhere, but I may just be taking it wrong. Also, we asked if they would make it pro-rated, and they said nope, 100% of the cost, for 12 months.

I'm actually a bit spooked. I can imagine going off to training at least once a year, if not more often, which would mean that I'll always owe money, whenever I leave, even if years from now. I'm only making 30-40K range, and these training classes could total a significant fraction of my annual take-home pay.

Anyone have experience either writing or signing these types of contracts?"

Comments

This is getting very common...

[NetJunkie]

Companies are tired of paying to send employees to training only to have them get more qualified because of it and running off to another job. I don't think it's that much to ask. They invest time and money in to you and expect something in return. You don't have to go to training..you can work elsewhere.

A year isn't bad. I know one of my employers required you to stay for 3 years if they put you through the complete MCSE training. Figure the complete classes, 6 of them, at about $2K each. I can understand them not wanting to lose the $12K they just invested. But, at that company people refused to sign the contract and it was eventually dropped.

I'd be surprised if that was enforceable.

[AndrewD]

You'd have a job enforcing that provision under UK law, and if insisted on it'd likely amount to constructive and unfair dismissal.

It comes to this: in return for paying for your training, they're asking you to accept that you'll pay a penalty if you quit within twelve months.

Most places, you can't get specific performance of a contract of employment, not least because it violates anti-slavery laws. I think you could make a convincing argument that imposing this as a penalty is unenforceable for that reason: local law may differ (you don't say where you are, but I imagine you could get a local lawyer to pontificate for half an hour on the subject for very little money indeed).

Another possibility is that you could ask for a similar sort of penalty to be payable by the company during that period if they fire you for any reason. Insist that turnabout is fair play, and all.

Or, point out that they're trying to protect themselves against the flexibility of the labour market in your field. Point out further that their only remedy if you refuse to sign is either to fire you (which gets them to the same result) or to refuse you the training (in which case you polish up the interview skills for another job, again getting the same result.

Essentially, the only way they get to keep you is by keeping you happy, and proceed to specify how that happiness might be achieved (say a bonus of 2(x+1), where x is the sum you'd really accept - leaving room to be beaten down in negotiation, payable on the completion of n/2 months service, where n is the number of months you see yourself staying there, again with room to negotiate up to where you'd accept).

If they're dim enough to deny the essential logic of this situation (it's a seller's market for serious skills), ask yourself whether you really wanted to work for them anyway.

All of the foregoing is a lot more plausible if the entire workforce is indulging in variations on the same theme.

After all, you don't have to be in a union to organise...

Final caveat: any and all of the above, if acted on, could cost you money. Consult a lawyer qualified to practice your local law for specific advice on your specific circumstances. A hint on cost: if there are several of you in the same situation, go to the same lawyer and split the cost. Get a quote as to fees in advance, and go prepared with a list of specific questions you want answered. Take it from me, clients who do this get good service: everyone likes dealing with smart, thoughtful clients.