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Training Cost Agreement Australia

Ideally, the employer wants the right to deduct any training costs from wages liability to the employee. If this is the case, this right must be explicitly established in writing, otherwise there is a risk of illegal deduction of wages. After the end of the internship, the employee continued to work a few weeks before the end of the internship and paid adult wages. . It was found that the termination of employment took place after the end of the internship and that, therefore, the exclusion from the training agreement did not apply. However, it is important for employers that it can also be used to indicate when a worker might be responsible for reimbursement of these training costs and how that reimbursement would work. In particular, it can determine whether these costs are reimbursed when an employee leaves the company shortly after the end of the training. An employee`s obligation to reimburse the worker`s training costs may be contrary to the Fair Work Act 2009 (Law). If your company is interested in recovery training fees in the future, contact Akyra Strategy and Development for non-binding advice. Become an employer of choice, with the help of Akyra! Is it legal for an employer to claim reimbursement for training costs? The short answer is “yes,” provided there is a properly developed agreement. At the end of the day, there is nothing to stop you from asking your employee to pay for their own training. However, if the employment contract does not contain a training agreement or the award agreement or modern enterprise underpins it, the employee is not legally obliged to reimburse you for the training. But if that employee stayed two years after the end of the course, using this training every day, then $2000 is not a reasonable estimate of the money that the company has really lost.

In that case, it would not be wise to use a training agreement to recover the full $2,000 — and it is very likely that it would not be legally successful. The training agreement should stipulate that if an employee resigns within a specified period of time after the end of paid training, he must repay a certain amount to the company. The second thing to think about when implementing training agreements is the idea of “trade restriction.” As we have already said, training agreements are designed to protect businesses from losing their investments – but the law will not allow an employer to use them to unreasonably prevent someone from changing jobs.