Employer-sponsored training and repayment agreements – what should be considered?
In a time when the demands on employees are constantly increasing, further education and training are an important tool for increasing one's own market value and for continuing to be successful in the working world in the future. However, these further training courses are often also financed by the employer in order to increase the qualifications of the employees and thus make their own company more competitive. But what happens if an employee leaves the company after completing the training? Do they have to repay the costs? And what should be considered in this regard?
In principle, it is possible for an employer to demand that an employee repay the costs of employer-funded training if this has been contractually agreed in advance. This is known as a repayment agreement. Such agreements are generally permissible and do not violate the employee's freedom to practice his or her profession. However, there are some formal and substantive requirements that must be observed.
One important requirement is that the cost items of the training are broken down as precisely as possible. In addition to the actual course costs, this also includes possible exemption allowances during the training, travel costs, accommodation costs and other related costs. The employee must know exactly what to expect financially. If the breakdown is too rough, the agreement may be invalid.
Furthermore, the repayment agreement must have a reasonable commitment period. If the commitment period is too long, the agreement may be invalid and thus no money can be reclaimed at all. Case law has only established rough guidelines here, and it always depends on the individual case. The timing of the training (during and/or outside working hours), how expensive it was and what professional advantages it brings all play a role. The ratio to the monthly gross salary also plays a role here.
Another important aspect is the employee's loyalty to the company after completing the training. The longer the employee remains with the company, the lower the repayment amount may be. If the employee remains with the company for a period of one year, the monthly repayment amount must be reduced by 1/12 as agreed. Otherwise, the agreement is also invalid.
In addition, the employer can only demand repayment if the employee is responsible for the premature termination of the employment relationship or the training. If the employment relationship is terminated within a certain period of time after completion of the training for reasons for which the employee is responsible, or if the employee does not successfully complete the training program for the same reasons, repayment may be considered.
The statements represent initial information that was current for the law applicable in Germany at the time of initial publication. The legal situation may have changed since then. Furthermore, the information provided cannot replace individual advice on a specific matter. Please contact us for this purpose.