If you`re running a small business, it`s important to help your team grow and develop, but you also need to make sure that every investment you make in your team is protected. This is where a training agreement can help. In this article, we will show you exactly how to use a training contract and provide you with a free training contract template written by professionals. Let`s not forget that the success of your business depends on the people who run it. If there is a chance to help them improve in their work, then it makes sense to seize it. If the cost of the course is relatively low, the training agreement could come from the employee`s final salary. If it`s more expensive, employers could introduce a more structured payment plan. Here too, it is first and foremost important to find the right wording of the training agreement. The training agreement template we provided above will do the job in most cases, but sometimes you`ll need more specialized support.
If you need help creating a training contract, contact us to learn more about our recruitment consulting firm. If a training agreement has the practical effect of “catching” an employee in their current role, it may be unenforceable. But if that employee stayed two years after completing the course and took advantage of that training every day, then £2,000 is not a reasonable estimate of how much money the company really lost. In that case, it wouldn`t make sense to use a training agreement to try to get the entire £2,000 back – and most likely not to pass legally. If you are looking for a training agreement template to use in your small business, simply click on this link. This template was designed by our professional and qualified CIPD HR consultants who specialize in HR support for small businesses and startups. Some training agreements operate on a kind of sliding scale where the longer the employee stays in the company, the less he has to repay if he decides to continue. In other companies, the training agreement is a bit black and white, with a certain threshold that dictates when the employee is no longer responsible for reimbursements. However, in some situations, small businesses also need to protect the investments they make in their employees. L&D doesn`t always cost the world much, but some courses or professional qualifications can be very expensive – if an employee leaves your company shortly after completing training that your company has paid for, it could seriously leave you out. This is where a training reimbursement agreement comes into play – it`s a way for companies to ensure they don`t suffer any financial loss when paying for the development of their employees.
A training contract is a written agreement between an employer and his employee that sets out the terms of each training for which the company pays them. It determines the cost of the training, who provides the training and who is primarily responsible for it. The purpose of training agreements is to protect companies from losses when they invest in their team. This is not intended to be a tactic to prevent people from stopping. For this reason, the amount of money that the training contract is intended to recover must be a reasonable estimate of the money the company has lost. Properly concluded, training agreements are a completely legal and appropriate way for companies to protect themselves financially. However, if you decide to create one, there are a few things you should pay attention to. Not only might your company not benefit from the training it paid for in the short term, but it could also end up paying for the same training again if it hires a replacement. Consider the sunk costs inherent in every hiring process, and you can see how that could potentially put a small business in a really difficult position. Let`s take a look at an example of a training agreement in action. If a company were to spend £1,000 on a training course but the employee resigns the day after the course ends, it would be fair and appropriate to ask the employee to repay the £1,000 as part of a training agreement.