Training Agreements: Understanding the Legal Aspects
In today’s competitive world, employee training and development is the backbone of any successful business. It is an investment that not only benefits the employees but also the company as a whole. However, many companies fear that once they invest in employee training, the employees might walk out with the newly acquired skills, leaving them to start all over again. Training agreements help to mitigate this risk by establishing certain legal obligations between the employer and employee.
What is a training agreement?
A training agreement is a legally binding contract between the employer and employee that outlines the terms and conditions of employee training and development. This agreement establishes the rights and obligations of both parties during and after the training period. It typically covers issues such as payment of training costs, the length of the training program, reimbursement of costs if an employee leaves the company, and non-competition and non-solicitation clauses.
Are training agreements legal?
Yes, training agreements are legal as long as they are reasonable and do not contravene any laws. The law recognizes that employee training is an investment in human capital that benefits both the employee and employer. However, the employer is within their rights to seek protection for their investment in training employees and to ensure that the employees do not use their newfound skills to compete or solicit clients from the organization.
What should a training agreement include?
A training agreement should include the following:
1. The purpose of the training – This sets out the training objectives and the skills that the employee is expected to acquire.
2. The duration of the training – This outlines the length of the training program, the expected start and end dates, and any specific training milestones.
3. The cost of the training – This outlines who is responsible for paying for the training, the payment schedule, and any reimbursement clauses.
4. The non-competition and non-solicitation clauses – These clauses protect the employer from employees who may leave the company and use their newly acquired skills to compete or solicit clients from the organization.
5. The consequences of breaching the training agreement – This outlines the legal and financial consequences of breaching the training agreement by either party.
Conclusion
A training agreement is a useful tool for both employers and employees. It helps to protect the employer’s investment in employee training and development while providing clear guidelines for the employee’s training objectives. By understanding the legal aspects of training agreements, employers can ensure they are using the best practices to protect their investments and retain their employees` loyalty.