study fee sponsered by employer

simply simple

My employer sponsored half of the fees for the post graduate course. I have signed a contract that says if I leave in 2 years after completion of the course I have to pay them back. I am thinking of leaving the job soon after completing my course. I wonder what if I cannot pay back the amount. Are these kind of contracts common? and how seriously people take this kind of contract in practice?

tatli_lokma

Yes they are very common and very understandable. Why would they pay to train you for the benefit of another employer? Of course they are going to want to get some value from it.

If you leave expect your final wages to have as much of the money owing deducted. If you owe more than that they maz decide to take legal action depending on the amount. They also will be highly unlikely to give you a reference.

And if they get wind of your intention don't be surprised if it has serious ramifications.

Sugar Free

Little Ted wrote: »

Yes they are very common and very understandable. Why would they pay to train you for the benefit of another employer? Of course they are going to want to get some value from it.

If you leave expect your final wages to have as much of the money owing deducted. If you owe more than that they maz decide to take legal action depending on the amount. They also will be highly unlikely to give you a reference.

And if they get wind of your intention don't be surprised if it has serious ramifications.

+1

It's one thing to only give three weeks notice when your contract says four; it's still a bad idea but not the end of the world.

However, if your employer has invested several thousand euro in your development, they will certainly pursue you for this money. Especially if you signed a contract agreeing to it!

freeze4real

I was actually talking to my bro about this, can you not join the company in another location e.g in UK/USA if possible.

Arciphel

It's not that big a deal. Get your next employer to pay the fees to you so you can reimburse your previous employer. Remember, if you employer has claimed tax back from forwarding you the academic fees it gets complicated if they have to repay that, so they may not bother. Likewise, if you have to repay the fees you are entitled to claim back the tax.

tatli_lokma

Arciphel wrote: »

It's not that big a deal. Get your next employer to pay the fees to you so you can reimburse your previous employer. Remember, if you employer has claimed tax back from forwarding you the academic fees it gets complicated if they have to repay that, so they may not bother. Likewise, if you have to repay the fees you are entitled to claim back the tax.

are you serious? A new employer is not likely to take on a debt for you when they have no proof that you won't do the same to them.

Pythia

Little Ted wrote: »

are you serious? A new employer is not likely to take on a debt for you when they have no proof that you won't do the same to them.

In my area they will... Your current company will almost certainly claw back fees, my current company does and my last one does too. It makes sense. If you can't pay it back, they will take as much as possible from your final cheque and then ask to agree a payment plan of some kind.

My friend has just moved jobs and her new company is reimbursing her for the clawback.

Arciphel

Little Ted wrote: »

are you serious? A new employer is not likely to take on a debt for you when they have no proof that you won't do the same to them.

My current employer would beg to differ. And they are funding me to do a course at the moment.

pow wow

Those clauses are fairly standard in roles where they require you to do additional formal training. Whether they actually remember to ask for the money back is another thing - my employer didn't when I left and naturally I never mentioned it either.

Bandana boy

pow wow wrote: »

Those clauses are fairly standard in roles where they require you to do additional formal training. Whether they actually remember to ask for the money back is another thing - my employer didn't when I left and naturally I never mentioned it either.

I know of a colleague who left and claimed that they could not pay an outstanding 12K in training fees ,the company took him to court won and he got landed with a further 8k in costs.

pow wow

12k is a pretty hefty sum in anyone's book. Mine was closer to the 4k mark.

tatli_lokma

So it seems it depends on the industry and nature of the course. But I must say, although there are stories here of people not having to repay, I would say there are just as many people who have not been so lucky. I know in the industry I work in, there is no way it would be overlooked. And I would say that it is highly unlikely that we would take someone on and agree to pay for the remainder of their fees - given that they cannot even apply for any additional training (other than the standard training when they start) until they have completed probation.

I think the fact they have asked OP to sign a contract initially and give 2 years as the stipulation (not even 1, but 2) would indicate to me that they might pursue the matter.

If you do wish to leave and can't pay the remaining fees upon departure, I am sure they will be agreeable to making a payment schedule which you can start to pay back once you start in the new job.

statss

just to weigh in :

job paid 9kish in courses for me, I signed a distinct contract to say I would pay them back if I left in a certain time (this was an additional contract separate to main employment contract)....got approached by another company, discussed it current place, they agreed it was a good move for me....I factored in paying back the 9k, but existing job didn't ask for it back....so my advice is if you handle the leave in a professional manner they may not insist on it back. I was surprised, but delighted. I would never have dreamt of asking my new place to pay the debt, that's ridiculous.

Arciphel

statss wrote: »

I would never have dreamt of asking my new place to pay the debt, that's ridiculous.

Is paying back nine thousand euros because you haven't got the courage to ask a question during career negotiations ridiculous? :cool: