Training costs refund

Employers and employees have the possibility of establishing a payback clause within limits set by law. The employer and the employee need to agree and sign a written agreement on the payback clause prior to the training. According to the legal framework, training costs are only eligible for reimbursement by the employee if the training increases the earning power of an employee in the labour market. Firm-specific training is therefore excluded. As compensation for employer-provided/financed training, employees can commit themselves to stay in the company for an agreed period or provide compensation for the incurred training costs. According to the Labour Code, the retention period must not exceed 4 years (8 years in specific cases, e.g. very costly training, such as pilot training). Upon an employee's voluntary termination of the employment contract before the agreed period, the employer may recover (part of) the training costs from the employee. The amount to be repaid decreases over time.