Payback clause

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Name of the instrument - Local language
apmācību izdevumu atlīdzināšana darba attiecībās
Name of the instrument - English translation
Payback clause
Scheme ID
247
Country
Latvia
Reporting year
2020
Type of instrument
Payback clause
Sub-type of instrument
Payback clauses are possible with no explicit limitations
Type of entry
Single instrument
Short description

Employers and employees may conclude a payback clause in relation to employer-provided/financed training which is necessary to the performance of the employee's duties. Training costs can only be subjected to a payback clause if they exceed the minimum wage. The duration of the payback contract must not exceed 2 years from the end of training. The amount to be reimbursed by the employee should not exceed 70% of the total costs of training.

Level of operation
National
Name of a part of the country
Not applicable
Name of the region (for regional instruments)
Not applicable
Name of the sector (for sectoral instruments)
Not applicable
Relevance
Key instrument
Labour Law
Objective(s) and target(s)
No specific objectives for this norm of Labour Law are defined.
Year of implementation
2015
Operation/management
The State Labour inspectorate is responsible for overseeing the correct implementation of the norm.
Eligible group(s)
All employers
Group(s) with preferential treatment
No preferential treatment
Education and training eligible
Any job-related formal and non-formal education and training, including: p Programmes leading to a formal qualification (formal education) of ISCED 6-8 level; - general courses (e.g. language courses); - occupational courses connected to the present economic activity of the participant; - occupational courses of all kinds; - Any kind of non-formal education/courses (e.g. for private issues only).
Source of financing and collection mechanism
Employer funds training, the employee provides (partial) repayment eligible training costs in case of premature departure from the company
Financing formula and allocation mechanisms
Training costs can only be subjected to a payback clause if they exceed the minimum wage and if the training is undertaken is necessary but not essential to the performance of the employee's duties (the costs of essential vocational training directly related to the employee's particular position must always be borne by employer). The duration of the payback contract must not exceed 2 years from the end of the training. The amount to be reimbursed by the employee should not exceed 70% of the total costs of training. The procedure of the payback clause is not regulated.
Eligible costs
Eligible costs are training costs. The details have to be agreed upon between the employer and employee.
Volumes of funding
Evidence on the use of payback clauses is not sistematically collected.
Beneficiaries/take up
Not available
Organisation responsible for monitoring/evaluation
Not applicable
Monitoring/evaluation reports available
Not available
Most relevant webpage - in English
https://likumi.lv/ta/en/en/id/26019-labour-law
Most relevant webpage - local language
Not available
Recent changes

No recent amendment

Recent changes in response to COVID-19

No changes

Sources
https://likumi.lv/ta/en/en/id/26019-labour-law
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