Payback clause
- Name of the instrument - Local language
- Mokymo išlaidų atlyginimas
- Name of the instrument - English translation
- Payback clause
- Country
- Lithuania
- Reporting year
- 2015
- Type of instrument
- Payback clause
- Type of entry
- Single instrument
- Short description
The Lithuanian Labour Code includes a general clause on reimbursement of training costs incurred by the employer in case the trained employee resigns from employment without a valid reason and before the end of the agreed binding period. Other reasons for applying payback clauses are: dismissal due to a serious contract break and non-termination of the training. The timeframe for reimbursement and the amount/share to be reimbursed depend on the cost of the training and the time elapsed between the training and the termination of the contract. Employees can be required to reimburse not only the fees and payments for training courses but also direct and indirect labour costs.
- Short description of the related instruments
nap
- Level of operation
- National
- Name of a part of the country
- nap
- Name of the region (for regional instruments)
- nap
- Name of the sector (for sectoral instruments)
- nap
- Relevance
- Key scheme
- Legal basis
Lithuanian Labour Code (of 4 June 2002) , 95th paragraph, part 5
- Objective(s) and target(s)
To protect the employers from the potential losses of investments in training of employees, when the latter decide to change employer.
- Year of implementation
- 1992
- Year of latest amendment
- 2005
- Operation/Management
National regulation; possible further agreements at company level.
Ministry of Social Affairs and Labour together with the national labour inspection is responsible for the supervision of the implementation of the norms and stipulations foreseen in the Lithuanian Labour Code.
- Eligible group(s)
All employees and employers
- Group(s) with preferential treatment
None
- Education and training eligible
Internal and external continuing
vocational training.- Source of financing and collection mechanism
Employer, employee
- Financing formula and allocation mechanisms
Labour code includes a general clause on the reimbursement of training costs incurred by the employer in the last year in the event that the employee resigns without a valid reason (according to the law or contract terms); detailed conditions may be agreed upon in employment contract.
The law does not specify the exact (share of) costs to be reimbursed or the type of training that payback clauses may apply to.
The timeframe for reimbursement and the share of the training costs depend on the cost of the training; the amount to be reimbursed depends on the time between the training and the termination of the contract.
The costs for internal and external continuing vocational training can be covered by payback clauses; employees can be required to reimburse not only the fees and payments for training courses but also direct and indirect labour costs.
Reasons for payback clause to become efectve: voluntary resignation within binding period; dismissal due to a serious contract break; non-termination of the training.
- Volumes of funding
na
- Beneficiaries/take up
na
- Organisation responsible for monitoring/evaluation
Ministry of Social Affairs and Labour of the Republic of Lithuania.
- Most relevant webpage - in English
na
- Most relevant webpage - local language
na
- Sources
Ministry of Social Affairs and Labour, http://www.socmin.lt