Payback clause

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Name of the instrument - Local language
Payback clause
Name of the instrument - English translation
Payback clause
Scheme ID
347
Country
Cyprus
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

The payback clause is not a primary type of financial instrument in Cyprus, hence it does not exist as an "official instrument or scheme". In the rare cases where a payback clause is implemented, it is governed by individual agreements, employment or otherwise, between employer and employee. There is no national law or national collective agreement to govern it. Training and training costs repayment may be scantly referred to in some sectoral collective agreements without any details as to how it should be implemented. The amount of money to be paid back and the terms of repayment are mutually agreed upon between employer and employee prior to the provision of training. Almost in all cases, payback refers to scholarships where the training costs are rather high and not to cases of normal training activities (VET) of short duration where the costs per person are much lower.

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
Further instrument
No specific legislation
Objective(s) and target(s)
Not applicable
Operation/management
There is no universal operation / management of the scheme. In the few places where it is implemented, it varies from enterprise to enterprise.
Eligible group(s)
All employees
Group(s) with preferential treatment
No preferential treatment
Education and training eligible
Normally it relates to higher education, at tertiary level (post secondary education), or to training of long duration (several months or years) where the training costs tend to be rather high.
Source of financing and collection mechanism
Funding can originate from the employer that will ultimately benefit from the training or from scholarship providers (government, large organisations, educational institutions).
Financing formula and allocation mechanisms
There is no one financing formula or a standard repayment mechanism since there is no national law or collective agreement to regulate it.
Eligible costs
Where such an instrument exists it's more likely to cover - Tuition fees/fees for participation (external providers) - Costs for training materials (e.g. books) - Travel costs - Accommodation costs - Meal costs or daily allowance for subsistence
Volumes of funding
Not available
Beneficiaries/take up
Not available
Organisation responsible for monitoring/evaluation
Not applicable
Most relevant webpage - in English
Not available
Recent changes

No recent amendment

Recent changes in response to COVID-19

All training activities during the pandemic period were affected negatively. There was a drastic reduction in such activities. It is therefore reasonable to conclude, because of the financial difficulties that the pandemic has created that the repayment of training activities was affected. No official data is available.

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