Payback commitment
- Name of the instrument - Local language
- Rückzahlungsverpflichtung
- Name of the instrument - English translation
- Payback commitment
- Scheme ID
- 57
- Country
- Germany
- Reporting year
- 2020
- Type of instrument
- Payback clause
- Sub-type of instrument
- Payback clauses are possible within set limits
- Type of entry
- Single instrument
- Short description
Employers and employees can agree on a payback clause, with the civil law setting the framework for the agreement. In compensation for employer-provided/financed training, employees commit themselves to stay in the company for an agreed period or (partially) pay back the costs of training. The retention period has to be in proportion to the benefits of training (duration and the level of qualification). The amount to be repaid is reduced on a monthly base. Payback clauses are possible for any type of education. No preferential treatment is applied.
- 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
- Legal basis
- Bürgerliches Gesetzbuch (BGB) (Civil law) + jurisdication by Federal Labour Court
- Objective(s) and target(s)
- Not available
- Operation/management
- A payback clause is agreed by the employer and the employee. In case the employee leaves the company within the retention period, a certain amount needs to be repaid. In case of legal issues, the Federal Labour Court is responsible for the jurisdiction.
- Eligible group(s)
- All employers
- Group(s) with preferential treatment
- No preferential treatment
- Education and training eligible
- Professionally relevant
- Source of financing and collection mechanism
- Employer funds training, employee provides (partial) repayment of eligible training costs in case of premature depature from the company
- Financing formula and allocation mechanisms
- It is a prerequisite for the effectiveness of a payback clause that the employee has earned a "cash benefit" by the training measure. The retention period has to be in proportion to the benefits of training (duration and the level of qualification). Training duration up to 1 month: Binding period up to 6 months; Training duration up to 2 months: binding period up to 1 year; Training duration 3 to 4 months: Binding period up to 2 years; Training duration of 6 to 12 months: Binding period up to 3 years; Training duration of over 2 years: Binding period up to 5 years. The amount to be repaid is reduced on a monthly basis.
- Eligible costs
- All costs paid by the employer related to the training taken by the employee (e.g. wage costs, travel costs, costs for materials (books)).
- Volumes of funding
- Not applicable
- Beneficiaries/take up
- Not applicable
- 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
No changes
- Sources
- https://www.verdi-bub.de/index.php?id=920
- Bundesrepublik Deutschland (2002) Bürgerliches Gesetzbuch , Buch 2 - Recht der Schuldverhältnisse (§§ 241 - 853), Abschnitt 2 - Gestaltung rechtsgeschäftlicher Schuldverhältnisse durch Allgemeine Geschäftsbedingungen (§§ 305 - 310). Berlin. Online: http://dejure.org/gesetze/BGB
On this page:
- Short description
- Level of operation
- Name of a part of the country
- Name of the region (for regional instruments)
- Name of the sector (for sectoral instruments)
- Relevance
- Legal basis
- Objective(s) and target(s)
- Operation/management
- Eligible group(s)
- Group(s) with preferential treatment
- Education and training eligible
- Source of financing and collection mechanism
- Financing formula and allocation mechanisms
- Eligible costs
- Volumes of funding
- Beneficiaries/take up
- Organisation responsible for monitoring/evaluation
- Most relevant webpage - in English
- Recent changes
- Sources