Training costs refund
- Name of the instrument - Local language
- Name of the instrument - English translation
- Training costs refund
- Type of instrument
- Payback clause
- Type of entry
- Single instrument
- Short description
Employers and employees can agree on a payback clause. In compensation for employer-provided/financed training, employees commit themselves to stay in the company for an agreed period. According to the Labour Code, the retention period must not exceed 5 years (8 years in specific cases, e.g. very costly training, such as pilot-training). Upon employee's voluntary termination of employment contract before the agreed period, the employer may recover (part of) training costs.
- Short description of the related instruments
- Level of operation
- Name of a part of the country
- Name of the region (for regional instruments)
- Name of the sector (for sectoral instruments)
- Key scheme
- Legal basis
§ 2d AVRAG (Arbeitsvertragsrechts-Anpassungsgesetz) (act on the adaptation of the law of labour contracts)
- Year of implementation
Federal government: enacting the law
Chamber of Commerce: providing guidance
The costs and duration of the training as well as the repayment obligation of the employee need to be agreed on (in written form) before training takes place.
The payback clause becomes effective if employee voluntarily ends the working contract before the agreed binding period. The clause is also applicable when the worker is dismissed for misbehavior. In case of consensual termination, the payback clause is also applicable. No payback obligation is possible during the probationary period.
- Eligible group(s)
All employers, employees
- Group(s) with preferential treatment
- Education and training eligible
Training costs are only eligible for compensation if the training increases the earning power of an employee on the labour market. Firm-specific training is therefore excluded.
- Source of financing and collection mechanism
- Financing formula and allocation mechanisms
The amount to be repayed decreases over time.
- Volumes of funding
- Beneficiaries/take up
- Monitoring/evaluation reports available
- Most relevant webpage - in English
- Most relevant webpage - local language
Republik Österreich (2015) § 2d AVRAG (Arbeitsvertragsrechts-Anpassungsgesetz). Wien. Online: http://www.jusline.at/2d_Ausbildungskostenr%C3%BCckersatz_AVRAG.html