Payback clause

The payback clause is closely linked to the learning contract (training leave), in which employers and employees can agree on a payback clause. In general, payback clauses can be applied for any kind of training that has been undertaken voluntarily by the employee and is not mandatory as a part of the work activity. In a learning contract, the employee agrees to complete the studies and to refrain from terminating his employment by way of notice following graduation for a period of time commensurate for the amount of support, not exceeding five years. The leaning contract may be terminated by either of the parties with immediate effect in the event of subsequent major changes in the party's circumstances whereby carrying out the commitment is no longer possible or it would result in unreasonable hardship. In the event of termination by the employee, the employer may demand repayment of the support provided. The employer's right to demand repayment of the support shall apply in proportion to the length of time that has elapsed from the term of the contract. Where employment is terminated by the employer, repayment of the support may not be demanded. A payback clause is not valid in case the employee attends primary school to complete his basic school (Grade 8) education during the training leave.