Payback clause

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Name of the instrument - Local language
Scholingsbeding
Name of the instrument - English translation
Payback clause
Scheme ID
168
Country
Netherlands
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

Employer and employee can agree on a payback clause. Arrangements for training (including payback clauses) are made in the context of collective agreements in industry sectors and are valid for a specified time (arrangements may vary from one sector to the other). Examples for regulations on payback clauses in collective agreements show that it is expected that the share of costs to be reimbursed should decline over time (e.g. 100% within the first year, 50% within the second year) and that the binding period needs to be limited (e.g. 2 years).

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
Regulated through collective agreements
Objective(s) and target(s)
A payback clause is drawn up in the case of a company being left by an employee while he/she has recently received training and incurs costs that have been paid by the employer. These costs are paid back in proportion to the years. A payback clause is part of the so-called non-competition clause and contains a prohibition for the employee to perform similar activities either in another company or as an entreprenafter the end of his contract.
Year of implementation
1978
Operation/management
The payback clause must be contained in an agreement between the employer and the employee and must fulfil three conditions: i) It must specify the time-period in which training is useful for the employer and during which study costs will have to be paid back by the employee if the work relationship is terminated; ii) The employee must pay back his or her salary if the work relationship is terminated during or immediately after the training; iii) The amount to be paid back must decrease linearly during the time-period specified in 1.The maximum time allowed, in which employees are obliged to pay back training costs is usually 100% within the first year and 50% within the second year of leaving the employment contract.
Eligible group(s)
All employers
Group(s) with preferential treatment
No preferential treatment
Education and training eligible
All types of learning contents can be covered, including training for current work tasks, for future work tasks, and for maintaining and enhancing employability
Source of financing and collection mechanism
Employer funds training, employee provides (partial) repayment eligible training costs in case of premature depature of the company
Financing formula and allocation mechanisms
Depends on the collective agreement.
Eligible costs
Depends on the collective agreement, but generally speaking, tuition fees /fees for participants (external providers) and costs for training materials
Volumes of funding
Not applicable
Beneficiaries/take up
A considerable proportion of employees report the use of payback clauses by their employers, but no specific data is 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

No changes

Sources
https://www.rechtspraak.nl/Onderwerpen/Concurrentiebeding
https://www.overeenkomst.nl/overeenkomst/model-opleidings-scholingsbedi…
https://www.rijksoverheid.nl/documenten/kamerstukken/2020/11/13/kamerbr…
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