Payback clause

PDF Version
Name of the instrument - Local language
Payback clause
Name of the instrument - English translation
Payback clause
Scheme ID
358
Country
Denmark
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

In Denmark, the applicable laws set no explicit limitations to a payback clause, that is an agreement between employer and employee on the payback of training costs covered by the employer in case of voluntary termination of the employment by the employee. The parties can freely agree on any component of the payback clause. Agreements deemed unfair, however, can be challenged in the Labour Corts. Overall, the application of payback clauses for training costs is perceived as of limited importance within the overall co-funding arrangements for CVT.

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
Not applicable (use of payback clauses are not limited by law)
Objective(s) and target(s)
Not applicable (use of payback clauses are not limited by law)
Operation/management
Not applicable (use of payback clauses are not limited by law)
Eligible group(s)
All employers
Group(s) with preferential treatment
No preferential treatment
Education and training eligible
Not applicable (use of payback clauses are not limited by law)
Source of financing and collection mechanism
Employers can recapture a part of training costs in case an employees premature leave - no limitations are set for the free agreement of the payback clause by law.
Financing formula and allocation mechanisms
Employees need to repay a part of the training costs after voluntary termination - no limitiatons are set for the details of the payback clause
Eligible costs
Not applicable (use of payback clauses are not limited by law)
Volumes of funding
There are no studies available, however, the topic plays no role on the policy agenda
Beneficiaries/take up
Not applicable
Organisation responsible for monitoring/evaluation
Not applicable
Most relevant webpage - in English
Not applicable (use of payback clauses are not limited by law)
Recent changes

Not applicable (use of payback clauses are not limited by law)

Recent changes in response to COVID-19

Not applicable (use of payback clauses are not limited by law)

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