If you`re running a small business, it`s important to help your team grow and grow – but you also need to make sure that any investment you make in your team is protected. Here, a training contract can help. In this article, we show you exactly how to use a training contract and we provide you with a free and professional training agreement template. However, in some situations, small businesses also need to protect investments in their employees. L&D doesn`t always cost the world, but some courses or professional qualifications can be very expensive – if an employee leaves your company shortly after completing a training course your company has paid for, it could seriously get you out of your pocket. If you are looking for a model of training agreements that you can use in your small business, simply click on this link. This model was developed by our professional HR consultants, CIPD qualified, specialized in HR support for small businesses and startups. However, if the training contract is properly drawn up, it can reasonably be expected that the employer will pay a certain share of £2000. If the cost of the course is relatively low, the training contract could come from the employee`s last salary. If it`s more expensive, employers could establish a more structured payment plan.
Properly executed, training agreements are a completely legal and appropriate way for companies to protect themselves financially. However, if you decide to place one, there are a few things to watch out for. Not only will your company not benefit in the short term from the training it has paid for, but it would end up paying again for the same training if it started a replacement again. Consider the stuck costs inherent in any recruitment process, and you can see how that could put a small business in a really tough position. The purpose of training agreements is to protect companies from loss when they invest in their team. This is not a tactic to prevent people from stopping. This is the reason why the amount of money that the training contract must recover must be an appropriate estimate of the money lost by the company. Some training agreements operate on a kind of sliding scale where the longer the employee stays in the company, the less he has to repay if he decides to continue. In other companies, the training contract is a bit black and white, a certain cut-off point imposing when the employee is no longer responsible for refunds. If a training agreement has the practical effect of „capturing“ an employee in their current role, it may be deemed unenforceable. .