Definition
A repayment clause for training costs obliges the employee to repay the training costs covered by the employer if they leave the company before the end of a specified period. Such clauses are only valid if the training provides the employee with a genuine competitive advantage, the length of the commitment period is proportionate to the duration of the training, and the repayment obligation decreases as the length of service increases. Anyone who resigns because the employer terminates their employment for operational reasons or is at fault for the separation is generally not required to repay anything.
Specialist solicitor in employment law
Over 15 years’ experience in employment law
Classification under employment law
Repayment clauses for training costs are only valid if the commitment period is reasonable and you are required to make a payment in the event of voluntary resignation or dismissal for misconduct. According to Federal Labour Court (BAG) case law, unreasonable clauses are completely invalid.
Distinction from related terms
Repayment clause: The obligation to repay usually arises from a contractual agreement. The validity of such clauses depends on the duration, costs and the employee’s commitment.
Coverage of training costs: In this case, the employer bears the costs without a mandatory repayment obligation. Repayment only becomes relevant if corresponding agreements have been made.
Practical tip
Check your repayment agreement carefully: as a rule of thumb, the commitment period is a maximum of one month for every month of training (less for shorter courses). If the clause is too long or unclear, you often won’t have to repay anything at all.
