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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. A training agreement is a written agreement between an employer and his employee that sets out the terms of any training that the company pays for them. It defines the cost of training, who provides the training and who is primarily responsible for remuneration. The second thing to think about when using training agreements is the idea of “trade restriction”. As I said, training agreements are supposed to protect companies from losing their investments – but the law will not allow an employer to use them to prevent someone from changing jobs inappropriately. If a training agreement has the practical effect of “capturing” an employee in their current role, it may be considered unenforceable. The Caldecott Foundation invests considerable funds in training to get the following: – But if that employee stayed two years after the course ended and took that training every day, then £2,000 is not a reasonable estimate of the money the company really lost. In that case, it wouldn`t be appropriate to use a training contract to try to get the full £2,000 back – and most likely he wouldn`t be legally successful. 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. 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. The Caldecott Foundation expects a certain commitment from its employees in exchange for the obligation to train staff. The agreement between the Caldecott Foundation and employees who start financial training is described below: – However, if the training contract is properly drawn up, it can reasonably be expected that the employer will pay a certain share of £2000. This is where a training reimbursement agreement comes in – it`s a way for companies to make sure they don`t lose financially if they pay for the development of their employees.