Many businesses have signed occupational training contracts with their employees in order to boost expertise and develop human resources. However, conflicts in employee training continue to occur on a regular basis. So, what is the statute that compensates for training expenses? What are the reasons for expense reimbursement? Under what conditions is the employee required to pay for the cost? To clarify this issue, Hong Bang Law Firm with experienced team in labor consultancy, enterprises would like to send to Clients the following advice:

General regulations for compensation for training cost

Concept of compensation for training expenses

Training costs include those specified in valid documents on payments for trainers, training materials, training locations, equipment, practice materials, other supportive expenses for the learner, the salary, social insurance, health insurance and unemployment insurance premiums paid for the learner during the training period.  In case the employee receives the training overseas, the training costs also include the travelling and living expenses during the training period.

Thus, compensation for training costs is understood as the employee will refund the cost of training to the employer in accordance with the law or by agreement of the parties.

The subject compensates for training costs

Workers are obliged to compensate for training costs when they unilaterally terminate the contract illegally.

Basis for compensation for training costs

Pursuant to Article 62 of the Labor Code 2019, both parties must enter into an occupational training contract in case the employee is provided with advanced training or retraining at home or abroad funded by the employer or sponsorship from the employer’s partner.

The occupational training contract shall be made into 02 copies, each of which shall be kept by a party. A occupational training contract shall have the following major contents:

• The occupation in which training is provided;
• Location, time of training and salary for the training period;
• The work commitment period after training;
• The training costs and responsibility for reimbursement thereof;
• Responsibilities of the employer;
• Responsibilities of the employee.

Accordingly, the occupational training contract is one of the basis for arising rights and obligations of the parties when participating in training. The contents of the occupational contract contain the training fee and the responsibility to refund the training fee of the employee as the basis for compensation for training costs, if the parties have an agreement when the employee terminates the labor contract to reimburse the labor expenses.

Cases where training costs must be compensated

The employee unilaterally terminates the contract illegally

• Illegally termination of a labor contract is a case where the employee terminates the contract that does not fall under the cases of the right to unilaterally terminate the contract as prescribed in Article 35 of the Labor Code 2019.
• Pursuant to Clause 3, Article 40 of the Labor Code 2019, employees must reimburse the employer for training expenses under Article 62 and other obligations as prescribed by law.
• Pursuant to Clause 2, Article 61 of the Law on Vocational Education 2014, graduates of training courses provided by the employer for training expenses must work for them within the time limit committed in the occupational training contract, if they fail to fulfill their commitments, they must pay compensation.

The employee terminates the contract in accordance with the law

• The employee terminates the contract in accordance with the provisions of the labor law in Article 35 of the Labor Code 2019 but in the vocational training contract of the parties there is an agreement on the responsibility to refund and responsibility of the employee when performing the training contract. Although the contract is terminated in accordance with the provisions of law, the employee still has to refund the training costs.

The above is the advice of the Hong Bang Law Firm on compensation for the cost of training of employees. In order to fully support the rights of enterprises and employees, Hong Bang Law Firm provides the following labor sector services.

Services of Hong Bang Law Firm

Hong Bang Law Firm has advised and supported many enterprises in labor relations. The services provided by Hong Bang Law Firm are as follows:

• Legal advice on labor relations;
• Advising on assessment of employment contracts, labor regulations, other internal documents of enterprises;
• Advising on the compilation of employment contracts, labor regulations and other internal regulations of enterprises;
• Advising on the direction of resolving labor disputes.

If you need more detailed advice and answers as well as how to access this service, please contact directly our Lawyer Nhat Nam via hotline: 0912.35.65.75, 0912.35.53.53 or call the free legal consultation hotline 1900.6575 or send a service request via email: lienheluathongbang@gmail.com

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